What Types of Taxes Must I File as a Washington-Based Therapist?

What Types of Taxes Must I File as a Washington-Based Therapist?

Tax law treats business owners very differently from employees. In the great state of Washington, many employees only have to worry about federal taxes because there’s no personal state income tax. Sure, there’s sales tax, but there’s no requirement to keep track of sales tax that you pay personally — you can just use the IRS sales tax estimator*. *(It’s still a good idea to keep receipts for major purchases such as a car, house, or boat because you may be able to add that sales tax on top of the estimated amount on your 1040 for a larger deduction.)…
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Breaking News: Changes to the WA State Workforce Education Surcharge

Breaking News: Changes to the WA State Workforce Education Surcharge

Do you remember last November, when the Washington State Department of Revenue sent out a notice to service companies mentioning a B&O (AKA excise) tax surcharge? We do. There has been a recent amendment to this law. If your service organization makes less than $1 million in gross taxable income, we have good news for you: Your surcharge was repealed retroactively, so it never actually went active! Instead of owing an additional B&O surcharge, you will continue to pay the same rates you did last year (barring further legislation). If your organization made $1 million or more in gross taxable…
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When are Business & Occupation(B&O) Taxes Due?

When are Business & Occupation(B&O) Taxes Due?

https://youtu.be/N3Giny5D4lY When you think of B&O taxes, does it make you think of Washington State taxes? (Personally, it makes me think of the B&O Railroad from Monopoly). It’s important to realize Business & Occupation taxes are not just state taxes but are collected as part of city, county, and state taxes. Read more about the new Surcharge here. City Taxes Cities generally tax businesses on revenue. In the interest of brevity we will center this section around the city of Seattle, which uses the FileLocal website for B&O taxes, though several nearby cities also use the FileLocal website. Seattle businesses…
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