in the first year of a new buiness do you get money back for taxes?

Question

taxes new buiness

Answer 1

Businesses pay income taxes based on profits.

People working for the new business get refunds on the same basis as any other employee of any other company.

Being new doesn't change either situation.

Answer 2

I am assuming your business is a sole proprietorship, although most of the following applies to other types of businesses.

The taxes you owe are based on your net profit or loss. If you have a net profit, you will owe self-employment tax even if you have made too little to owe income taxes.

If your net profit is low enough to qualify for the Earned Income Credit or Additional Child Tax Credit, you may get a refund even if you do not owe any income taxes. This is true whether your income is from a business or from a job.

If your business had a net loss, then you will not owe self-employment taxes. If there is other income on the tax return, the business loss offsets that other income and reduces your taxable income. If there is a negative AGI, you may be able to carry this amount to another year (back or forward) to offset income in the carryback or carryforward year.

Answer 3

That depends.

You can only "get back" money if you've paid in AND made less money than you originally planned on making when making your Estimated Tax Payments. If you've done neither of those, your business itself will not get back money. The government will not give it to you unless you already gave it to them.

There is one exception. If you and/or your spouse have a regular job that withholds taxes, you could get some extra money back from the taxes withheld from the paychecks if your business shows a loss on your tax return.

Answer 4

The only way you'd get money back is if you paid in more for your quarterly payments than you ended up owing for the year.

Answer 5

If you are a new business owner your days of getting a tax return are over.