4 Tax Tips for Small Business Owners

4 Tax Tips for Small Business Owners

If you are a small-business owner, don’t miss these four useful tax tips that can make a big difference for you and your employees. 

Encourage Your Employees to Learn More About the Tax Child Credit

The child tax credit represents a much-needed relief measure geared toward working families, who can receive monthly payments between $250 or $300 dollars per child. The American Rescue Plan includes provisions to deliver these payments to families who make up to  $150,000 for a couple or $112,500 for families with a single parent. Encourage your employees to learn more about this credit that can make a big difference for the financial well-being of their families.

Check if You Qualify for the Home Office Deduction

This measure allows taxpayers to deduct certain home expenses if they work from home. If you are interested in this deduction, keep the following in mind:

  • Employees are not eligible to claim this deduction.
  • There are two basic requirements to claim this deduction: There must be exclusive use of a portion of the home for conducting business on a regular basis and the home must be the taxpayer’s principal place of business.
  • Even if you meet these requirements, be sure to talk with a tax professional to check whether you qualify for this deduction.  

Learn More About the Renewed Work Opportunity Tax Credit

This tax credit is designed to help certified companies that hire people who belong to any of the following ten categories:

  • Temporary Assistance for Needy Families (TANF) recipients,
  • Unemployed veterans, including disabled veterans,
  • Formerly incarcerated individuals,
  • Designated community residents living in Empowerment Zones or Rural Renewal Counties,
  • Vocational rehabilitation referrals,
  • Summer youth employees living in Empowerment Zones,
  • Supplemental Nutrition Assistance Program (SNAP) recipients,
  • Supplemental Security Income (SSI) recipients,
  • Long-term family assistance recipients,
  • Long-term unemployment recipients.

A tax professional can help you certify your company and make sure you meet all the necessary requirements to claim this credit.  

Seek the Assistance of a Tax Professional

The tax framework for small businesses changes constantly. New opportunities for credits and deductions arise every year, but in order to take advantage of them, it is necessary to work with reliable tax professionals who are up to date with the most recent developments in tax legislation. At JT Tax Experts we have the experience and the know-how to limit your liabilities and ensure that you stay compliant with all relevant regulations.

Contact the Experts at JT Tax Services

Do you need help figuring out how to classify your workers or with any other matter related to taxes?  JT Tax Services is here to help! We give you the peace of mind that comes with knowing that you are limiting your liability while staying compliant with all regulations.

We are located in Oxnard, California. Contact us today by email (info@jttaxservices.com), telephone (805-984-8890), or through our social media accounts on Facebook, Twitter, and LinkedIn to schedule a consultation or to learn more about our services.