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How-To: File S Corp Taxes Online
If you’re running an S Corp, you may be wondering how to file S Corp taxes online. While every business owner can file their taxes themselves, business taxes can get complicated. This guide will take you through how to file taxes as an S Corp, how to file S Corp taxes online, can you file S Corp taxes yourself and can I file my S Corp with my personal taxes.
Table of contents
Key Takeaways:...Read more
What is an S Corp?...Read more
Do S Corps get a 1099?...Read more
The last day to file S Corp taxes...Read more
I have an LLC, can I file tax as an S Corp?...Read more
Can I file my own S Corp taxes...Read more
Can I file my S Corp taxes with my personal taxes?...Read more
How to file S Corp taxes...Read more
Key Takeaways:
- An S Corporation is a pass-through entity where the owners are exempt from corporate taxes.
- The last day to file S Corp taxes is March 15th.
- S Corp taxes can be filed online using tax software, the IRS Free File Program or with the help of a tax pro.
What is an S Corp?
An S Corporation is a complex business structure that is quite different to sole proprietorships. S Corps can have multiple shareholders who pay taxes on their personal returns. This is because S Corps are “pass-through entities,” so they don’t have to pay corporate taxes.
S Corp shareholders also have limited liability protection so their personal assets are protected if the business faces any legal trouble.
When business owners file taxes for an S Corp, they have to keep track of their income and deductions throughout the year. An S Corp tax deduction calculator can help find relevant tax deductions that can lower taxes. Some common S Corp tax deductions include startup costs, internet costs, CPA fees and the Qualified Business Income Deduction.
The amount of S Corp taxes that individuals have to pay will depend on their personal S Corp federal tax rate. This can range between 10%-37% and is calculated based on Adjusted Gross Income (AGI). The rates apply to every state so if you’re looking for the NYC S corp tax rate, there’s your answer.
Knowing how to file taxes as an S Corp is an essential part of being a business owner. If you’re still confused, you can always ask a tax pro to help.
Do S Corps get a 1099?
S Corp business owners technically work for themselves, but do S Corps get 1099 forms? Generally, S Corps do not receive 1099 forms as they exist as a separate legal entity. However, if you’re an LLC who is taxed as an S Corp, you should expect to get 1099 forms from your clients if you made over $600.
When you file taxes for an S Corp, you also might have to make estimated tax payments if your personal tax liability is over $1,000. These payments are due quarterly and are subject to fines if you miss the deadlines. Use an estimated tax calculator to help.
The last day to file S Corp taxes
As an S Corporation, business owners have some extra deadlines to keep track of. We already mentioned the estimated tax deadlines, but what about the S Corp tax deadline in 2024? We’ll give you a hint, it’s not in April.
Shareholders will be expected to have filed their business returns by March 15 every year. The main form for S Corps is Form 1120-S and Schedule K-1. LLCs who chose to be taxed as S Corps also have the same deadline. You can file S Corp taxes online or by mail. Most taxpayers prefer e-filing as you get immediate confirmation if the IRS has received your returns.
If you have employees, you have to withhold federal income, Social Security and Medicare taxes from their paychecks. The S Corp also needs to file taxes every quarter using Form 941 to report these withholdings. The form is generally due on April 30, July 31 and October 31 and January 31 of the next year.
I have an LLC, can I file tax as an S Corp?
LLCs are a special type of business entity as they can choose how they want to be taxed. If an LLC has to file taxes as an S Corp, they are subject to all the same rules. This means filing before the S Corp tax deadline in 2024.
To get S-corporation tax status, you first need to file the necessary paperwork with the state. After your business is officially formed and you have a federal tax ID number, you can send Form 2553 to the IRS to apply for S Corporation status.
If this is your first time filing taxes as an S Corp, you can use an S Corp tax calculator to help you figure out what you owe.
Can I file my own S Corp taxes
If you’re part of an S Corp, you can absolutely file your S Corp taxes online. As long as you know the S Corp federal tax rate, your taxable income, deductions and have all your paperwork, you’re good to go.
There are special IRS programs where you can file your S Corp taxes online for free. Some areas even have volunteers who can help you prepare and file your taxes completely free of charge.
Even those who don’t qualify for those programs can find an S Corp tax software that caters to all their needs.
Can I file my S Corp taxes with my personal taxes?
You can't file your S Corp taxes directly with your personal taxes, but they are connected. Here’s how it works. First, your S Corp files its own tax return using Form 1120-S, which reports the company's income, deductions and credits. The S Corp itself doesn’t pay federal income tax. Instead, the profits or losses are passed through to you and any other shareholders.
You’ll receive a Schedule K-1 from the S Corp, which shows your share of the company’s income, deductions and credits. When it’s time to file your personal S Corp taxes online, you then report this information on your personal tax return (Form 1040), usually on Schedule E.
How to file S Corp taxes
Knowing how to file S Corp taxes online requires understanding how to calculate your taxes and which method you are going to use to file. If you’re asking “Can I file S Corp taxes myself?”, the answer is yes. However, it can get complicated.
This is why most business owners use an S Corp tax software to help with the heavy lifting (mainly the math) or hire a CPA to help. Let’s break it down step-by-step.
- Get Your Paperwork Ready: Gather all financial records for your S Corp, including income, expenses and payroll information. For example, if you run a small coffee shop, this means collecting receipts for supplies, payroll records for your baristas and sales records.
- Complete Form 1120S: This is the main tax form for S Corps where you'll report the business’s income, deductions and credits. For instance, if your coffee shop earned $200,000 and spent $150,000 on expenses, you’ll report this here.
- Prepare Schedules K-1: Each shareholder, including yourself, gets a Schedule K-1. This form shows their share of the S Corp profits. If you own 50% of the coffee shop and a friend owns the other 50%, both of you will get a K-1 showing your respective shares.
- File Form 1120-S: Submit this form to the IRS by March 15th. If you need more time, you can file for an extension using Form 7004.
- Report Schedule K-1: As a shareholder, the information from your Schedule K-1 is reported on your personal tax return (Form 1040). Typically, this goes on Schedule E. So, if your K-1 shows $25,000 in income, you’ll include this on your personal taxes.
- State Taxes: Check if your state requires a separate filing for S Corps. States have different rules. For example, if your coffee shop is in NYC , you’ll need to file a New York S Corp return and will be subject to the state’s business laws.
- Pay Estimated Taxes: If your S Corp is making a steady income, you might need to make quarterly estimated tax payments on your personal tax liability. This helps you avoid a big tax bill at the end of the year. Use Form 1040-ES for these payments.
- Keep Good Records: Throughout the year, keep detailed records of all financial transactions. This will make tax time much easier.
- Consult a Tax Professional: If you’re unsure about any step, it’s wise to get help from a tax pro. They can ensure you’re doing everything correctly and taking advantage of any tax benefits.
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