As we are getting ready for the New Year, there is one thing small business owners should be thinking about: Taxes. You might be overwhelmed by the idea of doing your taxes and you may even find yourself putting them off until the last moment, but they are still going to need to be taken care of. Staying organized and knowing the dates for when items are due can help ease the stress and headaches of making sure you have turned everything in on time and correctly. Rocket Lawyer is here to help make sure you are on the right track by providing this guide with upcoming due dates and what needs to be turned in.
Here are a few important dates that you’ll want to mark on your calendar:
Final estimated taxes for 2017 are due. Taxes must be paid as you earn or receive income throughout the year. This can be done through estimated tax payments. If you have a business, you generally need to make estimated tax payments. An estimated tax is a method used to pay tax on income that is not subject to withholding, such as, self-employment, interest, dividends, alimony, etc.
Who must pay estimated tax?
- Individuals, sole proprietors, partners, and S-corporation shareholders, if they are expecting to owe tax of $1,000 or more when the return is filed.
- C-corporations, if they expect to owe tax of $500 or more when the return is filed.
To determine what your estimated tax amount is going to be for your business, you will want to work through Form 1120-W.
*If you don’t pay enough tax through estimated tax payments, you may be charged a penalty. You can also be charged a penalty if your estimated tax payments are late regardless if you are due a refund when you file your tax return.
*If, as a business, you have paid anyone (other than a corporation) over $600, you will need to send them a 1099 form.
March 15th (new)
If you have a business that runs or is taxed as an S-Corporation or Partnership, the deadline for tax filings has changed from April 15th to March 15th.
April 17th (new)
If your business runs or is taxed as a sole proprietorship, single-member LLC or C-Corporation, the tax deadline is April 17. Since our traditional Tax Day, April 15th, falls on a Sunday and is followed by a local holiday in Washington DC, you’ll have two extra days to file this year.
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Additional Changes for the 2017 Tax Year
There are two changes to tax deductions for 2017 business tax filings, which will increase Section 179 deductions on purchases of business assets and increase bonus depreciation on purchases of new equipment. These changes are just for filing for 2017 taxes and are not part of the 2018 changes happening with the new tax law.
Section 179 Deduction Section 179 maximum deduction will be set at the $510,000, which will allow businesses to plan for asset and expense purchases immediately.
Bonus Depreciation has been reinstated through 2019. Businesses of all sizes will be able to depreciate 50 percent of the cost of equipment acquired and put into service during 2015, 2016 and 2017. Bonus depreciation will then phase down to 40 percent for 2018 and 30 percent for 2019.
Rocket Lawyer is here to help. If you have questions regarding tax season, you can ask a Lawyer.
This article contains general legal information and does not contain legal advice. Rocket Lawyer is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.