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When Are 2024 Business Tax Filing Due?

Posted by admin on January 25, 2024
Last modified: January 25, 2024

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.

2024 Business Tax Filing

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.

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Category: Tax Deadlines, Tax Deductions and Credits, Tax for Business, Tax News, Tax Year 2023
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Filing Your Business Tax Return in 2024

Posted by admin on January 18, 2024
Last modified: January 18, 2024

Every year, business owners face the dreaded task of filing business tax returns. This includes filing federal, state, and local tax returns. Evading this responsibility is not an option. The key to successfully managing this daunting task is to begin early and thoroughly prepare.

When Are Business Tax Returns Due for 2023?

It is important to be mindful of the due date for submitting your income tax returns. Failure to adhere to the deadline could result in penalties for late filing, which unfortunately cannot be deducted from your taxes. Provided below are the federal income tax return deadlines applicable for the tax year 2023.

For Business Entities

In order to meet their tax obligations, partnerships, S corporations, and calendar-year C corporations need to file their income tax returns within specific deadlines. For partnerships and S corporations reporting on a calendar year basis, the deadline for filing their 2023 income tax returns is March 15, 2024.

When it comes to tax filing, limited liability companies (LLCs) with multiple members typically choose to file partnership returns. However, LLCs that have opted to be taxed as corporations have a different filing requirement. On the other hand, for one-member LLCs, their business tax return is filed together with the owner’s individual tax return.

For Business Owners

In order for business owners to fulfill their obligations, they must submit their personal income tax returns for the tax year 2023 by April 15, 2024.

When it comes to filing business tax returns, it’s important to understand your state’s specific requirements. These requirements can vary from state to state, so it’s crucial to be aware of them in order to avoid any potential issues. In fact, some states have filing deadlines that coincide with the deadlines for federal income tax returns.

When it comes to businesses conducting online transactions, it is crucial to pay close attention to the filing requirements. Certain states perceive this as a significant link (“nexus”) to them, consequently necessitating state tax return submission.

If a federal disaster area affects your business or personal income tax return, you might be eligible for an extension on the federal filing deadline. Disaster victims are automatically granted a 60-day filing extension, but the IRS may extend this period for up to one year.

In the case of the devastating Hawaii wildfires that ignited on August 8, 2023, individuals who were impacted and had previously been granted an extension for their 2022 income tax returns were given an extended deadline, until February 15, 2024, to submit their filings. Additional details regarding the filing extensions available for those affected by natural disasters can be found on the official IRS website.

business tax

File a Tax Extension for Business Tax Filing

In the event that the deadline for filing your business tax return cannot be met due to unforeseen circumstances, there is a convenient solution available to you. By simply making a request, a six-month extension can be granted automatically without the need for any explanation.

When businesses and individuals need more time to file their tax returns, they rely on specific IRS forms. For businesses, their go-to form is the IRS Tax Form 7004, also known as the Application for Automatic Extension of time to file certain business income tax returns. IRS Form 4868 is commonly utilized by various individuals, such as sole proprietors, self-employed individuals, and one-member LLCs.

When it comes to filing tax returns, many people mistakenly believe that an extension grants them additional time to make their payments. However, it’s important to note that this is not the case. In order to avoid facing late-payment penalties, it is wise to pay the amount you expect to owe as soon as possible.

How To File Business Tax

In the government’s 2022 fiscal year ending on September 30, 2022, a significant majority of business tax returns were submitted electronically as E-File.

There are three excellent reasons for this.

Given the current shortage of IRS personnel and the persistent backlog of paper returns, e-filing remains the most efficient method for processing tax returns promptly.

If business owners choose to report their portion of business income on their individual tax returns, they can optimize the speed of receiving their tax refund by E-File. Moreover, opting for direct deposit can further expedite the process.

In order to promote efficiency and accuracy, tax return preparers who submit over ten information tax returns during the 2024 tax filing season are required to file their returns, with a few exceptions granted electronically.

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Category: Tax for Business, Tax Tips and Tricks, Tax Year 2023
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How Can You File Your Business Taxes?

Posted by admin on June 1, 2023
Last modified: June 2, 2023

Business tax filing can vary depending on the type of business structure in place. To ensure that your business taxes are done correctly, there are some key steps that should be taken first to establish what type of business setup has been used:

What timeline should you be following to do your business taxes?

Need a hand in filing your business tax online? First, let’s see when you need to file your taxes.

business tax

Sole proprietor or Single Member LLC:

For many gig and freelancers, operating as a single-member Limited Liability Company (LLC) or as a Solo Proprietor is preferred.

Partnership or Multi-Member LLC:

An LLC or a business formed as a “partnership-multi member” is not taxed as a corporation but instead has multiple owners.

S Corporation:

An entity with the legal status of a corporation may selected to be taxed as an ‘”pass-through entity,”‘ such as a partnership or LLC.

C Corporation:

When a large business requires its own separate legal identity, they often form a type of company known as a ‘Corporation.’ This entity exists independently of any owners and carries its rights and responsibilities.

Trying to figure out which form to file and when can be a complicated task, especially depending on the entity’s structure. Business taxes may either be paid by the owner or the business itself – this all depends on what legal setup has been established. Furthermore, every type of entity has its own IRS form and filing deadline that must be adhered to.

Business Tax Filing for Sole Proprietorships

Sole proprietorships are the most simple and straightforward type of business tax filing. You can confidently fill out Schedule C, which is only two pages long. This form is attached to the 1040 individual return, which is then filed with tax authorities. Being this simple, tackling this task via tax software or by hand is a safe bet.

To complete your taxes, the following documents are essential:

  • Schedule C: Profit or Loss From Business
  • Schedule SE: Self-Employment Tax

Additional paperwork will be needed should you specify a home office deduction or account for depreciation, such as:

  • Tax Form 8829: Expenses for Business Use of Home
  • Tax Form 4562: Depreciation and Amortization

Filing a business tax return on Form C is usually quite uncomplicated, but certain elements can be confusing. For example, you may need to grapple with the Qualified Business Income Deduction. Again, business tax is an area where it can be useful to have the professional help of an experienced service for filing taxes.

Business Tax Filing for Simple Partnership

It’s advised to avoid taking the DIY route when it comes to business partnerships. Those kinds of entity structures tend to be complicated, which is why you should use software or consult a professional instead. In addition, when filing individual income taxes, you’ll need to fill out a K-1 form to let the IRS know what part in the partnership you have and how much money was earned through it.

To comply with the K-1 filing requirement, it’s important to maintain a record of how much of the company each partner possesses according to their individual contributions. This is known as the basis of the partnership. Losses or profits for tax purposes must be allocated accordingly among partners based on their basis in the business.
Do you know when a tax return is considered simple? To understand this, it’s important to define a simple partnership.

So, how does one identify whether or not they have one?

Are you worried about having to report a Balance Sheet on your tax return? To be in the safe zone, confirm that these two statements are true: Your gross income is less than $250,000, and business assets are under $1 million. When both of these business conditions have been met, there will be no need to submit a balance sheet detailing all assets and liabilities as part of taxation. Doing so requires good bookkeeping skills for accurate documentation annually.

When running your own small business, nailing down the financial details is not easy. While keeping accurate books is essential, getting the bottom line accurately can be difficult. Attempting this manually isn’t recommended.

When should you seek help from a Dedicated Tax Professional?

Hiring an accountant in the business world shouldn’t be taken lightly. Doing so should be something other than a trial and error process, as even the slightest error can lead to serious repercussions further down the line. Avoiding such a “fake till you make it” approach is essential for successful financial management.

Prior Tax has free dedicated Tax Professional support to walk you through your business tax filing step by step from start to finish. Don’t hesitate to reach out and find your dedicated tax professional.

When it comes to tracking the financial side of your business, finding the right professional help can save you from costly mistakes. This is especially true when your company runs on an accounting method other than “cash”. Whether it’s accrual or hybrid accounting, hiring an accountant is wise. The complexities of these models can often be difficult to manage; even experts may make errors that could end up costing you problems in the long run.

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Category: Tax for Business, Tax Tips and Tricks, Taxes for Prior Years
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