Individual taxpayers typically get a tax refund each year.
However, it isn’t very common for small businesses to get a tax return.
Different types of businesses
Individual taxpayers get a tax refund after paying more than their contribution for either federal or state taxes. However, tax refunds for businesses are not that common. It depends on what type of business you have. But most businesses aren’t paying income taxes directly. Read more about it here.
A business that is a sole proprietorship dictates that the owner reports the business income on their personal tax return. S corporations act like partnerships when filing. C corporations are the only businesses that could get a tax refund.
C corporations are different because their profits are taxed separately from their owners.
Although only C corporations may get a tax refund, other businesses may be eligible for a qualified business deduction (QBI) deduction.
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