Unless you’re an accountant or a CPA, tax season is the worst season. It’s that time of year when business owners have to hand over their hard-earned dollars to the government. One of the hardest parts is simply figuring out how much you owe and understanding the IRS form instructions. But, hopefully at the end of the month, you’ll be rewarded by a big tax return for growing and running a successful small business.
To make tax season a little less painful, enjoy these GIFs that speak to the trials and tribulations of filing your tax return.
There are so. many. tax forms. Depending on where your business is located and the type of entity you are, there are different forms you will need to file. Here’s a quick guide to help you out:
- Sole proprietors and single-member LLCs: Schedule C, part of your regular Form 1040.
- Partnerships and multi-member LLCs: Form 1065 and each partner needs to fill out a Schedule K-1 form.
- S-Corporations: Form 1120 S and a Schedule K-1 form.
The 1040EZ has 33 pages of instructions. Try using a tax software instead to make it easier to claim your expenses and deductions. The Clover App Market can help make tax time easier by syncing with your tax software and automatically applying tax rates to each transaction.
This year, the Tax Cuts and Jobs Act will have an impact on your tax return. There are some itemized job expenses that have been repealed for the 2018 tax year, including the unreimbursed job expenses deduction. There are other deductions that you can still take advantage of, including tax preparation fees and volunteer work donations. Check out this list from Entrepreneur for some possible tax deductions you may be able to claim.
What’s a 1099, you ask? According to Quickbooks, “if you employ contractors and paid them more than $600 in business-related payments, then you will need to prepare and issue an IRS Form 1099-MISC.” You guessed it: if you don’t send out the 1099s, there is a penalty.
Of course, some small merchants put that money right back into their business. But congratulations: you made it through another tax season and another year of successful operations! Take some time to treat yourself to something special. You’ve earned it.
To learn more about Clover, visit www.clover.com.