Friday, March 14, 2014

Monday is S-Corp Time.

Business taxes are normally due on March 15th. Since this date falls on a Saturday, the IRS extended the filing deadline to Monday, March 17th! Here are a few tax tips if it is crunch time for your business taxes. I’m not a professional so make sure to check my tips against your personal situation with your CPA.

TIPS:

1. S corporations generally don't pay taxes. Their owners pay taxes on their share of the corporations’ net income. To enable owners to figure their personal taxes, S corporations must issue these schedules to shareholders. Schedule K-1 tells shareholders their share of income, deductions, credits, and other items.

2. There are some changes related to Form 1120S to consider. S corporations may need to complete a new Schedule B accompanying their Form 1120S.

3.New on this year’s Schedule K-1 is code U of box 17 for reporting information related to the net investment income, or NII, tax. This is an additional Medicare tax of 3.8 percent on the lesser of net investment income or the shareholder’s modified adjusted gross income over his or her threshold amount that depends on tax-filing status.

Happy tax filing,

Twyla N. Garrett

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