Page 109 - Small Business Taxes

16:31 - 2-Feb-2023
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Fileid: … tions/p535/2022/a/xml/cycle01/source
The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
Tax previously determined for unique to seniors. Go to IRS.gov/TCE,
download the free IRS2Go app, or call
$ 1,604
2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . − 1,004 12. 888-227-7669 for information on free tax
Less: Tax as refigured . . . . . . . . . . . return preparation.
Decrease in 2021 tax . . . . . . . . . . . . $600 • MilTax. Members of the U.S. Armed
Regular tax liability for 2022 . . . . . . . $6,606 Forces and qualified veterans may use Mil-
Less: Decrease in 2021 tax . . . . . . . − 600 How To Get Tax Tax, a free tax service offered by the De-
Refigured tax for 2022 . . . . . . . $6,006 partment of Defense through Military One-
Source. For more information, go to
Help MilitaryOneSource (MilitaryOneSource.mil/
Because you pay less tax under Method 1, you MilTax).
should take a deduction for the repayment in
2022. If you have questions about a tax issue; need Also, the IRS offers Free Fillable Forms,
help preparing your tax return; or want to down-
Repayment does not apply. This discus- load free publications, forms, or instructions, go which can be completed online and then filed
electronically regardless of income.
sion doesn’t apply to the following. to IRS.gov to find resources that can help you
• Deductions for bad debts. right away. Employers can register to use Business
• Deductions from sales to customers, such Services Online. The Social Security Adminis-
as returns and allowances, and similar TTY/TDD and Federal Relay Service. People tration (SSA) offers online service at SSA.gov/
items. who are deaf, hard of hearing, or have a speech Employer for fast, free, and secure online W-2
• Deductions for legal and other expenses of disability and who have access to TTY/TDD filing options to certified public accountants
contesting the repayment. equipment can call toll free 800-829-4059 to (CPAs), accountants, enrolled agents, and indi-
Year of deduction (or credit). If you use ask tax questions or to order forms and publica- viduals who process Forms W-2, Wage and
tions. Deaf or hard of hearing customers may
the cash method of accounting, you can take call any of our toll-free numbers using their Tax Statement, and Forms W-2c, Corrected
the deduction (or credit, if applicable) for the tax choice of relay service. Wage and Tax Statement.
year in which you actually make the repayment. Tax reform. Tax reform legislation affects indi-
If you use any other accounting method, you Coronavirus. Go to IRS.gov/Coronavirus for viduals, businesses, and tax-exempt and gov-
can deduct the repayment or claim a credit for it links to information on the impact of the corona- ernment entities. Go to IRS.gov/TaxReform for
only for the tax year in which it is a proper de- virus, as well as tax relief available for individu- information and updates on how this legislation
duction under your accounting method. For ex- als and families, small and large businesses, affects your taxes.
ample, if you use the accrual method, you are and tax-exempt organizations.
entitled to the deduction or credit in the tax year A–Z index for business. Find it fast! Know
in which the obligation for the repayment ac- Preparing and filing your tax return. After what you're looking for and want to find it fast?
crues. receiving all your wage and earning statements Select business topics using our A–Z listing, or
(Forms W-2, W-2G, 1099-R, 1099-MISC, by business type such as sole proprietor, cor-
Supplies and materials. Unless you have de- 1099-NEC, etc.); unemployment compensation poration, etc. We also provide links to major
ducted the cost in any earlier year, you can gen- statements (by mail or in a digital format) or business subjects, such as Business Expenses,
erally deduct the cost of materials and supplies other government payment statements (Form which provide a gateway to all related informa-
actually consumed and used during the tax 1099-G); and interest, dividend, and retirement tion on those subjects.
year. statements from banks and investment firms • Small Business Forms and Publications.
If you keep incidental materials and supplies (Forms 1099), you have several options to You can download forms and publications
on hand, you can deduct the cost of the inci- choose from to prepare and file your tax return. for small businesses and self-employed in-
dental materials and supplies you bought during You can prepare the tax return yourself, see if dividuals.
the tax year if all the following requirements are you qualify for free tax preparation, or hire a tax • Employer ID Numbers (EINs). Find out
met. professional to prepare your return. about EINs or apply for one online.
• You don’t keep a record of when they are • e-File Form 940, 941, 944, or 945 for Small
used. Free options for tax preparation. Go to Businesses. Learn your options for e-filing
• You don’t take an inventory of the amount IRS.gov to see your options for preparing and Form 940, 941, 944, or 945 for small busi-
on hand at the beginning and end of the filing your return online or in your local commun- nesses.
tax year. ity, if you qualify, which include the following. • Employment Taxes. Federal income tax,
• This method doesn’t distort your income. • Free File. This program lets you prepare social security and Medicare taxes, FUTA
You can also deduct the cost of books, pro- and file your federal individual income tax tax, self-employment tax, and more.
fessional instruments, equipment, etc., if you return for free using brand-name tax-prep- • Independent Contractor (Self-Employed)
normally use them within a year. However, if the aration-and-filing software or Free File filla- or Employee. It is critical that you, the em-
usefulness of these items extends substantially ble forms. However, state tax preparation ployer, correctly determine whether the in-
beyond the year they are placed in service, you may not be available through Free File. Go dividuals providing services are employees
must generally recover their costs through de- to IRS.gov/FreeFile to see if you qualify for or independent contractors.
preciation. For more information regarding de- free online federal tax preparation, e-filing, • Self-Employed Individuals Tax Center. The
preciation, see Pub. 946. and direct deposit or payment options. basics on self-employment, filing require-
• VITA. The Volunteer Income Tax Assis- ments, and reporting responsibilities for in-
Utilities. Business expenses for heat, lights, tance (VITA) program offers free tax help dependent contractors.
power, telephone service, and water and sew- to people with low-to-moderate incomes, • Information Return Filing Requirements. If
erage are deductible. However, any part due to persons with disabilities, and limited-Eng- you made or received a payment as a
personal use isn’t deductible. lish-speaking taxpayers who need help small business or self-employed individual,
Telephone. You can’t deduct the cost of preparing their own tax returns. Go to you are most likely required to file an infor-
IRS.gov/VITA, download the free IRS2Go
mation return with the IRS.
basic local telephone service (including any app, or call 800-906-9887 for information • IRS Video Portal. Videos, webinars, and
taxes) for the first telephone line you have in on free tax return preparation. audio presentations for small businesses,
your home, even if you have an office in your • TCE. The Tax Counseling for the Elderly individuals, and tax pros.
home. However, charges for business long-dis- (TCE) program offers free tax help for all • Small Business Events. Workshops and
tance phone calls on that line, as well as the taxpayers, particularly those who are 60 webinars on a variety of topics for small
cost of a second line into your home used ex- years of age and older. TCE volunteers businesses.
clusively for business, are deductible business specialize in answering questions about • Online Tools & Educational Products.
expenses. pensions and retirement-related issues Choose from a variety of products,
Page 50 Chapter 12 How To Get Tax Help