Partnership for u.s federal income tax purposes là gì năm 2024

How to claim income tax deductions for work-related expenses and other expenses, and record your deductions.

Cars, transport and travel

Deductions for car, transport and travel expenses you incur in the course of your work.

Tools, computers and items you use for work

Deductions for tools, computers, internet, stationery, books and other items you use for work.

Clothes and items you wear at work

Deductions for clothes, glasses, protective gear and other items you wear at work.

Working from home expenses

Deductions for expenses you incur to work from home such as stationery, energy and office equipment.

Education, training and seminars

Deductions for self-education, conferences and training. You can't claim children's school fees or care.

Memberships, accreditations, fees and commissions

Deductions for union fees, professional memberships, working with children check, agency fees and commissions.

Meals, entertainment and functions

Deductions for meals, snacks, overtime meals, entertainment and functions.

Personal grooming, health and fitness

Deductions for medical assessments, vaccinations, COVID-19 tests, gym fees, cosmetics and personal grooming.

Gifts and donations

Deductions for gifts or donations you make to deductible gift recipients, and the records you need.

Investments, insurance and super

Deductions for investment expenses, income protection insurance, personal super contributions and foreign pensions.

Cost of managing tax affairs

Deduction for expenses to manage your tax affairs, such as lodging with a registered agent.

Occupation and industry specific guides

Income and allowances to declare and the expenses you can claim a deduction for in your occupation or industry.

Pass-through taxation refers to businesses that do not pay taxes on the entity level. Instead, the income passes to the owners of the business who pays personal income taxes for their share of the business. Pass-through taxation typically applies to sole proprietorships, partnerships, and S-corporations as long as no exception applies. This is opposed to either traditional corporations or C-corporations, in which the company itself pays corporate taxes on income the corporation earns and later gets taxed on the owner level whether through sale of stock or distributions. States often have similar pass-through taxation regulations as the federal government, but some states may require documentation or taxation from the entity-level where the federal government would not. In some circumstances, an entity eligible for pass-through taxation may be able to be taxed as a corporation should the owners choose. Also, the Tax Cuts and Jobs Act created an important Qualified Business Income Tax Deduction which reduces the income an owner of a pass-through business must report on their personal income taxes up to 20% if they qualify.

For more on pass-through taxation, see this National Law Review article: Impact on Individuals Operating a Business Directly or Indirectly through a Pass-Through Entity (McGinley and Lorch), this Southern Methodist University Law Review article: The Taxation of Private Business Enterprises (Yin), and this National Law Review article (Ashraf and Wallwork).

[Last updated in April of 2022 by the Wex Definitions Team]

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  • TAXATION

Your business will need to meet its federal, state, and local tax obligations to stay in good legal standing. Your business structure and location will influence which taxes your business has to pay.

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Choose your tax year

Most businesses choose their tax year to be the same as the calendar year. You select your tax year the first time you file for taxes, but you can change it later with permission from the IRS.

• If you don’t have special accounting needs for your business, choose a calendar tax year.
• If you want your 12-month accounting cycle to end in a month that isn’t December, choose a fiscal tax year.
• If your business wasn’t in existence for an entire tax year, or you changed your accounting period, choose a short tax year.

If your business doesn’t have much reporting or bookkeeping, you might be required to use a calendar tax year. Check with the IRS for detailed rules about tax years.

Determine your state tax obligations

Your business might need to pay state and local taxes. Tax laws vary by location and business structure, so you’ll need to check with state and local governments to know your business’ tax obligations.

The two most common types of state and local tax requirements for small business are income taxes and employment taxes.

Your state income tax obligations are determined by your business structure. For example, corporations are taxed separately from the owners, while sole proprietors report their personal and business income taxes using the same form.

If your business has employees, you might be required to withhold taxes from their paychecks. Federal employment taxes include income, Social Security and Medicare, unemployment, and self-employment taxes. Check with the IRS to see which taxes you need to withhold.