Small business owners are often faced with complex tax obligations. Tax season can be a frustrating time for entrepreneurs and small business owners who have many other duties to perform in order to run their businesses.
Tax solutions are a great way for you to do it yourself and prepare your taxes. Tax apps, software solutions for small businesses, and other tools have been created specifically with the needs of small businesses in mind.
The total amount you owe the IRS or any other government agency is your tax liability. You can reduce your tax liability for your business by keeping track of all the business expenses that you can deduct.
Small business tax solutions
Take a look at the ten tax solutions for small businesses that can help ease the tax burdens of business owners and streamline tax preparation and filing.
Hurdlr simplifies the tracking of business expenses and mileage. Documentation for every deduction will help you to keep more of your earnings. Hurdlr’s mobile app uses GPS to track mileage and calculate reimbursement. A drag-and-drop calendar allows you to record time, activity, and mileage all in one event.
The tool provides instant reporting and real-time feedback about tax savings. The free version includes unlimited mileage tracking, income tracking, and tax calculations. You can also export or email expense reports and other reports. The higher levels offer services such as real-time calculation of state and self-employment taxes and double-entry bookkeeping.
TaxJar simplifies compliance with e-commerce tax by businesses that sell online and collect tax from their customers in 11,000 jurisdictions. It provides automated sales tax reports to eliminate the need for manual breakdown of sales taxes. You can also check if you are collecting the correct amount of tax by comparing your records with the actual amounts.
TaxJar also pulls in data from e-commerce platforms like Amazon, Shopify, and Etsy. It can also be used to submit filings or remittances. For businesses that must file in more than one state, TaxJar also offers state-based information and transaction history to ensure compliance in the case of an audit. TaxJar offers plans starting at $19 per month for 200 transactions.
Intuit’s QuickBooks Payroll makes it easy to stay up-to-date with payroll tax regulations. The app is automatically updated to reflect the most recent tax changes. This eliminates the need to calculate deductions manually. The app will calculate your pay and allowances based on the number of hours you worked and your pay rate.
Users can also save payroll and employee data, including payee history with names, dates, and amounts of paychecks.
QuickBooks Payroll is priced at $22.50 a month, plus $5 per employee a month for the Core Level. Could you read our detailed review to learn more?
Keep up with changes to small business tax laws in order to benefit from tax reforms that are favorable for small businesses.
Payroll Tax Services by Wave
Wave’s Payroll Tax service is a cloud-based accounting platform that offers a payroll-filing and tax-filing solution for small businesses. Wave helps small businesses comply with tax regulations in addition to providing payroll services.
Wave eliminates the stress of knowing when and how to file payroll taxes by paying and filing them automatically. The service will also notify you before any action is taken and only withdraw funds when taxes are due. Payroll Tax Services by Wave start at $40 per month plus $6 for each active employee.
TurboTax Self Employed
TurboTax for Self-Employed (see below) is a solution that helps self-employed people file their taxes and get the maximum deductions.
Software online can help small businesses understand which expenses are deductible and explain industry-specific tax write-offs that are often missed. The software also simplifies asset amortization and takes into consideration vehicle tax deductions. There are also a wide variety of other tax features available.
TurboTax’s website currently offers TurboTax for Self-Employed at a price of $89. State tax packages will be charged separately. Included is a free e-file.
TurboTax Self-Employed Live Assisted
TurboTax Assisted Self-Employed includes all of the features found in TurboTax self-employed, plus unlimited tax advice from experts. TurboTax’s website currently offers TurboTax Assisted Self-Employed for $169. State tax packages can be purchased separately. Both packages include a free e-file.
Taxes are complex for self-employed individuals because they’re not automatically deducted. Understanding your tax rate, as well as any local and state taxes that may apply to you, is essential.
H&R Block self-employed
H&R Block Self-Employed provides tax software to small business owners. This includes independent contractors, gig workers, and freelancers. It helps users prepare and file LLC and partnership returns (Form 1065). It also produces IRS payroll forms (Forms 941, 940, and 931) and forms for employers (Forms 1099 and W-2).
This software allows businesses to maximize their tax benefits by maximizing deductions for business expenses, vehicles, equipment, and assets. The software includes unlimited free state program downloads, business e-file, and federal and state forms. H&R Block offers audit support and guarantees accuracy.
Downloading the software costs $85 plus an additional $37 for each state tax return. H&R Block tax experts offer unlimited on-demand assistance starting at $40 plus an extra state fee.
ETax.com offers a platform for tax filing that ensures maximum deductions. It also provides free storage of tax returns. The software includes a wizard to help users fill out tax forms. Seven days a week, it offers free federal filing as well as free customer service.
eTax.com’s Premium package, which costs $49.95, includes advanced tax returns and support for Schedule C filers in small businesses. State returns cost an additional $29.95. Tax professionals will review your tax return for $24.95 to make sure you haven’t made any common mistakes and that all deductions and credits available are used.