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April 10, 2024
Question

Should taxes be paid while whole company on unpaid maternity leave and no revenue during that time?

  • April 10, 2024
  • 1 reply
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Sole proprietor is on maternity leave and no income is being generated for ths duration of this leave. If someone could help me understand how to approach taxes during this time would be greatly appreciated!

1 reply

April 10, 2024

It's good to see you here in the Community space, sdalsheim.

 

A sole proprietorship business is required to pay taxes once a year. If there's no income for a particular year, there's no need to file or pay taxes. However, if you are referring to the leave, and then you have an income during the remaining period, tax filing and payments become necessary.

 

Additionally, if you're ready to submit your taxes, you can do so within your QBO account, supported by TurboTax. There are no subscription issues to worry about, as you only have to make a payment when you file a tax.

 

Here's how:

 

  1. Go to Taxes, and click the Year-end filing tab.
  2. Select Start Taxes and Continue.
  3. You'll be asked how your business is set up for taxes. Click Sole proprietor to use the Schedule C form for self-employed filers.
  4. Type your personal information. Then select Continue.
  5. Afterward, you asked for information related to Federal tax returns and clicked the Add my income to continue.
  6. Select Yes or No if you're asked if you have any self-employment income or expenses.
  7. Click Continue when you're ready.
  8. You have a chance to review Federal tax return filing. Select Check my info.
  9. Next, you'll file state taxes. Click Let's get started.
  10. Lastly, you’re asked to complete three more steps to complete your filing: Select Start to review your order, and your tax payment info, then file your returns.

 

If you have other concerns about taxes, you can always leave a comment below.