Small business tax planning tips

As a small business owner, understanding the intricacies of tax credits can significantly impact your bottom line. Small business tax credits offer a direct reduction of your tax bill, providing a dollar-for-dollar decrease in your tax liability. This ultimate guide will help you navigate the most valuable tax credits available, ensuring...

Backup withholding is a precautionary tax measure enforced by the IRS (Internal Revenue Service) to ensure that taxes are collected on certain types of income. This mechanism is crucial for income types where regular withholding is not typically enforced, such as interest, dividends, and independent contractor payments. In this article,...

For small business owners contemplating the appropriate legal structure for their enterprise, the S corporation offers a blend of pass-through taxation and corporate liability protection. This entity type, recognized under Subchapter S of the Internal Revenue Code, is designed to support small businesses by avoiding the double taxation...

You might want to delay your business tax filing for many reasons. It could be due to your busy business season coinciding with tax season, or perhaps you're still gathering all the necessary documents for filing your return. If this is the case, you can use Form 7004 to ask the IRS for a business tax extension. It will give you additional...

If you've been wondering whether you can rent your home to your business, the Augusta Rule could be the answer. This tax strategy offers a dual benefit: it allows you to reduce your business taxes while earning some tax-free income as a homeowner. Although the Augusta tax rule was not created for business taxation, it still applies. In this...

Choosing the right business structure is a pivotal decision for entrepreneurs, impacting everything from daily operations to tax obligations. In this article, we delve into the nuances of LLCs (Limited Liability Companies) versus sole proprietorships, with a special focus on tax considerations. Understanding the tax implications of each...

The IRS has announced an expansion of the Earned Income Tax Credit (EITC). Enacted in 1975, the EITC provides support to millions of low to moderate-income workers and families and is regarded as one of the federal government's largest antipoverty programs. The amount a taxpayer receives depends on their income, filing status, and the number...

2021’s economic environment has been extraordinary for many U.S. taxpayers. 2021 has also been unusual in terms of new tax laws. These new rules may affect many taxpayers who wouldn’t ordinarily file a 2021 tax return. Income dollar limits alone can determine who must file a tax return. Why you need to file a 2021 tax return often turns on...

Did you know that you can reduce your tax bill either by taking itemized deductions or standard deductions? Wondering which one to choose? This article explains both of them in detail and highlights the difference between standard and itemized deductions. You will also find out what factors to consider when deciding whether to choose itemized or...