Top 3 Tax Filing Strategies For Small Business Owners

Tax season can get stressful, and it can be even worse for new business owners. If you have recently opened a small business and would like some tax advice, Taurus CPA Solutions is here for you. 

 

Here are our top three filing strategies for small business owners:  

1. Claim Tax Credits 

 

There are several tax credits available to small business owners, but many do not know to take advantage of them. Here are a few examples:

 

• Pension Plan Startup Cost Credit: If your small business is just getting started and has created pension plans for your employees, you may qualify for a tax credit of up to $500. 

 

• Child Care Credit: Does your business pay your employees’ child care expenses? You’re in luck! This tax credit will pay back 25% of yearly child care expenses up to $150,000. Be sure to see if your business qualifies. 

 

• Work Opportunity Tax Credit: Small businesses who have disabled people or veterans on their staff might be able to claim a tax credit of up to 40% of the first $6,000 of qualified wages paid. 

 

• Healthcare Tax Credit: Businesses with 25 or fewer employees might be eligible for this tax credit if they pay more than half of employee healthcare premiums, and their employees make less than $50,000 a year. 

 

2. Deduct Charitable Donations & Healthcare Premiums 

 

If your small business makes a considerable amount of charitable contributions throughout the year, your business can actually deduct these donations from your taxes. While they cannot be deducted as business expenses, they can be listed as an itemized deduction. 

 

Also, if your small business offers individual health plans with premiums paid out of pocket, you might be able to deduct the expenses from your business taxes. 

3. Stay Informed Of All Possible Deductions

 

While some might have been aware of the strategies above, other miscellaneous deductions are way lesser-known. For example, ATM card fees for your small business. Did you know that these can be deducted? It’s true! Businesses can also deduct other expenses such as out-of-town travel and more. 

 

Tax filing strategies for small business owners should be utilized as much as possible. When you work with Taurus CPA Solutions, you can be sure that we will always do the best job in filing your small business taxes. 

 

If you’re looking for a firm that will focus on your individual needs, and always treat you like a client who matters, look no further. Taurus CPA Solutions is large enough to offer a full range of professional services but small enough to give you the individual attention you deserve.

 

Visit our website, or give us a call at 410-465-4600. Also, be sure to follow us on Facebook and LinkedIn to keep up with our latest news.