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Business deductions and tax breaks
• 30.10.24
Form 8881: tax credit for small employer pension plan startup costs
A retirement plan is one of the most valued employee benefits. The Employee Benefit Research Institute (EBRI) found that having access to a retirement savings plan through an employer greatly contributes to workers' feelings of financial security.
Still, 43% of private-sector small businesses do not provide retirement benefit plans to their...
• 13.09.24
Form 8882: Guide to employer-provided childcare tax credit
Competitive compensation is not enough to attract top talent. Businesses should now consider providing attractive employee benefits to hire and retain highly skilled professionals.
If you have employees with young children, employer-provided childcare is one of the benefits that they might highly value. The IRS recognizes the importance of...
• 05.09.24
Form 8846: FICA tip credit for employers
If you own a bar, restaurant, or food delivery service, you may have encountered the challenge of managing and reporting your employees' tips.
Even though tip income is not part of the wages you pay your workers for their regular job duties, it is still considered taxable. As an employer, you're responsible for paying income taxes on your...
• 12.08.24
Is rent tax deductible? Exploring tax deductions and credits for renters
Renters often wonder whether their rent payments can be deducted from their taxes.
While the federal government does not generally allow rent deductions, there are circumstances and state-specific provisions that can offer tax benefits to renters.
This article will delve into the various scenarios under which rent might be deductible, the...
• 05.08.24
Complete guide to the R&D tax credit for small businesses
The research credit helps millions of small businesses reinvest in their operations, hire staff, and fund investigations by offsetting income and payroll tax liabilities.
The credit can provide you with much-needed funding to support your research activities and drive your business growth by covering up to 20% of qualifying research...
• 24.07.24
Form 8941: Small Employer Health Insurance Premiums Credit
Navigating the complexities of tax credits can be daunting for small business owners. However, understanding and utilizing Form 8941, the Credit for Small Employer Health Insurance Premiums can provide significant financial benefits.
This credit is designed to encourage small employers to offer health insurance coverage to their employees by...
• 24.07.24
How to use Form 4136: Credit for Federal Tax Paid on Fuels
Form 4136 is a valuable tool for businesses that pay federal excise taxes on fuel. By accurately completing this form, you can claim credits that directly reduce your tax liability. This guide will walk you through the essentials of Form 4136, from understanding who qualifies to the step-by-step process of filing the form.
What is Form...
• 10.07.24
What is the general business credit?
If you run a small business, effective tax planning can help you lower your tax bill and avoid unexpected taxes. The US government offers several tax deductions and credits to help you keep more of your hard-earned money.
One of the most important is a general business tax credit. It is a collection of credits encouraging specific business...
• 08.07.24
Work Opportunity Tax Credit for employers and employees
The Work Opportunity Tax Credit (WOTC) is a federal tax credit designed to encourage employers to hire individuals from groups with employment barriers.
The Work Opportunity Tax Credit delivers financial advantages for small businesses and plays a crucial role in fostering workplace diversity. It helps businesses create more inclusive work...
• 17.05.24
Understanding the self-employed health insurance deduction
Navigating taxes as a self-employed individual can be complex, particularly when it comes to deductions.
One of the most valuable deductions available is the self-employed health insurance deduction, which allows you to deduct 100% of the premiums you pay for health insurance.
This deduction can significantly lower your taxable income,...
• 22.04.24
Business travel tax deductions: maximizing savings on the go
As a professional traveling for business, understanding the nuances of business travel tax deductions can significantly impact your financial planning and tax obligations.
This guide will delve into what constitutes a deductible business expense, how to distinguish between personal and business travel, special considerations for domestic and...
• 16.04.24
Commercial clean vehicle credit for small businesses
The transportation sector is the US's largest source of greenhouse gas emissions. Transforming your small business operations into more eco-friendly practices is crucial to decreasing the nation's carbon emissions and reducing your business tax bill!
Starting January 1, 2023, businesses and organizations can purchase new EVs and FCEVs and...
• 29.03.24
Simplified home office deduction for businesses and freelancers
In the evolving landscape of modern work, the home office has evolved from a convenience to a necessity for many small business owners and freelancers.
With this shift, understanding the nuances of tax deductions related to home office use has become paramount. The home office deduction stands out as a significant opportunity to reduce...
• 29.03.24
California AB150: tax credit for flow-through entities
The State of California introduced the California Assembly Bill (CA AB150) in response to the federal Tax Cuts and Jobs Act (TCJA) of 2017. California Assembly Bill (2021) helps reduce the effect of the $10,000 limit on state and local tax deductions for certain businesses.
This article overviews AB150 California and how it can help small...
• 28.03.24
Form 8849: A comprehensive guide to claiming excise tax refunds
In the world of tax filing and refunds, Form 8849, "Claim for Refund of Excise Taxes," occupies a unique place. This form enables taxpayers to request a refund for certain overpaid excise taxes – a crucial financial relief for many.
Excise taxes, while often less visible than income or sales taxes, are levied on specific goods, activities, or...
• 27.03.24
Home office tax deduction: eligibility, rules, and calculation methods
In recent years, the landscape of the traditional workplace has dramatically shifted, with remote work becoming an increasingly prevalent part of professional life.
This change has been accelerated by technological advancements and, more recently, by global events such as the COVID-19 pandemic.
As a result, the home office has transformed...
• 27.03.24
Form 4952 instructions: investment interest deduction
The baseline rule is not to claim a tax deduction for investment expenses and fees – generally, investment expenses are not tax deductible. Such expenses include managing your stock or bond portfolios and broker or custodial fees.
One exception from this rule is the investment interest expense deduction. You can get a tax break if you borrow...
• 26.03.24
Small business tax deductions: maximizing your benefits
"A well-informed approach to tax deductions can significantly alleviate the fiscal burden on small businesses, allowing for greater financial flexibility and growth potential" - seasoned CPA
Tax deductions, when utilized effectively, can reduce taxable income and thus lower the overall tax liability, providing a much-needed reprieve to...
• 22.03.24
Mastering IRS Form 8829 for home office deductions
Form 8829, Expenses for Business Use of Your Home, performs as a critical asset for those seeking to optimize their tax deductions.
This form not only facilitates the process of claiming deductions for home office expenses but also underscores the importance of adhering to IRS guidelines to maximize these deductions legitimately.
The...
