tax return

Tax season is a good time to think about tax preparation for the next year. There may have been unforeseen obstacles you encountered with filing this year that you can avoid next time.  Since many of us are working from home due to stay-at-home orders because of the pandemic, our new reality will shift our tax preparation process, so it’s important to start noting changes and differences now, before you go to file.  Now that your 2019 taxes are filed, it’s time to start preparing to file your 2020 taxes in 2021. We’ll take you through the step-by-step process on how to do just that. File the right tax return for your business Know your tax filing deadline Gather your records Look for tax deductions Deduct your estimated tax payments File your taxes File the Right Tax Return For Your Business There are different tax returns based on the size and needs of your business. Choosing the right tax form depends on how you operate your small business.  Sole Proprietorship Schedule C Schedule C-EZ, Form 1040 (individual income tax return) Limited Liability Company (LLC) Form 1065 (return of partnership income) Form 1040 (individual income tax return) Schedule C (a Schedule C is only used if one person owns 100 percent of the LLC business)  Partnerships  Form 1065 (return of partnership income) Form 1040 (individual income tax return) S Corporation Form 1120S (income tax return for S corporation) Form 1040 (individual income tax return) Schedule K-1 (individual owner shares) Additionally, the IRS requires businesses who made or received payments for certain transactions to file an information return. Information returns are not income tax returns but are a requirement for reporting purposes to assist other taxpayers in preparing their return. Examples include: 1099s, 1098s, 1095s and W-2s. Know Your Tax Filing Deadline Although the IRS extended the deadline this year for …

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