When preparing tax returns for small businesses there are some crucial aspects to take in account. The majority of these are the accounting methods that are employed to report the income and expenses of businesses. Based on whether the business is a cash or accrual entity, the accounting method can be either. Small business owners often must also make quarterly estimated tax payments. These payments can be made online via the Electronic Federal Tax Payment System or by submitting a form 1040-ES with a tax payment.
Intuit provides multiple service levels for small businesses to help with their tax returns. Those looking for more of a hands-off approach can choose between the online TurboTax Self-Employed plan, or the more involved TurboTax Business application. This option pairs business owners with a tax expert who prepares their tax return from start to finish.
TurboTax Business also helps with the preparation of W-2, 1099MISC and 1040-DIV forms to employees and contractors. It also calculates the estimated tax payments that are typically required by the IRS if you expect to owe more than $1,000 in taxes.
However it can be costly. With a price of $200 for the federal filing and $55 per state, it can quickly increase to. There are numerous advantages, including live support from a professional and an assurance of 100 accuracy of calculations. These extra features can be expensive for small business owners. There are more affordable alternatives to TurboTax.