When I filed the business TurboTax they said that I was going to get QuickBooks for free
Once you filed the business TurboTax, you will get the business QuickBooks subscription free of cost for a year. This subscription will be active until the 30th of April of the next tax year. QuickBooks Business is an application software that enables you to make an estimate of quarterly taxes. Along with this, your company profits and expenditures can also be recorded and handled during the year.
TurboTax Business is a software used to plan and assess corporate and partnership taxes for businesses. In order to file the tax using TurboTax Business, you have to follow the instructions below.
Procedure to file the tax using the Business TurboTax
To complete the procedure of filing the business tax using the Business TurboTax software, go through the following steps.
- Gather the documents
- Look for the right form
- Fill out your form
- Beware of deadlines
➥ Step 1. Gather the documents
The very first step is to gather all the business records before you proceed further with the procedure of filing taxes. In addition, you must have all the documents that will disclose profits and expenditures for your company.
It’s much easier to measure your income and expenses by using any computer software or spreadsheet to coordinate and keep track of all transactions that have happened throughout the year. TurboTax deals with services such as QuickBooks and Quicken, and you can directly insert details into your tax return.
➥ Step 2. Look for the right form
Thereafter, you need to determine the correct form of the IRS. You are required to report your business earnings to the IRS and then you have to pay tax according to it. But when you opt for the right form to report the earnings it depends on how you run your business.
The sole proprietorship has to report all their company profits and expenditures under Schedule C attachment. On the other hand, the IRS also allows using Schedule C attachment to operate the business as an LLC. If you use a corporation or want to view LLC as one, you have to file a distinct corporate tax under the 1120 form. If you use the TurboTax Business to file the tax return, you are supposed to answer some of the questions related to your business income and expenses. Thereafter, TurboTax Business will fill in all the appropriate forms for you on its own.
➥ Step 3. Fill out your form
You need to fill out the form 1120 or Schedule C form. If you report your business earnings under Schedule C, you can use the TurboTax to generate the form after entering all of the financial information.
Schedule C is a convenient way through which you can file business taxes because it is just two pages long. Also, it lists all the expenditures that you can report while filing the taxes. Once you file the business taxes under Schedule C, you need to deduct your expenses from your corporate profits to get your net profit or loss. Thereafter, the amount of net profit or loss is then transferred to your personal income tax form and included with all other personal income tax items.
If you use the 1120 form, though, you will be measuring your taxable business income in the same manner, but the form includes additional information that might not always apply to a small company. One of the disadvantages while filing Form 1120 is that it’s different from the personal income tax return.
➥ Step 4. Beware of deadlines
While filing the business tax returns you must be aware of the different deadlines for filing the taxes. In case, you file the tax using the Schedule C form, then it becomes the part of your Form 1040. Therefore, you don’t have to file separately while filing the taxes with Schedule C. It usually falls within the same deadline of April 15.
While paying the taxes as a C- Corporation you must have to file a Form 1120 before the 15th day of the fourth month after the end of the tax year, which is April 15 for the majority of taxpayers. Whereas, while paying the taxes as the S- Corporation, you must have to file a Form 1120 S. Then, you have to file it by the fifteenth day of the third month after the end of the tax year, which is March 15 for most taxpayers. With your personal income tax return, you can’t give the form to the IRS.
Note: When you use TurboTax to prepare your taxes, TurboTax will decide the form that we require for filing the tax. Thereafter, put all the details in the appropriate place. You only have to answer the general questions in English.
In case you need any help related to the Turbotax then you can contact Turbotax Support at +1-(888) 525-9575 (US/CA) or 020 8123 1722 (UK).