As you embark on your financial journey in 2024, staying vigilant and informed about various deadlines and responsibilities, such as tax filing and maximizing tax deductions, is crucial when business tax filing.
- Jan. 16, 2024.: Q4 2023 Estimated Tax Payments Due
- Mar. 15, 2024.: S Corp. and Partnership tax returns due for the tax year 2023
- Apr. 15, 2024.: Last day for making 2023 contributions to IRAs and HSAs
- Apr. 15, 2024.: Sole proprietor and C Corp. tax returns due. Q1 2024 estimated taxes are due.
- June. 17, 2024.: Q2 2024 estimated taxes due
- July. 31, 2024.: Tax Form 5500 – 401(k) Retirement Plan Filing deadline
- Sept. 16, 2024.: Extended calendar-year for S-Corp. and Partnership and tax returns due for 2023. Q3 2024 estimated tax payments due.
- Oct. 15, 2024.: Extended sole proprietorship and C Corp. tax returns due. Tax Form 5500 – 401(k) Retirement Plan Extended Filing deadline
- Dec. 16, 2023.: Q4 2024 estimated tax due for C Corp.
- Jan. 15, 2025.: Q4 2024 estimated tax due for individuals tax payers
- Updates and Changes for Business Tax Filing in 2024
As the landscape of tax credits and deductions evolves, it is crucial for both seasoned entrepreneurs and those embarking on a new business venture to stay informed. Familiarizing oneself with the latest updates is essential for accurately filing taxes and maximizing potential benefits before the 2024 business tax deadline.
To make informed decisions regarding your business tax filing in 2024, consult with our free and dedicated tax professionals who will guide you from start to finish for maximum tax refund.
What’s New on 2024 Business Tax Return Filing
New tax regulations are constantly being introduced and updated. As we prepare for the 2023 tax year, it’s important to take note of the key changes that will affect your return. These changes encompass a range of areas, including business meals, expanded credits for small employers’ retirement plans, tax incentives for purchasing clean vehicles, credit transferability, adjustments for inflation, the standard mileage rate for business driving, and the small employer’s health insurance credit.
Business Meals Tax Deduction
Starting in the year 2022, the full tax deductibility of business meals was implemented. However, in 2023, only half of the cost can be tax deducted.
More Tax Credits for Small Company Retirement Plans.
Innovation has taken hold in the realm of financial planning as a plan’s origins have broadened. Moreover, a fresh credit has emerged, focusing on specific employer contributions as an alternative to the traditional deduction.
Tax Credits for Buying New Cars.
The world of tax credits offers various benefits to those interested in purchasing plug-in electric and fuel-cell vehicles. These incentives include the new clean vehicle credit, previously owned clean vehicle credit, and the commercial clean vehicle credit. Each of these credits has its own unique set of eligibility rules and credit limits.
Tax Credit Transferability.
The opportunity to exchange green energy tax credits for cash is an enticing possibility. Take, for instance, the alternative fuel refueling property credit case. This tax credit, designed for installing charging stations, can be transformed into immediate cash through the sale to an interested buyer.
Adjustments for Inflation in 2024 Business Tax Return Filing
Every year, the IRS makes numerous adjustments to various tax items to accommodate inflation. These adjustments significantly impact individuals’ tax brackets, specifically affecting the amount pass-through entity owners must pay on their share of business income. Additionally, cost-of-living adjustments (COLAs) have an influence on several other aspects relevant to businesses. These include the standard mileage rate for business driving, the small employer’s health insurance credit, the gross receipts test, the Sec. 179 tax deductions (first-year expensing), the limitation on losses for non-corporate taxpayers, and the qualified business income (QBI) tax deduction.
Standard Mileage Rate from Driving for Business
Regarding business driving, the standard mileage rate plays a crucial role. It is worth noting that if one doesn’t deduct the actual expenses, the IRS-set rate for the year 2023 stands at 67¢ per mile.
Small Employer’s Health Insurance Tax credit.
In 2023, the adjusted amount for the Small employer’s health insurance credit, which is partly determined by wages, is now available.
Gross Receipts Test.
The eligibility assessment, commonly known as the gross receipts test, is pivotal in various aspects of a business’s financial operations. It determines the suitability of utilizing the cash method of accounting, the need for inventory accounting, and other specific purposes.
Limitation on Losses for Non-Corporate Taxpayers.
The current year’s restriction on losses for non-corporate taxpayers has been raised, allowing excess losses to accumulate as part of a net operating loss for utilization in future years.
Qualified Business Income (QBI) Tax Deduction.
With the start of 2023, a significant increase in the taxable income threshold could limit or prohibit the Qualified Business Income (QBI) deduction.
Sec. 179 Tax Deductions (first-year expenses).
The option of immediately deducting the cost of machinery, equipment, and other eligible property placed in service before the end of 2023 instead of gradually depreciating it is referred to as the Sec. 179 deduction or first-year expense. This tax deduction allows businesses to tax deduct up to the 2023 limit of $1,160,000.
Tags: 2024 Business Tax Filing, business tax, business tax filing
