If you’re a small business owner in California, you know what every small business owner knows– that you have to do taxes. Taxes certainly aren’t fun, but they don’t have to be so hard. It may seem daunting, especially if you’re a new small business, but preparation and filing are more simple than you might think. Here’s what you need to know about 2021 small business taxes.
How Do I File Taxes For My Small Business?
If you want to file taxes for your business yourself, there are some general steps you need to cover. When preparing your taxes, you’ll have to review your business’ tax credits, records, employment taxes, and any expenses you may be able to deduct. It is also important to be aware of tax deadlines.
There are actually various types of business taxes: income tax, estimated taxes, self-employment tax, employment taxes, and excise tax. And, the form of business you operate determines what taxes you have to pay and how you pay them.
As for where to file, there are a couple of options. You can file taxes online or by -mail. The IRS has a resource that provides an address to send your taxes to (depending on what state you’re filing for and which form you are filing). The IRS’ small business tax workshop may be a helpful tool for you in learning how to file taxes for your business.
There is also the option to use experts that offer tax services to ensure you file correctly. This is often more preferred as it is easier, takes away worry, and saves you time.
Are there any tax changes for 2021?
The most recent change to tax season was that the filing deadline for payments and returns was extended until May 17, 2021. Income tax brackets also increased in 2020 to account for inflation. The amount for standard deductions also increased.
Can I File My 2020 Taxes In 2021?
The 2020 tax filing and payment are due date is May 17, 2021. If you pay later than the deadlines, there is a late penalty/fee.
Will The Stimulus Check Affect My 2021 Tax Return?
The government implemented quite a bit of financial help during 2020 as a result of COVID including a COVID relief bill. This specifically was for assisting small businesses with things like the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loans. Last but not least, unemployment and stimulus checks provided indirect relief by boosting the buying power of consumers and help in keeping them healthy while preparing the economy to open back up.
If you received any stimulus, it won’t be taxed. However, if you did not get a stimulus check and should have, that could affect your tax return– you could receive credit.
Call Us Today
ASCEND Business Advisory offers Tax Solutions to small and medium-sized businesses. At ASCEND we offer expert tax advice and consulting for innovative companies. We help with income taxes, multistate reporting, sales & use taxes, local business property tax, payroll, and international reporting.
Call us today at 888-297-3321 for a free consultation if you’d like help on your 2021 small business taxes.