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30 Small Business Tax Credits You Should Know About

Lendio

Tax Credit Vs. Tax Deduction It’s important to note that these tax credits differ from tax deductions in terms of how and when they’re applied. A deduction is tied to specific expenses, such as supplies and travel , related to your business. Every relevant deduction reduces your taxable income so you will owe less.

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Why It’s Better to Wait Before Claiming Social Security Benefits

Due

It’s just one more hefty deduction taken out of your paycheck — or so it seems. By the way, you might hear the word “ entitlement ” in the context of Social Security benefits, but that simply means that you and your employer have already paid into the trust fund through the taxes deducted from each paycheck.

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Don’t Let Small Business Taxes Ruin Your Day: Use This Guide Instead

Fundera

If you operate a partnership, you’ll have to file an “annual information return” to show the income, deductions, gains, and losses from the business’s operations—but the business itself doesn’t pay any income tax. Know What You Can Deduct on Your Small Business Taxes. The list of small business tax deductions goes on and on.

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The Single Biggest Tax Mistake You’re Probably Making Right Now

Fundera

Usually the solution was to double-check some figures, make sure they weren’t missing any deductions or credits, maybe make an IRA contribution if they qualified and hadn’t done so already. You lose those deductions forever! The answer these hard-working entrepreneurs received each year wasn’t very appealing.

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Small Business Tax Credits: The Complete Guide

Fundera

Fortunately, tax deductions and small business tax credits can help lessen the sting of taxes. Most small businesses are aware of the importance of tax deductions. Claiming deductions reduces your taxable income and helps you save money. Small Business Tax Credits vs. Tax Deductions. You deduct $20,000 as expenses.

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Why You Should Work With Your Kids: Life Lessons (And a Tax Break!)

Fundera

Here’s the rundown on possible tax advantages that might be available to you and your child: Hiring your child under the age of 18 to work for your company is deductible as a business expense—up to $6,300 in wages. But that’s not all: your child will pay no taxes on his earnings by claiming the standard deduction on his taxes.

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The Procrastinator’s Guide to Small Business Taxes

Fundera

The Protecting Americans from Tax Hikes Act of 2015 , however, bumped the deadline for filing with both employees and the government to January 31st, 2017, for both W-2 employees and contractors receiving 1099-MISC forms with compensation listed in Box 7. Make sure you don’t miss possible deductions. Look into an extension.