Our 2020 small business tax calculator is a free, easy-to-use tool that will set you and your business up for success.
These are your company's gross collections from customers.
All of the funds that you've spent in the process of running your business, including meals & entertainment expenses.
Expenses related to meals and entertainment, since they're only deductible up to 50% of what you've spent on these types of items (e.g. attending a sporting event with clients, taking a client out to lunch/dinner, etc.).
Any payments that you might've already made to the IRS for this year's taxes. We'll factor them into your remaining liability or refund.
The small business tax calculator can be used to properly estimate your business' tax liability/refund at the end of the year. Calculate your business taxes to help structure your finances for a seamless tax season.
Our calculator can help answer some of your questions as you move into tax season, such as how much you might be expected to pay for your taxes. From there, you can reach out to a Pro on our platform to have your taxes handled by a professional — which means less work for you, and a much smoother tax season for your business.
Our small business tax calculator uses the figures provided to estimate your tax expenses. From there, we'll take your revenues and subtract out your expenses, and then apply the correct tax rate to come up with an estimate of what you should be paying for taxes. We'll even account for any estimated tax payments that you might've made throughout the year.
This small business tax calculator is good for any small business that fits into the legal structures indicated above. If you're a sole proprietor or independent contractor, we strongly suggest that you use the advanced version of our personal tax calculator since sole proprietors and independent contractors file their business income under their personal returns.
If your calculations indicate that you will owe taxes at the end of the year, we suggest that you make quarterly estimated payments. One of our Pros can help you prepare the estimate and file it for you; they can even set up payments from your bank account to the Department of the Treasury for you.
Our small business tax calculator is very accurate. Ultimately, it depends on the accuracy of the selections and inputs that you make. Our small business tax calculator does not account for certain tax credits that your company may be eligible for (e.g. the R&D tax credit). These tax credits can have a very large impact on your tax calculation. Additionally, depending on the type of income that your business provides (i.e. ordinary income, passive income, qualified business income, non-taxable income (e.g. interest from municipal bonds), etc.), your taxable income and applicable rates can vary significantly.
Our Pros can help you determine which types of income your business earns and which credits your company may be eligible for — Get Started Now
Our small business tax calculator has a separate line item for meals and entertainment because the IRS only allows companies to deduct 50% of those expenses. For example, if you have a business that earns $200 in revenue and has $75 in expenses, then your taxable income is $125. Now, if $50 of those $75 in expenses was related to meals and entertainment, then your taxable income would increase by $25 to $150.
For the math nerds out there, $200 - ($50 x 0.5) + $25, where $200 represents your revenue, $50 represents your expenses related to meals and entertainment, and $25 represents all your other expenses.
Great question! You can still use our small business tax calculator even if you don't have your exact numbers available. You can simply estimate what you think your final income and expenses will be. However, it's very important to keep in mind that these are only estimates, and they could be significantly different from your final numbers.
If you know you're going to owe taxes at the end of the year, we strongly suggest that you consult with one of our Pros who can help you understand your tax situation and guide you in making the best possible decisions for you and your business — Get Started Now