It’s Tax Time: The Forms You Need to Know

Created by admin

It’s nearing tax time and the accounting department is buzzing. This is where your consistent record keeping really pays off. You will be busy handing out tax forms to employees and independent contractors. You will also file a tax return in which you’ll report the business earnings and pay taxes on the profits. A larger business will probably file a tax return that stands on its own. However, if the company is smaller, it may be filed as a part of the owner’s tax return. Regardless, there is lots of work to be done!

FIND SCHOOLS
Sponsored Content

Tax Forms

Employees: Make sure each employee receives a W-2 form. For independent contractors, use Form 1099. File these either in paper form or electronically. It’s recommended if you have more than 250 forms to file, do so electronically.

Proprietorship & Single Member LLC Tax Return: For federal, state and local tax returns, report the profits on Schedule C and the net profit/loss amount on Schedule C on Form 1040. It’s important to note the amount included for income tax reporting is the calculated profit of the business, not the amount the owner withdrew.

Partnership Tax Return: Use Form 1065. Each partner receives Schedule K-1, which reports his/her share of the profits. Each partner reports the net profits reported on Schedule K-1 on his/her personal tax return, using Schedule E.

LLP or Multimember LLC Tax Return: The business files Form 1065. If the business opts to be treated as a corporation, including an S corporation, then it must file Form 8832.

S Corporation Tax Return: File Form 1120S. Include Schedule K-1 with the return to report the profit for each stockholder and a summary of any other transactions specific to that stockholder. The S Corporation also files state income tax returns for every state in which it conducts business.

C Corporation Tax Return: File federal Form 1120 and applicable state corporate tax returns. Make sure stockholders receive the appropriate tax forms. W-2 for wages, 1099-MISC for directors’ fees, 1099-INT for interest, and 1099-DIV for dividends.

Featured Programs:
Sponsored School(s)
Wiley University Services maintains this website. We are an advertising-supported publisher and are compensated in exchange for placement of sponsored education offerings or by you clicking on certain links posted on our site. This compensation may impact how, where and in what order products appear within listing categories. We aim to keep this site current and to correct errors brought to our attention. Education does not guarantee outcomes including but not limited to employment or future earnings potential. View Advertiser Disclosure
Wiley University Services


©2024 https://www.accountingedu.org All Rights Reserved.