Tax time is when business owners often look for deductions to help save money. But, preparing for tax season should start at the beginning of the New Year to implement necessary actions to take advantage of credits and deductions during that tax year. Below is a list of Tax Filing Tips and Deadlines business owners should note.
Tax planning is more than just saving receipts and includes working with a tax professional to help business owners understand what deductions they may take. As business owners prepare for tax season, here are a few often overlooked 2022 tax year deductions businesses may qualify for:
Carry forward the health credit
- The healthcare tax credit is offered on a sliding scale to businesses that employ fewer than ten full-time employees with average wages under $25,000 per person. To claim the health credit, use form 8941 to calculate eligibility.
Deduct section 179 property
- Small businesses can deduct the total amount of specific property as expenses in the year they started using them. Section 179 property can include up to $1,080,000 of eligible business property in the 2022 tax year. Some eligible deductions include:
- Property used in manufacturing, transportation, and production
- Any type of facility used for business or research
- Buildings used to hold livestock or horticultural products
- Off-the-shelf computer software
Deduct applicable stock contributions given to charity
- A business can deduct the value of the stock at the time of the gift versus the stock’s purchase value. Donating stock instead of money may provide a more significant deduction since the value of a cash donation remains the same and may not offer a deduction in the tax year given, depending on tax rules. A tax professional can help determine how donating company stock may save the business money at tax time.
Here are important dates for business tax filing for the Tax Year 2022:
February 15, 2023: Deadline for financial institutions to mail out Form 1099-B relating to sales of stock, bonds, or mutual funds through a brokerage account, Form 1099-S relating to real estate transactions; and Form 1099-MISC, unless the sender is reporting payments in boxes 8 or 10.
February 28, 2023: Deadline for businesses to mail Forms 1099 and 1096 to the IRS.
March 1, 2023: Deadline for farmers and fishermen to file individual income tax returns unless they paid the 2022 estimated tax by January 18, 2023.
March 15, 2023: Deadline for corporate tax returns (Forms 1120, 1120-A, and 1120-S) for the tax year 2022 or to request an automatic six-month extension of time to file (Form 7004) for corporations that use the calendar year as their tax year, and for filing partnership tax returns (Form 1065) or to request an automatic six-month extension of time to file (Form 7004).
March 31, 2022: Deadline for businesses to e-file Forms 1099 and 1098 to the IRS, except Form 1099-NEC.
April 18, 2023: Deadline for household employers who paid $2,400 or more in wages in 2022 to file Schedule H for Form 1040.4
April 18, 2023: All individuals must file their 2022 personal tax returns, or Form 1040 or Form 1040-SR, by this date. This is the deadline to request an automatic extension (Form 4868) for six months to file your return and any tax due.
Source- Federal Income Tax Deadlines in 2023, The Balance.
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