TurboTax Small Business Tax Software - Sole proprietors and self-employed

Small Business Owner
2019 - 2020 Tax Filing Tips

Small Business Tax FilingWith the new year upon us, it's a good time to adopt a more effective philosophy for your small business. Fact is many small business owners find their daily tasks eating up all their spear time due to poor tax record keeping practices.

If this is the case with you, it's time to adopt a new standard for keeping your tax documents organized, so that you can make the tax filing season flow smoothly, and reduce your stress and tax liability all at the same time. Here are some suggestions to help you get organized and keep you small business documentation organized for tax season.

Tax Document Organization

As the new year rings in it's time to safely store away you old tax records and start a system to organize the new ones that are being created to handle the current years transactions. This is a great time to think about the fact that a well organized system will save you lot of time and frustration when your ready to dig into the next tax seasons tasks. Storing documents and receipts in an organized fashion so that they are easy to locate when required for your income tax preparation it imperative to reducing stress.

Start with setting up a system to organize the following documentation:

Calculating Your Estimated Tax Payments

Small Business Tax PreparationThe TurboTax Business Edition is a great tool in your arsenal if your business is a sole proprietorship, S Corporation, or partnership. TurboTax Small Business Tax Software will offer many tools to help you stay on top of your yearly tasks including helping you estimate your required quarterly tax payment installments.

Quarterly tax payments must be postmarked by the day they are due to be considered paid on time. Additionally based on self employment income you may be required to pay additional Medicare tax payments as well.

If are a C corporation, be sure to determine the due dates of your estimated tax payments ahead of time and get them in on time to avoid penalties.

Organizing Your Small Business Payroll

If you perform all your own payroll services in house, there’s plenty of extra work needed to keep your business on track. Along with normal quarterly tax filings, you are required to submit a Form 940 (FUTA tax) along with W2 Forms by January 31st as well as any state required documents. Review your W2 forms carefully and reconcile the total of W2 wages with your general ledger to make sure all calculations add up correctly. Be sure numbers match for each employee prior to mailing the W2's. Confirm all social security numbers and mailing addresses for each of your employees.

All 1099 forms are also required to be mailed by Jan. 31st to those who provided over $600 in services or rental income. Software programs such as QuickBooks, will simplify the process by generating completed forms for you. This software allows you to run a 1099 report to determine which payees you need to supply forms to. Be sure that a Social Security number or federal ID number is listed on the 1099 form for each payee and that those numbers match each name.