Taking Care of Taxes for the Self Employed
This content was created by FOX News’ Branded Content Studio in partnership with TaxAct. FOX Business editorial was not involved in the creation of this content.
The COVID-19 pandemic shaped the US economy in a myriad of ways, and businesses of all sizes have been impacted. It comes to no surprise that many small businesses nationwide had to shut their doors as foot traffic decreased during early quarantines, but on the flip side, many individuals have also challenged the new normal by opening new businesses. At first glance, the trend of new businesses cropping up across America may seem to fly in the face of the wavering health of the US economy during this global health crisis, but there are many valid explanations.
Mark Jaeger, Vice President, Tax Operations at TaxAct®, proffers that flexibility is likely a leading factor for this trend among entrepreneurs. After all, when much right now feels uncertain and many are contemplating changes in career or family additions to their household, having the ability to adapt is necessary.
"Flexibility is what people want in a job. They don’t want to be tailored to a 9-to-5," says Jaeger. "I think from a family life perspective, people truly appreciate being their own boss because it gives them a little flexibility."
Jaeger also believes the three stimulus checks, which were dispensed in 2020 and 2021 to provide financial relief to citizens, may have played a role as well. "Maybe they were thinking about [starting their own businesses] originally, and with the 3 stimulus checks, the cash flow may have helped give them the opportunity to start their business now."
Whatever the motivating factors, entrepreneurs who set up their own businesses in 2021 are now facing their first tax season as an entity. Business owners need to know how the tax code applies to their organizations and how to file their taxes appropriately to comply with federal and state regulations. Jaeger encourages business owners to consult with TaxAct’s team of tax experts with any questions they may have. After all, there are many factors that can impact your taxes: business classification, deductible expenses, number of employees, and product/service industry, to name a few.
"Specifically, for those who would have started businesses in the past year and are completely new to the business tax filing process, I anticipate them having the most questions going into this tax season," says Jaeger.
He states that "there are a lot of tax incentives and credits out there," and for business owners, those can be what make or break them. So being able to consult a knowledgeable team of tax preparation professionals who can help identify those and offer advice for how best to complete one’s business taxes is key. Jaeger says that gig workers and independent contractors can ask unlimited questions of TaxAct CPAs and other tax experts through its free Xpert Assist* offering. Additionally, TaxAct Xpert Full Service** is a great option for those who want a more hands-on filing experience as it allows filers to give their tax documents to TaxAct’s team of tax professionals who will complete the return from start to finish.
Says Jaeger: "I believe our Xpert Assist℠ and Xpert Full Service℠ are both [important offerings], especially for new business owners…To have the opportunity to get access to a CPA on the phone while at home, and to get it for free – it just shows the commitment that TaxAct is trying to provide, not just for employees with simple returns, but also for gig employees and business owners."
With numerous tax features and resources available from one of the market’s only cloud-based business tax solutions, those who have founded their own businesses can file their taxes confidently. To learn more, go to www.TaxAct.com.
*TaxAct Xpert Assist: Available to certain users of TaxAct's online, consumer 1040 product for an additional charge. Service hours limited to designated scheduling times and by expert availability. Some tax topics or situations may not be included as part of this service. View full TaxAct Xpert Assist Terms and Conditions.
**TaxAct® Xpert Full Service: Xpert Subject to availability restrictions at TaxAct’s sole discretion. Provided service is complete with filing of prepared federal 1040 return and any necessary amendments or extensions and does not include access to other TaxAct products or features or returns with local or foreign filings or certain complex tax situations. View full TaxAct Xpert Full Service Terms and Conditions for further details.