Year-End Tax Report

Prepared for: [Client Name]

Prepared by: [Bookkeeper Name]

Date: April 6, 2025

Tax Year: 2024

Business Overview

Business Name: [Client’s Business Name]
Business Type: Sole Proprietorship
Tax ID (EIN or SSN): [Client’s Tax ID]
Reporting Period: January 1, 2024 – December 31, 2024

Income Summary

  • Gross Sales/Revenue: $85,000
  • Product Sales: $60,000
  • Service Income: $25,000
  • Returns/Refunds: ($2,000)
  • Net Income: $83,000

Note: Reported on Schedule C.

Expense Summary

  • Advertising: $3,500
  • Office Supplies: $1,200
  • Rent (Business Space): $12,000
  • Utilities: $2,400
  • Equipment (Non-Depreciable): $1,800
  • Professional Services: $2,000
  • Travel: $1,500
  • Meals (50% Deductible): $800 ($400 deductible)
  • Total Business Expenses: $24,400

Note: Reported on Schedule C.

Net Profit

Net Profit (Net Income - Total Expenses): $83,000 - $24,400 = $58,600

This is your taxable income, subject to self-employment tax and income tax.

Self-Employment Tax Estimate

  • Self-Employment Taxable Income: $58,600
  • SE Tax Rate (2024): 15.3%
  • Estimated SE Tax: $8,965.80
  • Deductible Portion (50%): $4,482.90

Note: Calculated on Schedule SE.

Depreciation

Item: Office Computer

  • Cost: $2,000
  • Depreciation Method: 5-Year MACRS
  • 2024 Depreciation: $400

Total Depreciation: $400

Note: Reported on Form 4562.

Estimated Tax Payments Made

  • Q1: $2,000
  • Q2: $2,000
  • Q3: $2,500
  • Q4: $2,500
  • Total Paid: $9,000

Tax Filing Checklist

  1. Form 1040: U.S. Individual Income Tax Return
  2. Schedule C: Profit or Loss from Business
  3. Schedule SE: Self-Employment Tax
  4. Form 4562: Depreciation and Amortization (if applicable)
  5. Supporting Documents: Income records, expense receipts, bank statements, mileage log

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