#1: Deductions, deductions, deductions
Make sure you maximize all your available deductions by reviewing all of your business expenses with your tax advisor. This includes employee salaries, home offices, benefit programs, travel, business entertainment, utilities, advertising and marketing, repairs, and so much more.
#2: Hiring
The government incentivizes business owners to hire employees from select groups that historically have faced barriers to employment. The Work Opportunity Credit goes up to $2,400 for each new, qualified full-time hire. If you're looking to expand your business, this could be an excellent conversation to have with your CPA and your HR team.
#3: Research & development
Startups and other innovative businesses may qualify for a payroll tax credit for increasing their research activities. Still, many small businesses miss out on this incentive. Make sure you're working with a CPA who understands the R&D tax credit and what it takes to qualify.
#4: Health insurance
If you’re looking to add new employee benefits to attract and retain talent, talk with your CPA about the tax credit for small employer health insurance premiums. You may be able to get a tax credit for up to 50% of the costs you pay for your employees' premiums for the first two years.
#5: Electric vehicles
The government wants more people to switch to plug-in electric vehicles, so it is offering tax credits ranging from $2,500 to $7,500 per vehicle. There are various rules and restrictions, so you'll want to consult your tax advisor before you purchase.
When you change your facts, you change your tax. This list is just scratching the surface. There are tons more incentives that can legally reduce your taxes. You just need to have the right information to set you and your business up for success. This is where TFW Advisors® and our proven tax reduction system can help.
Schedule a call with our team today to learn more about how entrepreneurs like you are making way more money and paying way less tax.