Tax Filing 2022: What You Need to Know!
Tax Filing 2022
Do not leave the tax return filing for the last moment. You’ll stress out and make errors in tax filings. It may get you an IRS audit or penalties.
If you haven’t already, it’s time to create a complete plan to file your business taxes right now.
What Do You Need to Know for Your Tax Filing 2022?
So, where do you begin and what do you need to file your business taxes for 2022. For seasoned businesses, nothing changes much except for their inflation adjustments for the tax rates and deductions.
Here are our tips on what you need to know for your tax filing 2022.
Know Your Tax Filing Deadlines
First thing first, you need to remember the tax filing deadlines. Regularly use the online tax calendar to avoid any late filing penalties.
April 15, 2022, is your tax filing deadline if your business type is a C corporation. For many small businesses, the tax filing deadline is April 15 every year unless the IRS provides an extension due to extraordinary circumstances.
Similarly, for partnerships and S corporations, the deadline is March 15. You’ll also need to remember the estimated tax filing dates.
Types of Business Taxes
All businesses do not need to pay every type of business tax. However, it is important to know the business tax types. You can plan accordingly and manage the taxes in time.
There are 5 types of business taxes that you may need to file.
- Income tax on your business income
- Estimated taxes are quarterly taxes for some businesses that have to pay more than $ 1,000 income tax annually.
- Self-Employment taxes for sole proprietors and freelancers.
- Employment taxes are for social and medical care for the employees of the company.
- Excise taxes that are charged on some goods or services for selected businesses.
Gather Your Tax Forms – Know Which One to Use
Knowing which tax forms you’ll need for different types of tax filings is important. You’ll need to use the right tax form for specific purposes.
Some of the commonly used tax forms are listed here.
- Form 1120: It is used to report income for C Corporations.
- From 1120 S for filing income tax returns for S corporation.
- Schedule C is used to file income tax returns for sole proprietors.
- Form 1099-MISC is used for freelancers or self-employed persons.
- Form 1065 is used for the income tax return filing for partnerships.
Similarly, you must know the correct forms for certain tax deductions and credits.
Complete Your Accounting Records
Knowing what you can deduct as a business expense is important. It is also important to back your claims with proof. Keep and gather your expense records.
Similarly, you must collect all your income invoices. Gather payroll bills and other expenses incurred during the year. You should carefully evaluate your combined personal and business expenses as well before tax filing.
Completing your accounting records will help you file taxes correctly. It means you can avoid any tax delays, penalties, and additional tax costs.
Evaluate Your Tax Deductions and Credits
You can deduct business expenses for operating and capital categories when tax filing. All ordinary business expenses are tax-deductible for your business.
Capital expenses include startup costs, asset purchases, and other capital investments. Similarly, common business deductions include rent, salaries, utilities, mileage, insurance, and taxes.
You should also search for relevant tax credits. Certain businesses are eligible for specific tax credits.
Recheck Your Estimated Taxes
If your estimated income taxes are above $ 1,000 for the current year, you’ll need to make estimated tax payments to the IRS. You can use professional estimates and historic tax returns as guidance to evaluate whether you need to file for estimated taxes.
Most businesses need to file for estimated taxes though. At this moment, you can calculate any remaining estimated taxes for the previous three quarters.
Seek Professional Help – Extension
Consulting a professional tax preparer can help you save money and time. You can get professional advice that can lower your total tax bill. It can also save you from IRS audit and tax penalties.