Wednesday, May 11, 2016

Landscapers And Gardeners: Tax Help Is Just A Click Away

The IRS recognizes Small Business Week May 1–7 by highlighting some of its most popular educational products, videos and webinars to help your small business thrive.

If you are a self-employed landscaper or gardener, be sure to view the IRS webinar “Business Taxes for the Self-Employed: The Basics.”

Here are some topics included in the webinar or on IRS.gov that you should know:
  • Accounting Method.  An accounting method is a set of rules about when to report income and expenses. Many small businesses use the cash method. Under the cash method, you normally report income in the year that you receive it and deduct expenses in the year that you pay them. Find out more in IRS Publication 538, Accounting Periods and Methods.
  • Business Taxes.  There are four general types of business taxes. They are income tax, self-employment tax, employment tax and excise tax. You may need to pay self-employment tax as well as income tax if you make a profit. Self-employment tax includes Social Security and Medicare taxes. With estimated tax payments, you pay taxes at various times during the year to ensure you don’t have a large tax bill when you file your tax return. Use IRS Direct Pay, the fast, easy and secure way to pay from your checking or savings account.
  • Tax Forms.  There are two forms to report self-employment income. You must file a Schedule C, Profit or Loss from Business, or Schedule C-EZ, Net Profit from Business, with your Form 1040. You may use Schedule C-EZ if you had expenses less than $5,000 and meet other conditions. See the form instructions to find out if you can use the form. Use Schedule SE, Self-Employment Tax, to figure your SE tax. If you owe this tax, make sure you file the schedule with your federal tax return.
  • Allowable Deductions.  You can deduct expenses you paid to run your business that are both ordinary and necessary. An ordinary expense is one that is common and accepted in your industry. A necessary expense is one that is helpful and proper for your trade or business. View the webinar “Small Business Owners: Get All the Tax Benefits You Deserve” to learn more. 
  • Business Use of a Vehicle.  If you use your car or truck for your business, you may be able to deduct the costs to operate the vehicle for the business use. Refer to IRS Publication 463, Travel, Entertainment, Gift, and Car Expenses for details.
Follow the IRS on Twitter. The IRS has three key accounts: @IRSnews, @IRStaxpros and @IRSenEspanol. For all the IRS Small Business Week information, keep an eye on these IRS Twitter accounts and hashtags: #IRSsbw16 and #DreamSmallBiz.
Additional IRS References:
IRS YouTube Videos:
IRS Podcasts:

Beauty And Barber Shops Can Get Help At IRS.GOV

The IRS recognizes Small Business Week May 1–7 by highlighting some of its most popular educational products.

If you are self-employed, visit IRS.gov for all your tax needs. Knowing the tax rules can help your business start, grow and succeed. For example, see IRS Publication 4902, Tips for the Cosmetology and Barber Industry.

Here are some of the topics included in this booklet or detailed on IRS.gov:
  • Business Structure.  One of the first things you need to decide is the type of structure for your business. The most common types are sole proprietor, partnership or corporation. You may have employees or rent space to someone who is self-employed. Visit IRS.gov for tips on starting and operating your business.
  • Report Tip Income.  All tips you receive are taxable income. If you have employees who receive $20 or more in cash tips in any one month, they must report them to you. You must withhold federal income, Social Security and Medicare taxes on the reported tips. Learn more about these rules in the IRS video Reporting Tips.
  • Business Expenses.  You can deduct ordinary and necessary expenses that you pay to run your business. An ordinary expense is a common and accepted cost for that type of business. A necessary expense is a cost that is proper for that business. For example, cosmetologists are often required to get a license or pay for a permit or certification. See Publication 535, Business Expenses for more on this topic. 
  • Estimated Tax.  If you are self-employed you may need to make estimated tax payments each year. If you do not pay enough tax during the year, you may owe a penalty. Use Form 1040-ES, Estimated Tax for Individuals to figure the tax. Direct Pay, available on IRS.gov, now offers you the fastest and easiest way to make these payments.  
  • Depreciation of Assets. You can deduct the cost of some assets over a number of years. For example, if you buy equipment and furniture, you should depreciate the cost of those items since you will normally use them for more than one year. Check out the IRS webinar Depreciation Basics to learn more.
  • Filing Your Taxes.  If you have employees, the IRS offers electronic filing options for your federal payroll tax returns. IRS e-file is fast, safe and accurate. You'll also receive an electronic acknowledgment when the IRS accepts your e-filed return. You can use EFTPS to make any federal tax payments.
  • Keeping Records.  Everyone in business must keep records. You must have good records to support the income, expenses and credits that you report. Good records can help you keep track of your business. They can also increase the likelihood of business success. Watch the IRS video Good Recordkeeping Helps Avoid Headaches at Tax Time to find out some of the best practices.
Follow the IRS on Twitter! The IRS has three key accounts: @IRSnews, @IRStaxpros and @IRSenEspanol. For all the IRS Small Business Week information, keep an eye on these IRS Twitter accounts and the key hashtags: #IRSsbw16 and #DreamSmallBiz.
Additional IRS References:
IRS YouTube Videos:
IRS Podcasts:

For help with your legal needs contact a business, tax, and health care law attorney at the offices of AttorneyBritt.

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