J.K. Lasser's Small Business Taxes 2023

CHAPTER 30Other Taxes

• State Income Taxes
• Employment Taxes
• Self‐Employment Tax
• Additional Medicare Taxes for Individuals
• Sales and Use Taxes
• Excise Taxes

Alert

At the time this book was published, Congress was considering tax changes that could affect 2022 tax returns and planning for 2023. Check the online Supplement in February 2023 at www.jklasser.com or www.BigIdeasForSmallBusiness.com to see what changes have been enacted and when they become effective.

Federal income taxes may be your primary concern and your greatest tax liability, but as a business owner, you may have other tax obligations as well. You may owe state income and franchise taxes, employment taxes, sales and use taxes, and excise taxes.

Estimated taxes, which are not a separate tax but rather a way in which to pay taxes, are discussed in Chapter 31.

For more information about various other taxes, see IRS Publication 15, Circular E, Employer's Tax Guide; IRS Publication 15‐A, Employer's Supplemental Tax Guide; IRS Publication 15‐B, Employer's Guide to Fringe Benefits; and IRS Publication 510, Excise Taxes.

State Income Taxes

You may owe state income taxes on your business profits in each state in which you do business. Your obligation does not depend on where the business is set up. For example, if you incorporate your business in Nevada but operate in California, you owe income taxes to California, the state in which you do business. (And you may owe a tax or fee to Nevada as well.)

Generally, ...