It’s tax time for small businesses. As of this writing, March 15th is the annual deadline for filing 1120s (S Corp) and Schedule k-1 forms.
I fill out (pdf) and file (upload pdf to mail-a-letter and send) mine myself every year.
This year also helping another business with filing and wanted to see if we could use turbotax to guide us through deductions.
Unfortunately online turbo tax doesn’t offer this. (see link below)
https://ttlc.intuit.com/community/business-taxes/discussion/can-i-file-a-tax-return-for-an-s-corporation-using-turbotax-form-1120s/00/318281
Only their desktop suite can do it.
But I have the feeling if I apply myself to it I can take care of finding deductions myself.
I’m going through these promising search results about deductions on 1120s now. (Of course there are the official instructions from the IRS)
In general filling out 1120s is not hard. But this is NOT LEGAL ADVICE. (Just my tinkering)
Here’s what I’ve found:
For “Cost of Goods Sold” (line 2) –
- This article explains that an S corp needs to file 1125a to show cost of goods sold
- This is the cost of goods form 1125a https://www.irs.gov/pub/irs-pdf/f1125a.pdf
- And this is the IRS info page on how to fill 1125a out
For deductions –
- You can deduct wages paid to 1099 contractors
- This is how to deduct Repairs and Maintenance (more results)
- oil changes for your work van would fall under this deduction
- Line 11 Rent
- Line 12 (Taxes and Licenses) clarified – it seems it is for deducting payroll taxes
- also may deduct some accountant fees