Small Business Tax Checklist
Rely on your team of Block Advisors certified small business tax pros—a part of H&R Block—to get your taxes right and keep your business on track. That starts with understanding your small business’ taxes.
To help you feel confident about your business taxes, we’re here for you throughout the year and at tax time when you’re ready to prepare your business return.
We’ve outlined a small business tax preparation checklist for 2020, so you can gather what you need.
Running your business on your own? You’ve come to the right place—you can also use this as a self-employed tax checklist.
Be sure to include all income sources when creating your small business checklist. This could include income from your day-to-day operations as well as any investment or ancillary income.
- Gross receipts from sales or services
- Sales records for accrual-based taxpayers (accounts receivable)
- Returns and allowances
- Business checking/savings account interest (1099-INT or statement)
- Other income, including rental income, federal and state gasoline or fuel tax credit or refund
Cost of Goods Sold
Some categories may not apply each tax season, so you should only include what applies for 2020 on your small business tax checklist. If you produce, purchase, or sell merchandise in your trade or business, you’ll need to take your inventory into account at the beginning and end of the year.
- Beginning inventory total dollar amount
- Inventory purchases
- Ending inventory total dollar amount
- Items removed for personal purposes
- Materials and supplies
A wide range of costs can fall under applicable business expenses. Don’t miss recording any of these on your small business tax preparation checklist. Our tax pros will help you find each and every deduction you deserve.
- Phones (landline, fax or cell phones related to business)
- Computer & internet expenses
- Transportation and travel expenses
- Commissions and fees
- Contract labor expenses paid to subcontractors and independent contractors
- Amortization of intangible assets (e.g., patents or copyrights held)
- Business insurance
- Interest expense
- Professional fees
- Office supplies
- Rent expense
- Wages paid to employees
- Employee benefit expenses
- Other expenses
- Information about 2020 COVID-19 related grants, economic injury disaster loans (EIDLs), or paycheck protection program (PPP) loans. See CARES Act tax information for Small Businesses.
Small Business Checklist – Additional tasks
Make sure you’ve completed all related tax issues such as:
- File Form 1099-NEC and Form 1096
- File Form W-2 and Form W-3
- File federal and state payroll returns (Form 940, 941)