Tag Archive for: filing taxes

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Filing Your Schedule C: A Simple Guide

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Are you a small business owner? If so, you may be looking for advice on filing your Schedule C. The IRS Schedule C is used by sole proprietors and single-owner LLCs to report your small business taxes and is part of your personal tax return.

We understand that business taxes can seem confusing, if not overwhelming. That’s why we’re here to help you with filing your Schedule C so you can stay in compliance and get back to business.

Is it Worth Filing a Schedule C?

As with other details surrounding your small business taxes, it’s unfortunately not a question of whether it’s “worth” filing your Schedule C. Schedule C is required for the following business types:

  • Single-owner LLC
  • Sole proprietor

The only other business type that might need Schedule C is when two married people organize a special type of partnership known as a Qualified Joint Venture. In this instance, the couple will use two Schedule C forms when filing small business taxes.

Using a Schedule C doesn’t exempt you from paying your quarterly estimated business taxes, of course. You’ll still need to make these regular estimated payments to avoid any penalties and fees when it comes time to file your return. 

Your Schedule C will help determine your actual tax debt for the year, and you can then see how it compares with your quarterly estimates.

Can I File a Schedule C By Itself?

By itself, a Schedule C will not count as an acceptable tax filing form. Instead, a Schedule C must be submitted along with your personal income taxes using Form 1040. Your Schedule C can be submitted electronically with your personal income tax or stapled to your paper form.

To understand this better, consider the way that small business taxes are typically handled. Sole proprietorships and single-owner LLCs are legally considered pass-through entities. 

This designation means that your business is not considered to be a taxable entity by itself. Instead, the profits from your business go directly to you, the owner. This passthrough means that you’ll report business income when you file your personal tax returns each year.

Your Schedule C, therefore, contains detailed information about your company’s financial performance for the relevant tax year, including:

  • Income
  • Expenses
  • Cost of goods/supplies

 This information will be used to calculate a net profit or loss, which will be recorded on Form 1040. Keep in mind that there is no minimum income requirement. All sole proprietors and single-owner LLCs will have to file Schedule C each tax year.

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What Do I Need to File a Schedule C?

Filing your Schedule C isn’t complicated, though you’ll need some time to complete the details, as well as the information necessary to complete the forms properly. You can expect to need the following pieces of business data for your Schedule C:

  • Your business income statement for the tax year
  • Your company’s balance sheet for the tax year
  • Receipts for any and all business expenses
  • Inventory records (if applicable)
  • Mileage records

If you operate more than one business, you’ll need a separate Schedule C for each one. This setup isn’t terribly common, of course, but if you receive income from multiple side hustles, you’ll have to report for each using its own Schedule C.

How Do I Submit a Schedule C?

Ultimately, you’ll use Schedule C to calculate your net profit or loss for the year. Your net business profit will then be recorded on Form 1040 as personal income. Calculating these figures isn’t challenging, but it can be a bit intimidating if you’re not used to doing your own business tax preparation. We’ll walk you through each step.

Step One: Gather Information About Your Business

Start by gathering as much information as you can about your business. This step is all about data. You’ll want to have records about items such as:


  • Your business income for that tax year
  • Cost of goods sold
  • Any business expenses

Remember, you can calculate business expenses the same way you always would, including items such as office supplies, mileage, utilities, meals, and others. 

You won’t have to show supporting documentation when filing your Schedule C, though anytime you’re dealing with the IRS, you’ll want to make sure to have receipts, business documents, and any other paperwork to authenticate your earnings and expenses for the relevant tax year.

Step Two: Calculate Your Gross Profit and Income

Now that you have your information gathered, you can start filling out your Schedule C. Under section I, you’ll report your sales and the cost of goods sold. Your expenses can be reported under section II. 

But here, you’ll also calculate your gross profit from your business. To calculate your gross profit, you’ll first need to determine your net receipts. You can accomplish this through the following calculations:

  • Gross sales – returns and allowances = net receipts
  • Net receipts – the cost of goods sold = gross profit

Once you have your gross profit, you can simply add it to any other income you’ve received to calculate your total gross income.

Step Three: Deduct Your Business Expenses

Check your form, and you’ll see that deductible business expenses are listed on lines 8 through 27. These lines account for expenses such as:

  • Depletion
  • Depreciation
  • Section 179 expenses
  • Employee benefits
  • Insurance
  • Interest
  • Legal and professional fees
  • Office expenses
  • Meals
  • Rental of vehicles or equipment
  • Travel expenses
  • Office supplies and furniture
  • Utilities
  • Wages and employment costs (e.g., benefits, unemployment insurance)

The more deductions you take, the greater your profits will be. But before you start taking deductions, be aware that there may be some stipulations associated with certain categories or expenses. If you’re ever in doubt, ask a tax professional.

Step Four: Deduct Your Home Office

Many small business owners work from home. If that applies to you, you’ll have two options for reporting the expense associated with your home office.

Option A allows you to take a deduction based on the total square footage of your home. 

Using Form 8829, you’ll take the total area of your home, then determine the percentage occupied by your home office. So if your home is 1,000 square feet, and your office is 100 square feet, it occupies 10% of your home. This percentage can be included on line 30 of Schedule C.

Option B is simpler, allowing you to take a standard deduction on home business space up to 300 square feet. 

The IRS allows you to take a $5 deduction per square foot on this space, to a maximum of $1500. This amount will also be reported on line 30 of Schedule C, and there is no separate form to fill out.

Just remember that to take this deduction, your home office space must be devoted to the regular and exclusive use of your business; otherwise, you cannot legally qualify for this deduction.

Step Five: Provide Other Details About Your Deductions

After this, you’ll complete parts IV and V of Schedule C. These are primarily information sections. Part IV asks for information about your vehicle relating to driving frequency, mileage, etc.

Part V will allow you to provide any additional details about other expenses you may be deducting. The total will be recorded on line 27 of Schedule C.

Step Six: Calculate Your Net Profit

You’re now ready to calculate your net income. To do this, simply follow the following steps:

  • Enter your total expenses on Line 28
  • Subtract Line 28 from Line 7. This total will give you your tentative profit on Line 29
  • Subtract business expenses from your home (Line 30) to get net profit (Line 31)

Profit will be reported as personal income, but a business loss must be accounted for on lines 32a and 32b to determine your risk.

Step Seven: Add Schedule C to Form 1040

The net profit/loss from line 31 of Schedule C can now be recorded on Schedule 1, line 12 of Form 1040. You’ll then file Schedule C along with Form 1040 (and any other tax paperwork) when you file your personal income taxes.

Is a Schedule C the Same as a 1099?

A Schedule C is a very different form from a 1099. Form 1099 is used to indicate that a company has paid an employee as a contractor or independent employee. So if you employed these individuals during your tax year, you’ll be responsible for filling out Form 1099s and distributing them to these contractors.

However, Form 1099 may be necessary to fill out Schedule C. Any money you spent on employees would be classified as a business expense, and therefore should be included when filing your Schedule C.

Specifically, part II of your Schedule C will provide space for you to record business expenses, which would include any money you paid to contract employees in the past tax year.

Skip the Headache: Let the Experts Handle Your Schedule C

Filing your Schedule C isn’t difficult, but the easiest thing of all is to turn to professional tax services for all of your tax planning and preparation. Xendoo offers tax preparation for small business so that you can stay focused on your company and not on your tax obligations.

To learn more, simply click here to get started. Our free trial can show you how Xendoo’s innovative features can take the stress out of your tax preparation.


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Do You Need to File Personal and Business Taxes Separately?

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As a business owner, how do you go about filing personal and business taxes with the IRS? The answer to this question actually depends on the way your business is structured, so there’s not a one-size-fits-all approach to filing small business taxes.

But that doesn’t mean that tax season needs to cause you stress. We’ve prepared this helpful guide explaining tax preparation for small business owners in the hope that it will help you learn to meet the requirements of both your personal and business taxes.

Are Business Taxes and Personal Taxes Filed Together?

When your business earns money, you’ll have to submit a tax return to the IRS for the income you receive. But does that mean you’ll be filing personal and business taxes together? That depends entirely on the structure of your business.

For example, many small businesses are set up as pass-through entities. This setup means that any income the business earns is passed directly to the business owner. Such pass-through means that rather than filing separate tax returns, you’ll simply pay the tax on your business income via your personal tax return.

Sole Proprietorships and Single-Owner LLCs

Some of the most common pass-through entities include sole proprietorships and single-owner LLCs (see below for other types of LLCs).

The IRS does not consider these business types to be separate tax-paying entities. That means you can simply submit your personal tax return (Form 1040) along with any related schedules or documents, showing income that came from your business and was passed on to you personally.

Some businesses may be asked to file information returns, which simply detail your business earnings to the IRS. You’re not subject to any separate taxation on this income; information returns simply function to report your income to the IRS in an effort to be thorough. Ask a tax advisor if your business needs to file one of these documents.


In a partnership, each partner will pay tax based on business income on their personal tax return (Form 1040). 

Partnerships, therefore, follow the following process:

  • Partnerships report income and deductions to the IRS using Form 1065
  • Partnerships distribute a K-1 to each partner indicating their portion of the profits
  • Each partner will include the data from the K-1 on their personal tax return

This approach means that partnerships will also not file personal and business taxes separately, though you’ll still need to file Form 1065 with the IRS. 

S Corporations

S corporations are also considered pass-through entities, which also means you won’t be filing a separate business tax return.

However, S corporations work a bit differently than the examples we listed above. For one thing, S corporations pay taxes through their owners, more commonly known as shareholders. The process will therefore look something like this: 

  • S corporations file information return Form 1120-S to report their income
  • Shareholders receive form K-1 to show their portion of the company’s profits
  • Shareholders report data from the K-1 on Form 1040 Schedule E

Additionally, if any shareholders participate in managerial decisions, the IRS may classify them as employees. If so, you’ll have to ensure that these shareholders receive Form W-2 in addition to their K-1 and pay taxes on both sets of earnings.

C Corporations

C corporations are the one business type that must file separate business tax returns. The IRS considers these companies separate tax-paying entities, and if you operate a C corporation, you’ll report your company’s income to the IRS using Form 1120.

If any shareholders receive dividends, then the C corporation must distribute Form 1099-DIVs so that shareholders can report this income on their personal taxes.

How do you Separate Business and Personal Taxes?

If you operate a sole proprietorship, it can be especially difficult to keep your personal and business taxes separate. The best way is to maintain detailed, accurate books throughout your fiscal year so you have an accurate understanding of what your business earns.

Many business owners take active steps to keep their personal and business finances completely separate. Opening up a business bank account, for example, can make it easier to distinguish between personal and company funds, plus it will shield you from personal liability if your business ever goes under.

Are LLC and Personal Taxes Separate?

While individual states recognize limited liability companies (LLCs), the federal government does not. This distinction means that when filing personal and business taxes, your LLC will have to be taxed in the same way as one of the other major business entities:

  • Sole proprietorship
  • Partnership
  • S corporation
  • C corporation

For instance, some LLCs are classified as single-owner LLCs. This designation means that the owner will be taxed in the same way as a sole proprietorship and only be required to submit a personal tax return.

If your LLC has more than one owner, your business is automatically taxed as a partnership. This classification also means that the business will not pay taxes, but each partner will include business income on their individual tax return.

An LLC can also be taxed as an S corporation, which means you’ll have to fulfill your obligations to any shareholders you have.

However, an LLC can also be taxed as a C corporation. When this happens, you will have to file a separate business tax return for your company using Form 1120.

In other words, you can only file separate LLC taxes if your LLC meets the criteria to be taxed as a C corporation. In all other circumstances, you’ll simply file your LLC taxes as part of your personal income.

Are Personal and Business Taxes the Same?

As long as your business meets the criteria of a pass-through entity, your business income and personal income are considered to be the same. Granted, some business owners may have additional income apart from their business, but any profit from their business is classified as personal income unless they are set up as a C corporation.

Therefore, instead of filing personal and business taxes separately, most business owners will simply report business earnings on their individual tax forms.

That also means that your business will be taxed on the same basis as your personal income. The IRS does not impose a different tax percentage or tax bracket for business income vs. personal income. All of your income will be treated equally and be taxed at whatever tax bracket you fall into.

Can I File My LLC and Personal Taxes Together?

If you operate an LLC, your small business taxes will depend on how your company is recognized by the IRS. At the federal level, LLCs are not recognized. Therefore, you’ll have to pay taxes the same way you would a sole proprietorship, partnership, or C corporation.

To be clear, this means that you’ll nearly always file an individual tax return, with no separate tax return for income from your LLC. Single-owner LLCs will simply file their taxes in the same way as a sole proprietorship, reporting business income using Form 1040.

LLCs with multiple owners will be taxed in the same way as partnerships and have to report income to the IRS using Form 1065. Each partner will receive a K-1 detailing their portion of the profits. While the IRS receives the notification of the profits, the LLC will not pay taxes separate from the personal tax returns of each partner.

LLCs taxed as S corporations will likewise submit Form 1120 to the IRS and distribute K-1s to their shareholders, who will report income on their personal tax returns.

The only instance in which an LLC will file a separate tax return is when they are set up as a C corporation, which is treated as a separate taxable entity by the IRS. This designation means that your business will have to file Form 1120 with the IRS and file a separate business tax return based on company earnings.

Thankfully, the latter situation is relatively rare, at least for the small business community. In most cases, LLC owners will simply include earnings from their company in their personal income and then pay these taxes when they file their personal tax returns in April.

Tax Preparation Made Easy

Of course, the easiest solution of all is to have someone else do the work for you. Why focus on last year’s earnings when this year has so much untapped potential? At Xendoo, our financial wizards can provide expert-level tax services that let you meet your obligations and deadlines, all without you lifting a finger.

Xendoo will help you file your business taxes and your personal taxes, and our team of experts is familiar with every type of business you can throw at us. You’ll not only save yourself the headache of filing your taxes, but you’ll also be better prepared for next year.

As every business owner knows, tax season is always right around the corner. Give us a click today, and sign up for our free trial offer. We can keep you on target for your personal and business taxes and help you stay focused on your business.

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4 Ways Small Business Owners Can Stay Tax Compliant

The Details Matter 

A crucial component of being a small business owner is meeting certain tax requirements in order to remain compliant in the eyes of the IRS. It can feel overwhelming to keep track of every rule and deadline, especially while juggling countless other business responsibilities day in and day out. 

That is why the Xendoo team has created this guide to help business owners stay on top of their tax requirements, remain compliant throughout the year, and effortlessly maximize their return! 

Keep Your Bookkeeping Up-to-Date

Up-to-date and accurate bookkeeping saves business owners time, stress, and money during tax season. 

By keeping your books up-to-date, you can be confident that you are reporting your income and expenses correctly, paying the proper amount in taxes, and paying your estimated taxes in a timely manner, which produces a stress-free tax season. Instead of playing phone tag with your finance professional over missing documents, you can work with an online accountant who will determine the tax deductions you qualify for and file your taxes on your behalf, so you can get back to what you love – growing your business! 

Pay Self-Employment Tax

In typical payroll situations, self-employment taxes are split between the employee and employer, each paying 7.65%. Self-employed individuals pay both halves: 12.4% for Social Security and 2.9% for Medicare – 15.3% all together, which applies to business profit. For example, if your business is an LLC, and made $100,000 in profit, you will pay $15,300 in self-employment taxes. Self-employment income is reported on the Schedule C that accompanies Form 1040. As a rule of thumb, self-employment taxes are required if you made $400 or more in net earnings from self-employment. 

While self-employment taxes cannot be waived, there is a way to decrease them. 

Self-employment tax payments can be decreased by electing to be taxed as an S-Corporation. S-Corporation owners pay themselves in two different ways: salary and distributions. While the salary is subject to self-employment taxes, the distributions are exempt, which allows S-Corps to avoid double taxation. 

It is always best to speak to a small business tax accountant. They will get to know your business, and determine if S-Corp Election is right for you. 

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Pay Quarterly Estimated Taxes 

Because self-employed individuals do not have taxes withheld from their paychecks like W-2 employees, they pay quarterly estimated taxes in order to cover Social Security, Medicare, and income tax. Those that expect to owe $1,000 or more in income tax are required to make quarterly estimated tax payments, and will file using Form 1040-ES.

To ensure that your estimated tax payments are made on time, mark your calendar with the upcoming deadlines: 

  • January 18, 2022 (the final installment for 2021)
  • April 18, 2022
  • June 15, 2022
  • September 15, 2022 
  • December 15, 2022 

Now comes the fun part: calculation! By dividing last year’s tax liability by 4, you can determine what you will owe each quarter for this year. 

For example, if you paid $10,000 in taxes last year, you will owe $2,500 in quarterly estimated taxes this year ($10,000/4 quarters = $2,500).

If your income fluctuates, consider calculating your payments based on your quarterly earnings instead. You can also take advantage of Xendoo’s small business tax services. Our expert online CPAs are available all year long, so you can make informed decisions each quarter, and maximize your return when tax season arrives! 

To learn more about calculating your quarterly estimated tax payments, click here. 

Separate Personal and Business Bank Accounts

One of the most straightforward ways to remain tax compliant is to separate personal and business bank accounts. 

Using a business bank account and credit card ensures financial accuracy, which is crucial to tax compliance. Instead of sorting through personal and business expenses while bookkeeping, you will be certain you are only recording relevant expenses, and your books will reflect your true financial position. 

If you utilize personal assets for your business, like a home office or vehicle, keep detailed records of when and how they are used in order to support the deductions you claim. When tax season arrives, you will have the financial clarity needed to accurately report your financials to the IRS. 

Expert Tax Support, All Year Long 

You do not have to lose sleep over tax compliance. Xendoo is here to help! We provide online bookkeeping services, as well as catch up bookkeeping, so you can focus on growing your business. Enjoy peace of mind knowing your financials are always up-to-date, and that your business is always tax-ready.

Let’s chat! We would love to get to know your business. Click here to schedule your free consultation.

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How Do I Pay Myself and My Taxes as a Partnership?

Every partnership owner faces the unique challenges of self-payment, tax filing, and maximizing their tax savings. Although they would rather focus on growing their business, taxes and payroll often take up too much of their valuable time. 

If the self-payment struggle is all too familiar to you, Xendoo is here to help. We have created this guide to help you pay yourself and maximize your savings as a partnership owner!

How to Pay Yourself as a Partnership Owner: The Owner’s Draw or Guaranteed Payments 

Partnership owners pay themselves by taking an owner’s draw or a guaranteed payment, with profits distributed to each member based on the partnership agreement. Note that partnership owners are not permitted to take a salary, as the IRS states that you cannot be both a partner and an employee. 

The Owner’s Draw

An Owner’s Draw differs from a regular salary in that you can take money from the company’s earnings as needed, rather than on a scheduled basis. Depending on how well your business is performing, you can draw more or less, allowing for flexibility in your payments.


If your business is profitable, subtract liabilities (any debt your company owes) from assets (items of value the company owns). The remaining amount is referred to as ownership equity, which is what you will take your draw from. This amount is reflected on the Balance Sheet, under Owner’s Equity. Once you determine the amount you want to take, it can be transferred from your business bank account to your personal account.  


Because the Owner’s Draw is taken from ownership equity, it reduces the funds that can be used for operating or growing the business. Partnership members must balance how much they need to support themselves and what the business needs to thrive.


Guaranteed Payments

What if your business is in the early stages, and not producing profit yet? The solution lies in guaranteed payments. 


Guaranteed payments are a minimum amount that is guaranteed to be paid to a partner regardless of business profitability. The payments must be made even if the result is a loss for the business. They provide a consistent income to partners as the business grows and becomes profitable. Note that if the business is operating at a loss and providing guaranteed payments to partners, that loss must be funded through debt or investments (equity) to ensure that the necessary expenses of the business can be paid. 


Discuss your options with an online partnership accountant at Xendoo. They will provide the financial insight needed to make the most informed decision regarding self-payment in your partnership! 

How Do I Pay My Taxes as a Partnership Owner?

Partnerships file their taxes using Form 1065, which determines that each partner is reporting their income correctly. Each partner must complete an accompanying Schedule K-1, which breaks down their share of the profits and losses. They also report this information on their individual tax return (Form 1040), with a Schedule E attached. The owner’s draw is not subject to payroll taxes, but it is considered personal income and is taxed accordingly. If partnership members take the owner’s draw, they must pay estimated taxes, which helps decrease their tax bill. 


Guaranteed payments are tax-deductible to the partnership, and are treated as self-employment income for the partnership members. They are reported on the Schedule K-1, and noted as income on the Schedule E. If the partnership members choose to take guaranteed payments, they will pay both income tax and self-employment taxes as individuals. 

What are the Tax Advantages of Filing as a Partnership? 

No Double Taxation 

The partnership itself does not pay income taxes. Partnerships are considered “pass-through entities”, meaning that profits and losses “pass through” the business to the partners, with each paying a portion of the total income tax of the business’s earnings. In this situation, profits and losses are only taxed at the personal level, which allows partnerships to avoid double taxation. 


Even with a significant tax advantage, taxes can still be stressful. Talk to a small business CPA at Xendoo. We provide online accounting for partnerships, as well as online bookkeeping services so you can stay tax-ready all year long.

Xendoo is Here for You

You are not alone as you navigate self-payment, tax filing, and all the financial ins and outs of your partnership. Xendoo is here to help! Our online bookkeeping and accounting team provides partnership owners with the financial insight needed to make the most informed decision regarding self-payment and partnership taxes! 


Are we a fit for your partnership? Get started today with a free consultation.


Want to learn more about the different business entity types? Click here.  

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How to Prepare Your Business for Tax Time

A broker goes over his taxes for his real estate business.

Planning ahead is always a good business strategy, especially when it comes to taxes. Adopting a proactive strategy can help you stay ahead of business tax filing deadlines, avoiding the rush and the headache during tax season! 

To help business owners with their tax preparation, we’ve prepared a business tax filing guide to walk you through the process.


Any good business tax filing guide should start with the various filing deadlines associated with taxes for businesses. For a detailed explanation of these dates, you can check out this helpful article from Karen Doyle. 

Here, we’ll summarize the need-to-know facts about various filing deadlines.

Income Tax for Individuals, Sole Proprietors, and Single-Owner LLCs

Individual taxpayers, sole proprietors, and single-owner LLCs must make estimated tax payments on a quarterly basis and file an annual income tax return. 

The filing deadline is typically April 15, but the IRS moved this deadline to March 15, 2021 for this past year. Deadlines for state income tax can vary, so your state’s tax collection authority can be a helpful tax guide for local deadlines.

2021 Tax Filing Deadlines for Estimated Income Tax

Businesses and self-employed individuals must submit quarterly estimated tax payments according to the following schedule:

  • First Quarter: April 15
  • Second Quarter: June 15
  • Third Quarter: September 15
  • Fourth Quarter: December 15

Estimated payments can be calculated using Form 1120-W.

Income Tax Returns for Partnerships and S Corporations

S Corporations and partnerships must file a return by March 15, 2021, or the 15th day of the third month following the end of the organization’s tax year. 

These organizations must generate a Schedule K-1 earnings statement for each partner or for the organization. The following forms will be needed to generate a Schedule K-1:

  • Partnerships: Form 1065
  • S Corporations: 1120S

You may file for a six-month extension by submitting Form 7004. You will also need to submit a deposit equal to the amount of tax owed. The return will be due on September 15, including any interest and penalties.

Corporate Income Tax Returns

Companies must submit a corporate income tax return by April 15, 2021. Corporations can request a six-month extension by filing Form 7004, though they will also be required to submit a deposit for their estimated taxes.

If your business requests an extension, the new deadline will be October 15, 2021. This will also be the deadline for your first quarterly tax payment. 

If you do decide to request an extension, you’ll need to be prepared to pay your annual income tax from 2020, your quarterly tax payment for 2021, and any penalties or interest no later than October 15, 2021.

Employment Tax Filings for Wages and Non-Employee Compensation

Employers must distribute physical copies of tax forms by January 31 to any individual who received cash payments that include:

  • Wages
  • Non-employee compensation
  • Dividends
  • Royalties
  • Profit-sharing distributions

Electronic copies may be submitted instead, but only with the consent of the employee. 

Electronic copies must also be submitted to the Social Security Administration by the same date. The following documents are subject to the January 31 deadline:

  • Forms 1097, 1098 and 1099
  • Forms 3921 and 3922
  • Forms W-2 and W-2G

Small businesses must submit corresponding copies to the IRS by February 28. Keep in mind that you may also be required to submit the following forms:

  • Form 1096, Annual Summary and Transmittal of U.S. Information Returns
  • Form 8027, Employer’s Annual Information Return of Tip Income and Allocated Tips

You may be able to receive an extension for filing electronically, though this varies by year.

Employment Taxes and Payroll Withholdings

Small businesses must file Form 941, Employer’s Quarterly Federal Tax Return, according to the following schedule:

  • April 30
  • July 30
  • October 29
  • January 31

The following forms are due on the last business day of the first month after the end of each calendar year:

  • Form 940, Employer’s Annual Federal Unemployment (FUTA) Return
  • Form 943, Employer’s Annual Federal Tax Return for Agricultural Employees
  • Form 944, Employer’s Annual Federal Tax Return
  • Form 945, Annual Return of Withheld Federal Income Tax

In 2022, this deadline falls on Monday, January 31.

Federal Excise Tax Requirements for Small Businesses

Some industries are required to pay excise taxes. Retailers, manufacturers, travel services, and communication companies file Form 720, the Quarterly Federal Excise Tax Return, on the following dates:

  • April 30
  • July 30
  • October 29
  • January 31, 2022

Form 11-C, Occupational Tax and Registration Return for Wagering, is used for businesses that accept bets. This form must be submitted before accepting any bets. Form 730 must be submitted monthly.

Form 2290 is used for businesses that rely on heavy highway vehicles. This form must be filed by the last day of the vehicle’s first month of use. After this, the excise tax period runs between July 1 and June 30.


What can you do to adopt a proactive strategy when it comes to your business tax filings? Our business tax filing guide offers three tips that can help you be prepared for next year’s tax season.

Make Sure Your Books Are Caught Up

Keeping your books up-to-date is one of the most important things you can do for your business. The further you get behind in your bookkeeping, the harder it will be to stay current with your financial and legal obligations — that can quickly make tax season a nightmare!

Many small business owners cut corners by handling their own books, only to later discover that they’re in over their head. Sound familiar? Don’t worry; you’re not the first. 

Outsourcing these needs to a professional bookkeeping service can help you get caught up, while keeping your business running smoothly all year round.

Gather Important Documents

You’ll also want to establish an organizational system to gather and preserve your important financial documents. We’ve already mentioned some of these earlier on this business tax filing guide, but the most important documents include: 

  • W2s from employers
  • 1099s from contractors or miscellaneous income
  • Documents showing itemized expenses (medical, educational, child care, etc.)
  • Statements regarding investments
  • Statements regarding mortgage interest payments
  • Receipts from charitable donations
  • Receipts for deductible expenses

These documents will be essential for calculating the federal income taxes that you owe. 

Plan Ahead

Our business tax filing guide is based on a key principle: it’s better to be proactive than reactive. Not only does that mean keeping deadlines on your company calendar, but it also means finding creative ways to handle your tax debts each year. 

For instance, you might plan a series of charitable donations that can be deducted from your income each year. You might also plan some type of investment or savings account that can be used to pay your tax debts. 

Consulting a tax preparation service can help you to take advantage of every available deduction, which can lower your total tax payments for a given year.

Xendoo, Offering Proactive Solutions for Your Business

At Xendoo, we understand the demanding nature of modern businesses. We also understand that since the services of a CPA cost roughly $60 an hour, it can be difficult to stay up-to-date on your books. That’s why we’re committed to providing top-quality accounting and bookkeeping services that won’t break your budget. 

When you partner with Xendoo, you’ll be able to rely on industry-leading services that include tax preparation, bookkeeping, and more, thanks to our experienced team of professionals. 

Want to learn more? Reach out today, and we can start you and your business on the path to success.