In many states, the season has arrived to deal with the infamous sales tax return, more than likely your business has to handle the sales tax side of business function every quarter or month, too.
This never-ending part of the business can get frustrating and overwhelming for the average person. That’s why there’s some really great help out there! When a person is looking for help with their sales tax filing this year, they can take pride in knowing that they have a knowledgeable team behind them with every step.
I live in New Hampshire, so we don’t have a sales tax, per se. Our stuff here is a little different, but I know we’re unique in that way. This is why I wanted to share some details about sales tax season with you all so that others in other areas of the states are able to get the help they need and deserve during tax season.
What documents are needed to prepare taxes?
There are many documents to have ready for your sales tax filing. Your preparer will tell you the appropriate forms that they need to complete this process for you.
A general rule of thumb is that you need to have at least the following documents and details ready for your tax preparer:
- W2 Form if you were employed as an employee.
- 1099’s and other misc income if you’re self-employed.
- Other income, such as investments, rentals, and such.
- Expenses for the business and that pertain to your employment.
- Retirement income.
- Other details such as sales taxes collected and fees associated with receipt of payments.
Since I’m not a tax professional, I’m merely giving you some advice on what you may need to have when you schedule your appointment for sales tax filing with a professional. Always ask what to bring so that you’re fully prepared for your appointment!
What is Sales Tax?
While I’m not an accountant or sales tax filing expert, it sounds like sales tax is essentially any goods that are considered taxable that you sold during the year are part of sales taxes.
Some states have sales tax imposed on services, too. You’ll know best what you paid in for sales taxes as most of you probably handle payments through a third-party processor which will make it easier to run a report for all fees, taxes, and income throughout the year.
You must file in your state for a sales tax permit before you can collect any economic nexus. Essentially you can’t start a business and handle sales tax until the state you reside in knows that you exist and will be collecting sales tax.
Again, I’m not a professional so please contact your region’s business and sales tax laws to know what you must do before collecting sales taxes.
As with most tax stuff, the average person and business owner may feel overwhelmed, concerned, or stressed. Taxes can be a stressful scenario. Having to pay in more than you were anticipating or owing money in general, can get rather frustrating and concerning.
I will tell you that most tax fees that are due have options. They simply want you to be honest and truthful in claiming your sales taxes and income. As long as you’re hiring a professional who knows what they’re doing, things will be just fine.
This year, I invite you to check out a sales tax return professional to assist you with your filling so that you can sit back, relax, and know that someone is handling this tedious part of the business for you!