There are many aspects to be aware of when preparing tax returns. Most of them concern the accounting methods used to record the income and expenses of businesses. Depending on whether the company is an accrual or cash entity, the accounting method may be either. Small business owners often must also make a quarterly estimated tax payments. These payments can be made online through the Electronic Federal Tax Payment System or by submitting a 1040-ES tax form along with a tax payment.
Intuit offers multiple levels of service to assist small businesses with tax returns. If you’re looking for an approach that is more hands-off they can select the online TurboTax package or the more involved TurboTax Business software. This option provides entrepreneurs with a tax professional who can prepare their return from start to finish.
TurboTax Business also helps with the preparation of W-2, 1099-MISC, and 1040-DIV forms for employees as well as contractors. It will also calculate the estimated tax payment required by https://turbotaxsmallbusiness.com/top-5-most-promising-virtual-data-rooms-of-2021/ the IRS in the event that you expect to owe over $1,000 in taxes.
The program can be expensive however. With a price of $200 for the federal filing and $55 per state, it’s easy to add up. There are many advantages, including unlimited live support from a professional and a guarantee of 100 100% accurate calculations. However, these additional features can be difficult for some small businesses to afford. There are other options that are less costly than TurboTax.