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Guide for Tax Management and Declaration for Businesses and Individuals in the United States

Guide for Tax Management and Declaration for Businesses and Individuals in the United States

Table of content

Paying taxes for businesses and individuals is a fundamental part of financial management, and having the right documentation is crucial to meet tax obligations. In this article, we explore the key elements you need to optimize your tax declaration for businesses and individuals in the year 2023.

Tax declaration for businesses

Businesses undertake significant tax obligations, including timely filing of federal tax returns such as income tax and compliance with state requirements, such as filing the Annual Report or Franchise Tax. To streamline the filing process and avoid errors, it is essential to consider the following requirements:

woman happy because she is going to pay her corporate taxes in the united states

Essential documentation for business taxes in 2023

  • Bank statements for the year 2023:

Make sure to gather bank statements from all your business accounts in the United States throughout the year 2023. Obtaining complete documentation is essential to solidly support all your financial transactions.

  • Income and expense records:

Maintain a detailed record of all income and expenses related to your business, covering sales invoices, purchase receipts, service invoices, and payroll details. This step is crucial to ensure an accurate and detailed declaration.

  • Employee information:

If your company has employees, ensure you keep updated records of salaries, withheld taxes, benefits, and any other relevant information. This contributes to efficient management of your tax obligations.

  • Employer identification number (EIN):

Obtain an Employer Identification Number (EIN) for your company. This number is essential for meeting tax requirements and is equivalent to the SSN but oriented toward your business entity.

  • Support for applied withholdings:

Retain documents supporting withholdings applied in the USA and abroad. These withholdings can be used as a tax credit in your company's tax declaration. It is a fundamental part of successfully navigating processes related to business taxes.

  • Financial reports:

Include financial reports such as financial statements, balances, and profit and loss accounts in your documentation. These reports provide a comprehensive view of your business's financial health.

  • Updated ownership composition:

Keep the ownership composition of your company updated, identifying partners and their respective percentages of participation. This information is vital for complying with tax and legal requirements.

businessman seeing good results after filing his U.S. corporate taxes

Personal taxes:

Complementing business tax filing, don't forget that personal filing is a crucial aspect of your financial stability and compliance with tax responsibilities. In fulfilling this obligation, it is essential to consider the following requirements to prevent errors in the process:

Essential Documentation for Personal Taxes in 2023

  • Bank statements for the year 2023:

Collect bank statements from all your personal accounts in the U.S. during the year 2023. These will form the basis for supporting your personal transactions.

  • Additional income information:

If you received income from investments, property rentals, unemployment benefits, bank interest, or other sources, gather the necessary documentation supporting these income streams.

  • U.S. tax identification number:

Ensure you have an SSN or ITIN to fulfill your personal tax obligations in the U.S.

  • Property tax payments:

Retain proof of property tax payments if you are a property owner. These payments can be deducted from your tax declaration.

  • Forms W-2s or 1099s:

If you were employed in the U.S., have your Forms W-2s or 1099s ready to facilitate the declaration process.

  • Deductions and credits:

To claim deductions, organize documentation supporting them, such as charitable donation receipts, medical bills, and personal expense receipts.

  • Recorded withholdings:

Keep records of withholdings made, whether in the USA or abroad, to use them as a tax credit in your personal declaration.

business entrepreneurs who have completed their U.S. corporate income tax returns

Important note:

In both cases, whether for business or personal taxes, ensure your company's physical notification address in the U.S. is up to date. This detail may go unnoticed but is crucial for receiving official tax-related communications.

Preparing the right documentation is key to the success of your tax declaration. By following these steps and keeping your records updated, you will be on the right path to meet your tax obligations in the year 2023. At Prodezk, we provide 360-degree guidance, understanding your needs, and supporting you at all times. Trust us to optimize your approach to business taxes and ensure efficient financial management. Contact us now and receive 1 free consultation.

Juan Felipe Cubillos
SEO Specialist

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