HOMEBLOGSmall Business Tax Briefs: February 2022
Small Business Tax Briefs: February 2022
Important tax aspects of operating your business as a sole proprietor
If you’re in business for yourself as a sole proprietor, or you’re planning to start a business, you need to know about the tax aspects of your venture. Here are eight important issues to consider:
1. You report income and expenses on Schedule C of Form 1040. The net income is taxable to you regardless of whether you withdraw cash from the business. Your business expenses are deductible against gross income and not as itemized deductions. If you have any losses, they’re generally deductible against your other income, subject to special rules relating to hobby losses, passive activity losses and losses in activities in which you weren’t “at risk.”
2. You may be eligible for the pass-through deduction. To the extent your business generates qualified business income, you’re eligible to take the 20% pass-through deduction, subject to various limitations. The deduction is taken “below the line,” so it reduces taxable income, rather than being taken “above the line” against gross income. You can take the deduction even if you don’t itemize and instead take the standard deduction.
3. You might be able to deduct home office expenses. If you work from home, perform management or administrative tasks from a home office or store product samples or inventory at home, you may be entitled to deduct an allocable portion of certain costs. And if you have a home office, you may be able to deduct expenses of traveling from there to another work location.
4. You must pay self-employment taxes. For 2022, you pay self-employment tax (Social Security and Medicare) at a 15.3% rate on your self-employment net earnings of up to $147,000 and Medicare tax only at a 2.9% rate on the excess. An additional 0.9% Medicare tax is imposed on self-employment income in excess of $250,000 for joint returns, $125,000 for married taxpayers filing separately, and $200,000 in all other cases. Self-employment tax is imposed in addition to income tax, but you can deduct half of your self-employment tax as an adjustment to income.
5. You can deduct 100% of your health insurance costs as a business expense. This means your deduction for medical care insurance won’t be subject to the rule that limits your medical expense deduction to amounts in excess of 7.5% of your adjusted gross income.
6. You must make quarterly estimated tax payments. For 2022, these are due April 18, June 15, September 15 and January 17, 2023.
7. You should keep complete records of your income and expenses. Carefully record expenses in order to claim all of the deductions to which you are entitled. Certain expenses, such as automobile, travel, meals and home office expenses, require special attention because they’re subject to special recordkeeping requirements or limits on deductibility.
8. If you hire employees, you need a taxpayer identification number and you must withhold and pay over employment taxes.
We can help
Contact us if you’d like more information or assistance with the tax or recordkeeping aspects of your business.
Leave A Comment
cheap kyrie 719 July, 2022
A lot of thanks for all of your work on this web site. Gloria delights in getting into internet research and it’s simple to grasp why. A number of us hear all concerning the powerful manner you render precious tricks through your web blog and welcome response from visitors on the concern and our own princess has always been studying a lot of things. Enjoy the remaining portion of the new year. You have been doing a brilliant job.
cheap kyrie 7 cheap kyrie 7
supreme20 July, 2022
I want to express thanks to the writer for rescuing me from this type of issue. After surfing around through the world wide web and obtaining ways which were not productive, I figured my life was well over. Living without the presence of solutions to the problems you’ve sorted out by way of the short article is a serious case, as well as ones that might have in a wrong way damaged my career if I hadn’t discovered your web blog. That capability and kindness in handling every item was useful. I am not sure what I would’ve done if I hadn’t come across such a subject like this. I can also now look ahead to my future. Thanks for your time so much for the specialized and results-oriented guide. I will not hesitate to endorse your blog post to anybody who will need guide on this matter.
air jordan23 July, 2022
My husband and i felt so peaceful Ervin managed to finish off his investigation from the precious recommendations he discovered through your site. It is now and again perplexing to simply find yourself giving for free information and facts which usually other people may have been selling. We remember we have got you to appreciate for that. All the explanations you’ve made, the straightforward site menu, the relationships you can aid to foster - it’s got many extraordinary, and it is assisting our son in addition to the family do think that theme is exciting, which is certainly exceedingly vital. Thank you for the whole thing!
air jordan air jordan
chrome hearts online store25 July, 2022
I must show my appreciation to the writer just for bailing me out of this particular circumstance. After checking throughout the world-wide-web and coming across advice which are not powerful, I thought my entire life was well over. Being alive without the strategies to the issues you’ve solved all through your good guideline is a crucial case, and those that would have negatively damaged my career if I had not come across your blog. Your own personal knowledge and kindness in dealing with everything was crucial. I am not sure what I would’ve done if I had not discovered such a subject like this. I can at this point look ahead to my future. Thank you so much for your expert and amazing help. I won’t think twice to endorse your blog to any individual who would need care about this topic.
chrome hearts online store chrome hearts online store
off white26 July, 2022
I really wanted to post a brief remark so as to appreciate you for the fantastic steps you are showing on this site. My incredibly long internet search has at the end of the day been paid with useful points to write about with my friends and classmates. I ‘d assert that most of us website visitors actually are quite lucky to be in a fine community with very many perfect individuals with insightful concepts. I feel really lucky to have used your entire web pages and look forward to many more cool times reading here. Thank you once more for all the details.
off white off white
off white clothing28 July, 2022
I simply needed to say thanks yet again. I do not know the things I could possibly have created without those tips shared by you concerning such a subject matter. Certainly was an absolute depressing circumstance for me, but discovering this skilled avenue you processed the issue forced me to leap for delight. Now i am grateful for the information and in addition pray you comprehend what an amazing job that you’re providing instructing people by way of your web blog. I am certain you’ve never met any of us.
off white clothing off white clothing
yeezy 350 v229 July, 2022
I must show appreciation to this writer just for rescuing me from this incident. Just after looking through the the web and finding tips that were not helpful, I figured my entire life was gone. Existing minus the answers to the problems you have sorted out as a result of the post is a serious case, and the kind that might have in a negative way damaged my career if I had not discovered the blog. Your primary mastery and kindness in taking care of the whole lot was valuable. I’m not sure what I would have done if I hadn’t discovered such a step like this. I can at this point relish my future. Thanks a lot very much for your high quality and effective help. I won’t think twice to recommend your web site to anyone who wants and needs support about this issue.
yeezy 350 v2 yeezy 350 v2
kobe shoes30 July, 2022
I and also my buddies ended up examining the best tips and tricks from your website and so immediately got a terrible feeling I had not expressed respect to you for those tips. Those young boys appeared to be for that reason warmed to read all of them and have in effect in truth been having fun with them. We appreciate you really being considerably accommodating and for choosing variety of awesome topics most people are really needing to learn about. Our honest regret for not expressing appreciation to you sooner.
kobe shoes kobe shoes
cheap curry 630 July, 2022
Thanks for all your hard work on this web page. My mom loves engaging in investigations and it’s easy to see why. We know all concerning the lively manner you offer precious ideas by means of this blog and invigorate contribution from other individuals about this issue then our own daughter is now understanding a lot of things. Enjoy the rest of the year. You’re the one doing a pretty cool job.
cheap curry 6 cheap curry 6
off white clothing30 July, 2022
Thank you so much for giving everyone an exceptionally spectacular chance to read critical reviews from here. It is always so kind and jam-packed with amusement for me personally and my office acquaintances to search your blog not less than three times every week to study the fresh issues you have got. Of course, I am actually happy with all the eye-popping points served by you. Selected 2 areas in this post are particularly the most effective we have had.
off white clothing off white clothing
michael jordan shoes30 July, 2022
Needed to send you the little note just to thank you yet again on your superb pointers you have discussed above. It is so wonderfully generous of you to deliver openly precisely what a number of people could possibly have distributed as an ebook to make some cash for their own end, most notably seeing that you might well have tried it if you ever desired. Those advice additionally acted to provide a good way to comprehend other individuals have the identical passion just like mine to see more and more pertaining to this matter. Certainly there are some more pleasurable situations ahead for people who read your site.
michael jordan shoes michael jordan shoes
jordan 1230 July, 2022
Thanks so much for giving everyone a very breathtaking opportunity to read in detail from this website. It is often so beneficial and also full of fun for me personally and my office friends to visit the blog no less than 3 times weekly to learn the new guidance you have. Not to mention, we are usually astounded concerning the remarkable opinions served by you. Selected 2 points in this post are in fact the most suitable I’ve had.
jordan 12 jordan 12
bape30 July, 2022
I simply desired to thank you so much once again. I do not know the things that I might have done without the tips revealed by you regarding my topic. Completely was a real distressing case for me, but seeing the very specialised way you dealt with that took me to weep for gladness. Now i’m happy for this service and thus sincerely hope you know what a great job you happen to be carrying out training the others through your web page. I’m certain you haven’t got to know any of us.
supreme new york01 August, 2022
Thank you so much for providing individuals with an exceptionally marvellous chance to read in detail from here. It’s usually so pleasant plus full of a good time for me and my office acquaintances to search the blog no less than 3 times every week to read through the newest guidance you have. And lastly, I am actually impressed with the unique methods served by you. Selected 1 points in this article are unquestionably the simplest we’ve had.
supreme new york supreme new york
hermes handbags02 August, 2022
I together with my guys have already been checking out the good procedures found on your web page and immediately came up with a terrible feeling I had not expressed respect to the blog owner for those secrets. These women appeared to be as a result very interested to read through them and have in effect in reality been tapping into them. Thank you for really being really considerate and then for settling on such incredibly good resources most people are really eager to be aware of. My very own sincere apologies for not expressing gratitude to you earlier.
hermes handbags hermes handbags
supreme clothing02 August, 2022
I intended to put you one bit of note so as to say thanks yet again with the pleasant views you have contributed in this case. It has been seriously generous with people like you to convey publicly all many individuals could have sold as an electronic book to earn some profit on their own, certainly considering that you could have done it in the event you wanted. These pointers likewise acted to become a fantastic way to be certain that other people have the same desire really like my very own to understand very much more on the topic of this matter. I’m sure there are several more fun occasions up front for individuals that discover your site.
supreme clothing supreme clothing
authentic jordans02 August, 2022
My wife and i have been very lucky when Raymond managed to finish off his preliminary research via the ideas he made while using the weblog. It’s not at all simplistic to just find yourself freely giving hints that many some others might have been making money from. We understand we’ve got the website owner to appreciate for that. All the illustrations you made, the simple site menu, the friendships you will aid to foster - it’s most impressive, and it is letting our son in addition to our family believe that this topic is entertaining, which is certainly rather important. Many thanks for the whole thing!
authentic jordans authentic jordans
yeezy02 August, 2022
I together with my friends were found to be analyzing the best pointers on the website and then suddenly got an awful suspicion I had not expressed respect to you for those techniques. These guys ended up as a consequence excited to read them and have in effect certainly been loving them. Appreciation for turning out to be so thoughtful as well as for utilizing variety of fantastic things millions of individuals are really needing to discover. Our own honest regret for not saying thanks to you earlier.
cheap stephen curry shoes02 August, 2022
Thanks for all of your work on this website. My aunt takes pleasure in getting into research and it is easy to see why. I know all regarding the lively manner you present insightful secrets on this web site and in addition encourage participation from the others on that area of interest then our daughter is undoubtedly becoming educated so much. Enjoy the remaining portion of the year. You have been carrying out a terrific job.
cheap stephen curry shoes cheap stephen curry shoes
cheap curry 719 July, 2022
Thanks a lot for giving everyone an exceptionally breathtaking opportunity to read from this blog. It really is so kind plus jam-packed with fun for me and my office friends to search your blog not less than 3 times in 7 days to learn the newest secrets you have got. Of course, I am just usually fulfilled for the astonishing pointers you serve. Some 1 tips on this page are unequivocally the very best we have ever had.
cheap curry 7 cheap curry 7