Small Business Tax Tips for 2018

Small business and personal taxes are due at different times of the year. Tax day this year – for individuals – is April 17th.

Why? April 15, 2018, falls on a Sunday and District of Columbia Emancipation Day will be observed on Monday, April 16, 2018.

Small Business Tax Calendar

For business? Well, are you a Corporation or LLC? Your business structure determines which taxes you owe and how to pay them.

The major tax overhaul passed in December 2017 is the largest since Ronald Reagan’s presidency.

Under the Tax Cuts and Jobs Act, the Congressional Budget Office predicts:

  • Individuals and pass-through entities like partnerships and S corporations would receive about $1,125 billion in net benefits (i.e. net tax cuts offset by reduced healthcare subsidies) over 10 years.
  • Corporations would receive around $320 billion in benefits,” Congressional Budget Office report.

Tax Credits

Small Business TaxesWe think dollar-for-dollar tax credits are a great way to give back and reduce your tax burden. Because the more you claim, the more of your own money you keep.

Families can also take tax credits for children, adoption, education, dependents, the disabled, etc.

Furthermore, businesses have all new tax rules and incentives to consider this year, too.

Business Tax Resources

We choose the U.S. Small Business Administration, SBA, for some guidance because they have been such a great resource for our business.

The SBA outlines the five general types of business taxes.

  1. Income tax
  2. Self-employment tax
  3. Estimated tax
  4. Employer tax
  5. Excise tax

“Each category of business tax might have special rules, qualifications, or IRS forms you need to file. So check with the IRS to see which business taxes apply to you.”

New to Know

Small businesses should bookmark the IRS’s “Employer’s Tax Guide” here. New changes the IRS wants you to know cover:

  • Federal Income Tax Withholding
    Employers should implement the 2018 withholding tables as soon as possible, but not later than February 15, 2018.
  • Exempt form W-4
    To continue to be exempt from withholding in 2018, an employee must give you a new Form W-4.
  • Withholding allowances are all updated. Be sure to review them.
  • Moving expense reimbursement and The Armed Forces
    Check the definition of what constitutes a permanent change of station and learn which moving expenses are deductible.

Write-Offs to Avoid also lists tax-deduction changes you need to know:

  • Small business cannot deduct entertainment. Fortunately, small business can still deduct meals.
    “The biggest change in deducting automobiles is an increased deduction for car depreciation for cars used for business. This change will most likely result in more business owners buying cars versus leasing.”
  • And what about education? Can small business write-off it the books? advises most seminars for the general public are not deductible. On the other hand, a seminar increasing knowledge and improving business may be considered continuing education and be deductible.

The Bottom Line

The new law is meant to help businesses keep more of their own hard-earned dollars and spur innovation. Don’t go it alone.

We highly recommend turning to a tax expert to navigate tax law.




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