There are several important things to consider when preparing tax returns. Most of these are accounting methods used to report business income and expenses. Depending on the type incorporated entity, this could be either the accrual or cash method. Small business owners often must also make a quarterly estimated tax payment. These payments can be made through the Electronic Federal Tax Payment System, or by submitting 1040-ES forms that include a tax payment.
Intuit offers multiple levels of service to help small-sized businesses with their tax returns. If you prefer an approach that is more hands-off, they can go with the online TurboTax package or the more involved TurboTax Business software. This option combines business owners with a specialized tax professional who will prepare their tax return from beginning to end.
TurboTax Business also helps with the preparation of W-2, 1099-MISC and 1040-DIV forms for employees as well as contractors. It also calculates the estimated tax payment required by the IRS when you expect to owe more than $1,000 in taxes.
The program can be costly The program can be costly, however. With a cost of $200 for the federal filing and $55 for each state, it’s easy to increase to. There are several perks that include unlimited live assistance from an expert and an unbeatable accuracy calculation guarantee. These extra features can be costly for small business owners. There are alternatives that are less expensive than TurboTax.