There are several important things to be aware of when preparing tax returns. The majority of them involve accounting methods used to record business expenses and income. Depending on whether an entity is a cash or accrual entity, the accounting method may be either. Small Avast Business business owners are required to also make a quarterly estimated tax payments. These tax payments can be done using the Electronic Federal Tax Payment System, or by submitting 1040-ES forms that include a tax payment.
Intuit offers several levels of service to assist small businesses with tax returns. If you prefer an approach that is more hands-off they can go with the online TurboTax package or the more complex TurboTax Business software. This option matches business owners with a tax expert who prepares their tax return from start to finish.
TurboTax Business can also help in the preparation of 1099-MISC, W-2, and 1040-DIV for contractors and employees. It can also calculate estimated tax payments that are required by the IRS when you expect to owe over $1,000 in taxes.
The program isn’t cheap The program can be costly, however. The cost can quickly mount up with the federal filing costing $200 and each state $55. There are numerous advantages, including live support from an expert and the assurance of 100 percent accurate calculations. These extra features can be expensive for small business owners. However, there are alternatives to TurboTax that are more affordable.
