5 Common Business Income Tax Filing Errors

The subject of business income tax causes many business owners to stress. When filing your own business taxes, there are a number of errors that you need to watch out for. Here are a few of the common business income tax filing errors to try and avoid.

1. Business Tax ID Mistake

When filing your business income taxes, you will need it a business tax ID in order to do this successfully. Many businesses end up putting the wrong tax ID on their tax return. While this can be fixed, it is a common error that should be avoided. It could cause you some headaches with the IRS. Therefore, double check your business tax ID before sending in your tax return for the year.

2. Forgetting Signatures

When you file your taxes, there are a few different places that you will need to sign. Depending on which tax forms you have to fill out, there may be several places that have to be signed. Many business owners fill out all of the appropriate information and then forget to sign the tax returns. Make sure that you look over all of the different forms that you are about to submit can confirm that they are signed. Otherwise, this could delay your taxes being filed.

3. Missing Deadlines

Another very common mistake that many businesses make is missing the tax filing deadline. You have to make sure that you submit your taxes to the IRS before the deadline. Otherwise, you will have to file an extension or pay late fees as a result. If you work on a fiscal year instead of the regular calendar year, this can make it even more tricky to keep up with. Make sure that you make a note of the date that you have to file your taxes by in this case.  If you forget, it could end up costing you quite a bit of money that you do not need to pay.

4. Leaving Out Charitable Contributions

Another thing that many business owners do is forget to include charitable donations. Many businesses make charitable donations to qualified charities throughout the year and this is a great thing to do. However, if you forget to include on your taxes, you lose the ability for this to benefit you financially. Charitable donations often pass through to the owner of a particular business on their personal tax return. Therefore, if you are a business owner, you want to make sure to get all of the deductions that you are entitled to. Make sure to get some type of a statement from the charity that you donate to. Otherwise, the IRS might not allow the deduction to go through.

5. Home Office

If you utilize a home office as part of your business, you need to make sure that you take a home office deduction. You can deduct part of your mortgage, taxes, insurance, and utilities based upon how many square feet your office takes up. Many business owners forget this and do not take advantage of the deduction.

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