Simply put, we all have to pay taxes, whether we like it or not. If you are a business owner, filing your taxes can get especially complicated. Good news is...it’s not too late to make some smart tax moves for this year. Deciding on the right strategy for you and your business depends on your income, as well as a number of other personal circumstances, so you might want to consult a tax professional.
Deferring Income Taxes
Deferring income taxes relies on legal strategies that let you pay taxes in a future year on money that you earn this year. Just about anyone can do this with help from a tax professional. Deferring your taxes lets you keep your money longer, and the longer you have your money, the more opportunities you have to put it to work for you. Perhaps investing your money instead of turning it over to the government right away could do wonders for your business.
Writing Off Expenses
There are many aspects of a business that can be deducted from your taxes: mileage, insurance, supplies, entertainment, etc. Take advantage of them!!! Take a look at a dozen deductions for your business. Don’t cheat yourself out of these, no matter how successful you become (or currently are)! If you have made a charitable donation, that can be deducted as well. And there still is time to donate to your favorite charity...and write it off. Take every legal deduction you can for yourself, and for your business.
Carry Forward the Health Credit
Businesses that employ fewer than 10 full-time employees with average wages under $25,000 per person get the most benefit. The healthcare tax credit is offered on a sliding scale to small businesses. Talk to your tax professional to see if you’re eligible, or use form 8941 to calculate your eligibility for the credit. If your business did not owe taxes in that year, you may be able to carry the credit forward. If a remainder of the tax premium exists, you can claim business expenses against it.
The South Sioux City Area Chamber of Commerce is dedicated to promoting growth and prosperity to our local businesses. We want you to be part of our community and join today!
Learn more about joining at the South Sioux City Chamber of Commerce or call us at (402) 494-1626 to see how we can help you grow your business through networking and other activities.