Tax Tips for Small Businesses

Do you own a small business? If so, then you should know that your tax situation is quite a bit different from that of the average taxpayer. However, this isn’t necessarily a bad thing. In fact, in many cases, you could enjoy a lot of benefits and deductions that other people don’t get. The key is to follow a few basic tax tips and, ideally, to seek the help of a qualified accountant used to helping small business owners like yourself.   

Consider the Health Care Tax Credit

Many small business owners are eligible for the health care tax credit, which can offer great savings.

In order to qualify, you’ll need to have fewer than 25 employees working for you full-time. You’ll also need to pay an average salary lower than $50,000 to those employees and pay half of their health insurance premiums.

If you can meet those simple qualifications, however,- and a lot of small businesses do- you can claim and enjoy this credit.

Deduct Charitable Expenses

Is your business a charitable one? Maybe you contribute to the community through volunteer work? Or, perhaps you do things like donate money to local organizations?

Whatever the case may be, if you’re giving to others, you can give back to yourself come tax time by deducting those charity-related expenses. Just be sure to keep careful track of them in case you ever face an audit.

Take Advantage of the Work Opportunity Credit

Does your small business employ veterans or disabled individuals? If so, you might qualify for this great credit, which will allow you to deduct as much as 40% of the first $6,000 paid in wages to a member of such a group.

Be sure to carefully read and understand the eligibility requirements for this credit before you take advantage, however.

Remember, taxes can be tricky, especially for small business owners. So, before you do anything, unless you’re absolutely sure, speak with a qualified accountant. After all, you want to make sure every tip you follow- and these are just a few- helps you instead of backfiring!