Small Business Tax Credits Explained

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Small Business Tax Credits Explained
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• If youre new to the world of small business, you
  may not know that youre entitled to claim tax
  credits that can lower the amount of tax you pay
  to the government. As part of their annual tax
  filing procedure, many different sized businesses
  file for tax credits and tax deductions each
  year continue reading to find out more
• Small business tax credits and why they were
  created
• When individuals and businesses perform acts of
  varying sizes, such as strengthening the economy,
  combating climate change and helping to improve
  the lives of others, global governments reward
  them with tax credits.

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• Reducing the actual tax small business owners pay
  and offered as an incentive for activities deemed
  beneficial, its important that small businesses
  check which credits they might be eligible for,
  as they can make a significant difference to
  their bottom line.
• To put this in simpler terms, for every dollar
  you gain in credit, your tax is reduced by a full
  dollar, and this can be immensely helpful in
  enabling small businesses to recover some of
  their running costs and cling on to much needed
  capital.

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• Adding up quickly, lets say your small business
  owes 15,000 in taxes, but you make a claim for
  5,000 in tax credits you can subtract that
  entire amount from your tax bill and reduce it to
  10,000!
• Why it pays to understand your tax credits
• If you want your small business to succeed and
  prosper, then it really does pay to understand
  tax credits and know which ones you might be
  eligible for, as doing so can save you serious
  dollars. The best way to get the most from your
  small business tax credits is to work with a tax
  specialist, who will make it their business to
  get the best results for your business.

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• So, whats the difference between tax deductions
  and tax credits?
• Small business owners receive a tax deduction for
  all business-related expenses they claim on their
  taxes, ranging from rent and supplies, to travel
  and business-related subscriptions. Reducing your
  taxable income (depending on your tax bracket),
  every dollar of deductions reduces your total tax
  bill by a percentage of that deduction, meaning
  that as your taxable income rises, your tax
  deductions become more valuable. If your business
  is in the 15 bracket, then every dollar you
  deduct reduces your tax bill by 15 cents, and if
  youre in the 35 bracket, that same deduction
  reduces your bill by 35 cents.

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• Tax credits, on the other hand, are far more
  valuable especially for taxpayers in lower
  brackets as they slash your tax by a full
  dollar for every dollar of credit.
• To find out what tax credits your small business
  might be eligible for, schedule an assessment
  with a tax professional and start saving money on
  your tax bill, today.

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• At Heyer Associates, we proactively assist our
  individual and small business clients in meeting
  their goals. Our key area of focus is ensuring
  that our clients remain compliant with federal
  and state tax laws by providing them with high
  quality accounting and tax services Miami Beach.
  If you are looking for individual tax preparation
  in Miami Gardens, Heyer Associates would be a
  right option.