Information about Taxes for Small Businesses in the USA

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As a business owner, it’s important to understand your federal, state, and local tax requirements which help you file your taxes accurately and make payments on time.

Source: USA Gov

Business Taxes

As a business owner, it’s important to understand your federal, state, and local tax requirements. This will help you file your taxes accurately and make payments on time. The business structure you choose when starting a business will determine what taxes you’ll pay and how you pay them.

  • Employer Identification Number (EIN) 
  • Income Tax
  • Employment Taxes 
  • Excise Tax
  • Property Tax 
  • Sales and Use Tax 
  • Estimated Tax 
  • Self-Employment Tax 

Estimated Taxes

Estimated tax is the method used to pay taxes on income that is not subject to withholding. This includes income from self-employment, interest, and dividends. You may also have to pay estimated tax if the amount of income tax being withheld from your salary, pension, or other income is not enough.

  • Who Has to Pay Estimated Taxes?
  • When Are Estimated Taxes Due?

Energy Tax Incentives

Energy-related tax incentives can make home and business energy improvements more affordable. There are credits for buying energy efficient appliances and for making energy-saving improvements.

Find out if you qualify for state, local, utility, or federal incentives.

Energy Tax Breaks by State

Federal Energy Tax Breaks

Energy-Saving Home Improvements

Residential Energy Credits allow savings for any of these purchases for your home:

  • Solar panels
  • Solar water heaters
  • Wind turbines
  • Geothermal heat pumps
  • Fuel-cell equipment

These tax credits are valid through 2021. 

New Energy Tax Breaks for 2018 – 2020

new law passed in December 2019 reauthorized many energy tax breaks that had expired in 2017. They’re now retroactive to 2018 and extended through 2020 or longer. They include credits for:

  • Energy efficient homes
  • Energy-efficient commercial buildings
  • Nonbusiness energy property
  • Qualified fuel cell vehicles
  • Alternative fuel vehicle refueling property
  • Energy tax incentives for biodiesel and renewable diesel, extended through 2022

Tax Relief in Disaster Situations

The Internal Revenue Service (IRS) offers special tax help to individuals and businesses hurt by a major disaster or emergency. 

  • Get Your Tax Refund Faster After a Disaster
  • Tax Relief for Recent Disasters

Federal Tax Deductions for Small Business Charitable Donations

Small businesses can receive a tax deduction for making charitable donation (PDF, Download Adobe Reader). The IRS has specific reporting requirements when a small business donates:  

  • Non-food inventory 
  • Food
  • Intellectual property 

You won’t receive a tax deduction for donating services. But you may be able to deduct expenses related to the donation, like travel or materials.

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