IRS Tax Tip 2022-71, May 9, 2022
Small businesses play a pivotal role in the nation’s economy. The IRS offers a variety of tools and resources to help small business owners and self-employed individuals understand and meet their tax obligations.
Here’s are some highlights from this year’s National Small Business Week.
Information and resources for starting a business
- Small Business and Self-Employed Tax Center: This online resource should be business owners first stop to learn about tax issues involved in owning a business.
- Understanding the tax responsibilities that come with starting a business: This tax tip has information to help entrepreneurs set up their business.
- Gig Economy Tax Center: For taxpayers engaged in the gig economy, this site provides answers to tax questions, links to forms and resources related to activity where people earn income providing on-demand work, services or goods through an app or website.
- Small Business Forms and Publications: Employers can select and download multiple small business and self-employed forms and publications or call 800-829-3676 to order forms and publications through the mail.
Why making estimated tax payments is important
Small business owners, self-employed individuals may make estimated tax payments. Doing so can help them avoid an unexpected tax bill and possibly a penalty when they file next year.
Individuals and businesses are required to pay taxes as income is earned or received throughout the year. This is done either through withholding or estimated tax payments. This helps cover taxes the employee owes. For small business owners and self-employed people, that usually means making quarterly estimated tax payments.
These taxes are used to pay not only income tax, but self-employment tax and alternative minimum tax.
Plan ahead to take advantage of tax benefits for 2022
Next year’s filing deadline nearly a year away. However, it is not too early for entrepreneurs to identify possible tax benefits and take action to qualify for them. Doing this now can make claiming them easier when they file in 2023. These benefits include the enhanced business meal deduction, the home office deduction and more.