What’s a Tax Return, and Key Takeaways

A tax return is a form used to report income, expenses, and associated taxes to the Internal Revenue Service (IRS). Tax returns are a requirement for most individuals and organizations, including corporations, partnerships, sole proprietorships, and trusts. However, the specific forms and due dates will vary. By filing them annually or quarterly, you can schedule tax payments or request a refund if you overpaid. It’s worth noting that the IRS will closely review each submission, so all of the information provided must be accurate.

Here are some key takeaways from filing a tax return:

• Filing Taxes is a Requirement: Adhering to federal tax laws is essential. Failing to do so can result in penalties and fines.
• File on Time: Meeting deadlines can help avoid complications when submitting taxes.
• Accuracy is also Crucial: While you may be able to report some errors or omissions after filing, it’d be better to avoid them in the first place.
• Stay Informed: Tax laws and rules are subject to change, so you should stay up-to-date with the latest information.
• Take Advantage of Tax Credits and Deductions: You can take advantage of various deductions and credits when filing taxes, saving you money.
• Taxes are Complex, so Get Professional Guidance: If you’re having trouble completing your taxes or understanding how the process works, it’s best to get professional assistance from a tax expert.

Discussing Tax Returns – Type of Forms You Should Know

Your business structure is the main factor determining the form you’ll need to file. Knowing the various forms can help you gather the necessary information and estimate your tax liability better.

Income Tax Forms

Partnerships, sole proprietorships, and LLCs filing as sole owners or jointly use the same forms as individuals (Form 1040 and Schedule C). These entities are considered “pass-through,” meaning the company’s income is passed to its owners and reported on their tax returns. On the other hand, corporations must file their taxes with the IRS using either Form 1120 or 1120S.

Forms for Estimated Taxes

When you expect to owe more than $1,000 in taxes for the year, you must make estimated payments; this applies to sole proprietorships, LLCs, or partnerships. You can use Form 1040-ES to calculate and pay these taxes quarterly. Corporations must also file quarterly using Form 1120-W if they could be due more than $500 for the year.

Self-Employment Tax Forms

If you’re self-employed, the IRS requires you to pay self-employment taxes (Social Security and Medicare) on your earnings. To calculate the amount, use Schedule SE and report it on your 1040.

Forms for Employment Taxes

Any business with employees must pay employment taxes regardless of its structure. Forms 940 (Federal Unemployment Tax), 941 (Employment Taxes), and 943 (Agricultural Employment Tax) are essential for this purpose. In addition, send Form W-2 (for all salaried employees) and Form 1099-NEC (for non-employees who earned $600 or more) to report wages and other payments.

Excise Tax Forms

The excise tax applies to certain goods and services, from alcohol to fuel. Depending on your business activities, you may need to file Form 720 (quarterly) or Form 2290 (annually).

The Sections of the Tax Return: Income, Deductions, Tax Credits

When filing a tax return, the IRS expects you to specify your income, available deductions, and applicable credits.

Income

In the income section, you list all the money your business has earned throughout the year. It includes gross receipts, wages, investments, and any other source of revenue. Remember that gross and taxable income differ, as the latter may be lower than your total earnings after subtracting deductions.

Deductions

Deductions are expenses that reduce your company’s taxable income. Common deductions include advertising costs, employee wages, mortgage interest, rent payments, charitable contributions, office supplies, etc. You can either itemize deductions or take the standard deduction (if eligible).

Tax Credits

The IRS offers these tax incentives to encourage businesses to invest money and resources in specific activities. Unlike deductions, credits reduce the amount of taxes owed (not just taxable income). The Research and Development Tax Credit, Work Opportunity Tax Credit, Disabled Access Tax Credit, and many others are available.

How Do Tax Returns Work?

Filing taxes starts by gathering information about your business activities throughout the year. To make the process easier, you need an organized system to track your income, expenses, etc. Once you have the data ready and it’s time to file, the next step is to obtain the necessary forms – you can find these on the IRS website. Fill out the forms with your information, double-check everything for accuracy, and submit the tax return by mail or electronically. Always remember to pay the taxes owed before the deadline.

You may have to wait several weeks (or months) to get a response from the IRS about your refund or additional taxes due. If you disagree with the notice, you can dispute it and request a review. Otherwise, there’s no need to take action. Keeping copies of any documents related to your tax return is important, as these may be useful for future reference.

How Nesso Tax Can Help with Your Business Tax Returns

At Nesso Tax, we understand the complexity of filing taxes and all these forms. As a business owner, you have enough to worry about, and the last thing you need is to use up all your time preparing tax returns. Our experienced tax planners in Plantsville offer comprehensive services, including filing the correct forms, finding deductions and credits that apply to your business, calculating estimated payments, and helping you comply with IRS regulations. Here’s what you can expect from Nesso Tax:

Business Tax Strategy

We don’t believe in making tax decisions without considering your long-term goals and objectives. Instead, we work closely with you to create a comprehensive tax strategy tailored to your business. Our team provides customized solutions that minimize taxes and maximize savings year-round.

Business Monthly Bookkeeping

Maintaining accurate financial records is essential for business success. We offer monthly bookkeeping services to guarantee your books are up-to-date and organized. We’ll handle everything from tracking expenses to reconciling bank statements.

Payroll Processing & Reporting

Complying with federal and state payroll regulations requires much time and effort. Our team will handle all the paperwork so you don’t have to worry about it – including calculating employee paychecks, preparing taxes, reporting wages to the IRS, issuing 1099s/W2s, and more.

Business Tax Return Preparation

Our tax experts will prepare your return accurately and on time. We’ll review your documents, calculate deductions and credits, and electronically file the return on your behalf.

Quarterly Estimated Tax Preparation

Not sure how much to pay in estimated taxes? We can help you calculate your quarterly taxes and ensure they’re paid on time. We’ll provide an easy-to-use system to track your payments and remind you of upcoming deadlines.

Tax Professionals in Plantsville

Our certified tax professionals know the latest laws, regulations, and filing requirements. With access to our team, you can benefit from their expertise and gain confidence that your taxes are in the best hands.

Sales Tax Reporting

Some states require businesses to report their sales tax. To make the process easier, we can help you determine how much is due and handle all the paperwork.

Business Advisory Services

We offer additional advisory services so that you can make informed decisions. We’ll assist with budgeting, cash flow management, strategic planning, financial projections, and more.

Why Choose the Nesso Group? Our Long-Term Vision and Holistic Approach

Good tax planning requires a long-term vision that looks at the bigger picture. As part of the Nesso Group, we’re committed to building lasting relationships with our clients. We don’t just complete their tax returns. We also advise them on how to avoid costly mistakes and provide long-term planning advice for a successful future.

On the other hand, we know that taxes are just one part of your business’s operations. You can achieve maximum benefit only when all components are working in unison. Therefore, we take a holistic approach to our services and offer assistance in payroll, bookkeeping, business strategy, and other areas. At the Nesso Group, you get an ecosystem of financial services under one roof.

Business Tax Services in Plantsville that Will Take Your Business to the Next Level

At Nesso Tax, our primary goal is to help you maximize your business profitability and longevity. We offer comprehensive tax services in Plantsville tailored to meet your needs. Whether it’s completing your tax return, strategizing for growth, or reducing risk, we’re here to provide sound guidance. We prioritize your satisfaction, and our team is committed to exceeding your expectations. Contact us today to get started.