Section 179 Deduction
Definition
An IRS provision allowing businesses to deduct the full purchase price of qualifying equipment and software in the year of purchase, rather than depreciating over time. HelloBooks includes a Section 179 calculator.
Related Terms in US Tax
Form 1099
An IRS information return used to report various types of income other than wages. 1099-NEC is for non-employee compensation ($600+ to contractors). Businesses must file by January 31. HelloBooks tracks contractor payments for 1099 reporting.
Form W-2
An IRS form reporting wages paid to employees and taxes withheld. Employers must provide W-2s to employees by January 31 and file copies with the SSA.
Sales Tax Nexus
The connection between a business and a state that requires the business to collect and remit sales tax. Nexus can be physical (office, warehouse) or economic (exceeding revenue/transaction thresholds). HelloBooks includes a nexus calculator.
Estimated Quarterly Taxes
Quarterly tax payments made by self-employed individuals and businesses to cover income tax and self-employment tax. Due April 15, June 15, September 15, and January 15.
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