Filing WA State Taxes / Just the Basics!

Hello there,
The post below gives the most stripped-down basics for filing WA state taxes. If you’d like to read more detailed posts, and see some screenshots, click on these links: for Service Providers and Retail / Combo.

Also, I want to share this GOOD NEWS right upfront. Once you know what you’re doing, this business chore only takes 5 - 20 minutes. It will take way longer to learn about it, than to actually do them….

:) Jenny Girl Friday

Due for you IF: 
You have a WA state Business License

Estimated Time: 
5 - 10 minutes - Filing
0.5 - 2 hours - Prepping

How: 
Online with MYDOR

Due Dates:
Businesses are assigned annually, quarterly, or monthly

Annual Due Date
• April 15

Quarterly Due Dates
• Apr 30
• Jul 31
• Oct 31
• Jan 31

The Tax Form is called: 
Combined Excise Tax Return

What everybody will need: 

__ MyDOR / SAW - Log-in and Password
__ Gross Sales Total - per time period

Annual Filers
• From January 1 - December 31

Quarterly Filers
• Q1 - January 1 - March 31
• Q2 - April 1 - June 30
• Q3 - July 1 - September 30
• Q4 - October 1 - October 31

Some of you: 
__ Subtotals of Gross Sales by Category

And, if you Retail, you may need:

__ Retail Sales Subtotal
__ Retail Sales out-of-state
__ Retail Sales where Tax is collected by a "Facilitator"
__ Sales Tax Paid at the Source


Types of Tax:  

  • B&O (Business & Occupation Tax)

  • Sales Tax

  • Use Tax

Note:  These are all types of “Excise” tax. That is why the form is called “Combined Excise Tax Return” because it’s asking about all three - and some others - in one, combined form.

B&O Tax: small businesses will receive a tax credit. So, if you gross under about $55K, you will not have to pay any tax. As your income goes up above that number, the tax credit will get smaller, then disappear

Sales Tax: applies to selling products or retail services

Use Tax: applies if your business purchased items/tools outside of WA state

How do I know if I file ANNUALLY or QUARTERLY with WA state?

Quick Answers

Your filing schedule is assigned to you, after you register for a business license. Here are ways to find out your schedule.

  • Look for a letter you received from the Washington State Department of Revenue (DOR) - after you registered for your business license. It will tell you your schedule.

  • Call the DOR to ask them. They’re usually very friendly. It helps to have your UBI on hand, if you know where that is. (UBI is your WA state business number.) 360-705-6705

  • Log into your DOR account, navigate to Manage Returns, and see what it says there. If you’re on the Annual schedule, it will say that. If you’re quarterly or monthly, I believe it just shows the date that it’s due. So you can easily infer the schedule.

Some context and FAQs

Like all states, WA relies on taxes to fund programs. It collects all of these taxes through the Department of Revenue. There are two main categories. One, you’re already familiar with - sales tax. If your business provides any retail products or services, you’ll be required to collect and submit these taxes. The 2nd category is taxing businesses in a few different ways. The most common of these is Business and Occupation tax. These dollars help the state support and monitor businesses, to be safer for consumers, etc.

The state needs to collect its taxes on a regular basis. So, your filing schedule - annually, quarterly, monthly - is based on your projected taxes. If you’re going to earn a lot, and collect sales tax, then you’ll likely be put on a quarterly or monthly schedule.

If you earn less and/or are service only (no sales tax), then you’ll be put on an Annual schedule.

This is all based on your Gross Sales (all the money you collect from customers/clients … before business expenses). And, if you collect sales tax or not.

I heard that I have to send in Estimated Quarterly Tax Payments? Is this the same or different?

This is a super common question. This different. When you have a business, you must report to all levels of government: city, county, state, and the IRS. It's easy and reasonable to get them mixed up!

"Estimated quarterly tax payments" are part of paying your federal taxes to the IRS. These are estimated based off the profit your business is likely to make. They are due four times a year: Jan 15, Apr 15, Jun 15, Sep 15. Click here to read more.

If the state says that you must report quarterly, that is for state taxes, which include: B&O, sales tax, use tax. These are calculated from your actual sales. 

I was assigned Quarterly payments. Ugh. Why is that? Can I change it?

Basically, the state wants to collect tax money on a regular basis. If you have a Retail business (meaning you'll be collecting sales tax) and/or if it looks like your income will be high, they will assign you to making reports quarterly. 

♥ Please don't worry too much though! Once you know how to make reports to the state, it only takes a few minutes!

If you want to change it to reporting annually, in the past, the only way was to call the state in January. If your income is low enough, they'll make the change. That number is: 360-705-6705. It's possible that there are new rules, so you might try calling soon if you want to check.

You talk about Making Reports, Paying Taxes, Submitting Taxes, are these all the same thing?

Great question. They're slightly different. I like to think about things at the most basic level first. Once you have a business, you are required to Make Reports to the state. Sometimes, if you're very small, and/or do service work, then you won't owe any money. Yay! BUT, you still have to make the reports so the state knows this. This is step one of the process.

Paying taxes are when your business is actually being taxed. That's the B&O tax, and Use Tax. This is based off a percentage of your Gross Sales, and any purchases out of state. The money comes out of your pocket.

Submitting taxes is different. This is Sales Tax that you've collected from your buyers. It is tax based on their purchase. It comes from their pocket. You're simply the carrier of that money.

How can I get more info + help with this?

Lots of ways! 

♥ Get help from the state DOR. They offer workshops, online tutorials, and even consulting! Click here to see more info at DOR.wa.gov. 

♥ If you currently work with an accountant or bookkeeper, check with them.

♥ Get 1-on-1 help with Yours Truly. Sign up for a One-Time consult. We can work 1-on-1, or you can bring a friend to split the fee.

♥ Join me for Book$ Club! A monthly event, where self-employed folks gather to work on bookkeeping and biz chores - just like this one. In a Happy Hour setting. I provide 1-on-1 help, as time allows. And/or, you can ask other folks in the group. Like study hall, but more fun! Click to … Read More … or to Register