IT'S TAX SEASON! Handle Your Black Business

Posted by Black Business on 3rd Apr 2024

IT'S TAX SEASON! Handle Your Black Business

NEGRO DIGEST ™ The Only Magazine For Black Men In America

Business Taxes

All businesses, with the exception of partnerships, must file an annual income tax return. If your net earnings from self-employment (side jobs or other independent work)  are over $400, you must file. The form you use depends on how your business is organized. Tax laws are complicated, but many mistakes can be avoided by filing electronically. 

The federal income tax is a pay-as-you-go tax. Generally, you must pay taxes on income, including self-employment tax, by making regular payments of estimated tax during the year. 

Tax software does the math, flags common errors and prompts taxpayers for missing information. It can also help your business claim valuable credits and deductions.

The Electronic Federal Tax Payment System (EFTPS) is a free service from the U.S. Department of the Treasury that millions of businesses, individuals, federal agencies, tax professionals, and payroll services have used to pay taxes.

Using a reputable tax preparer – including certified public accountants, enrolled agents or other knowledgeable tax professionals – can also help avoid errors.

The federal tax code does not have any specific credits or benefits for minority-owned businesses. 

However, numerous federal agencies, local governments, and corporations allot a portion of their budgets to work with minority-owned businesses.