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Form Rev 41 0056 - Small Business B&o Tax Credit Worksheet - Washington Department Of Revenue Page 9

Washington State Department of Revenue

Instructions for Completing the Combined Excise Tax Return

SECTION I State Business and Occupation

What is the Business and Occupation (B&O) Tax?

The state B&O tax is a gross receipts tax. It is measured on the value of products, gross proceeds of sale, or gross income of the business.

Washington, unlike many other states, does not have an income tax. Washington's B&O tax is calculated on GROSS income from activities. This

means there are no deductions from the B&O tax for labor, materials, taxes, or other costs of doing business.

Learn more about B&O

tax...

Lines 1-16

Locate the proper

tax classification

for your business activities on lines 1-16.

In column 1, on the line for the appropriate B&O tax classification, write the gross income resulting from your Washington business

activities.

You may qualify for deductions. Write the total deductions in column 2. If you have no deductions, write 0 in column 2. Deductions must

be itemized on the

deduction

detail, pages 3 & 4.

Subtract column 2 from column 1. Write this amount in column 3. This is your taxable amount.

Multiply each taxable amount in column 3 by the rate in column 4 and write this amount in column 5. Total the amounts in column 5, lines

1-16, and write this amount in the Total B&O Tax box.

Table of Contents

Form Rev 41 0056 - Small Business B&o Tax Credit Worksheet - Washington Department Of Revenue Page 9