A lot of small business owners find the process of filing their corporate tax returns to be a very daunting task. Not only can the process be time-consuming and complicated, but the seemingly constant changes to tax laws and regulations make it even more difficult to stay ahead. That’s why it’s important to consult with a qualified tax professional who can stay abreast of the most up-to-date information from the IRS. That’s where the tax professionals at Miser Wealth Partners come in.
What recent tax credits and deductions are available for my small businesses?
Our advisors make it their mission to stay ahead of the ever-changing corporate tax industry. We’ve outlined some of the newest tax credits and deductions available to small business owners below to give you a good idea of what you might be eligible for.
- Employee Retention Tax Credit (ERTC): The Employee Retention Tax Credit was introduced as part of COVID-19 relief measures. It provides eligible small businesses with a refundable tax credit for retaining employees during the pandemic. The credit amount and eligibility criteria have evolved over time, so it’s important to review the specific requirements and consult with a tax professional.
- Paid Sick and Family Leave Credits: Small businesses may be eligible for tax credits related to paid sick leave and family leave provided to employees under the Families First Coronavirus Response Act (FFCRA). The credits are designed to offset the costs associated with providing paid leave to employees affected by COVID-19.
- Qualified Business Income Deduction (QBI): The Qualified Business Income deduction, also known as the Section 199A deduction, allows certain pass-through business owners (such as sole proprietors, partnerships, S corporations, and some trusts and estates) to deduct up to 20% of their qualified business income. The deduction is subject to various limitations and phase-outs based on income thresholds and the nature of the business.
- Research and Development (R&D) Tax Credit: The R&D Tax Credit is available to small businesses that engage in qualified research activities. It provides a tax credit for a portion of the expenses related to eligible research and development efforts. The credit is designed to encourage innovation and technological advancements.
- Work Opportunity Tax Credit (WOTC): The Work Opportunity Tax Credit is available to employers who hire individuals from certain targeted groups, such as veterans, ex-felons, long-term unemployment recipients, and others. The credit provides a financial incentive to employers who give employment opportunities to individuals facing barriers to work.
- Section 179 Expensing: Section 179 allows small businesses to deduct the full cost of qualifying equipment and assets purchased or leased during the tax year, rather than depreciating the costs over time. The deduction limit for Section 179 expensing and the types of assets eligible for expensing can vary from year to year, so it’s important to review the current rules with a tax professional.
- Qualified Opportunity Zones (QOZ) Tax Benefits: Small businesses operating in designated Qualified Opportunity Zones may be eligible for tax benefits. These benefits include deferral, reduction, or elimination of capital gains taxes on qualified investments made within these economically distressed areas.
Please keep in mind that these credits and deductions are subject to change at any time, so it’s in your best interest to consult with a knowledgeable tax professional to make sure you’re as up to date as possible.
Where can I get help with my corporate tax filings in East Tennessee?
Simplifying your corporate tax filings may be only a call or click away. We invite you to give us a call at (865) 281-1616 or click here to set up a meeting with one of our advisors to find out all the ways we can help. Miser Wealth Partners have a true wealth of knowledge regarding tax requirements for small businesses, and we’re standing by ready to help you too.