logo

UNLOCK VALUABLE BUSINESS TAX CREDITS AND BENEFITS

September 1, 2024

In today’s challenging economic climate, businesses can benefit significantly from tax incentives and sales tax exemptions. However, many of these opportunities go unclaimed due to a lack of awareness or misconceptions about eligibility. Here are some key tax credits and exemptions that your business might qualify for:


1. Statutory Incentives


Certain tax credits are available “as of right,” meaning that if your business meets the necessary criteria, you can claim them on a timely filed tax return without negotiation. These incentives are designed to encourage businesses to engage in specific activities or invest in economically distressed areas.

  • Work Opportunity Tax Credit (WOTC): This federal credit ranges from $2,400 to $9,600 per eligible new hire from disadvantaged groups, such as veterans, welfare recipients, convicted felons, and workers with disabilities. To claim this credit, businesses must complete the necessary paperwork.
  • Research and Development (R&D) Tax Credits: Both state and federal R&D credits may be available to businesses that invest in developing new products, improving processes, or developing internal-use software. The federal credit can be as high as 20% of qualified research expenses over a base amount. Even businesses with no tax liability can carry the credit forward, and start-ups can claim it against up to $500,000 in employer-paid payroll taxes.
  • Empowerment Zone Incentives: Companies operating in federally designated “empowerment zones” can receive tax credits worth up to $3,000 for each eligible employee.
  • Industry-Based and Investment Credits: Various states offer credits to attract certain types of industries, such as manufacturing or film production. Investment credits are also available for capital investments made within state borders.


2. Discretionary Incentives


Discretionary tax incentives must be negotiated with government officials. These benefits are typically offered to businesses that promise to bring economic value to a state or locality, such as creating jobs or boosting revenue.

Discretionary incentives might include income and payroll tax credits, property tax abatements, and even reductions in utility rates.


3. Sales Tax Exemptions


In states with sales taxes, exemptions are often available for certain business purchases. Common examples include:

  • Purchases by retailers for resale,
  • Manufacturers buying equipment, raw materials, or components for use in the manufacturing process,
  • Specific tax-exempt entities, and
  • Agricultural businesses purchasing farming equipment, seeds, fuel, or chemical sprays.


To take advantage of these exemptions, businesses may need to prove eligibility by providing resale or exemption certificates to sellers.


Don’t Miss Out on These Opportunities


Each year, numerous tax credits and incentives go unclaimed simply because businesses are unaware of them or mistakenly believe they’re not eligible. There are many more credits and exemptions available beyond the examples listed here.


To ensure your business receives all the tax benefits it deserves, contact our office for guidance on claiming these valuable incentives and developing a tax strategy tailored to your business’s needs.  CLICK HERE or CALL (412)875-5719

MEDICARE PREMIUMS MAY LEAD TO TAX SAVINGS

September 12, 2024
If you pay premiums for Medicare health insurance, you may be eligible to claim them as an itemized deduction for medical expenses on your tax return. This can also include premiums for “Medigap” insurance and Medicare Advantage plans, which help cover costs that Medicare Parts A and B don't. To qualify, you generally need to itemize deductions, and your total medical expenses must exceed 7.5% of your adjusted gross income (AGI). However, if you're self-employed or a shareholder-employee of an S corporation, you may be eligible to claim an "above-the-line" deduction for your health insurance premiums, including Medicare. This option allows you to receive tax benefits without needing to itemize deductions. It's important to review your options carefully, as Medicare premiums may offer significant tax savings. Contact our office for guidance on claiming medical expense deductions and to develop a tax strategy that fits your individual situation: CLICK HERE or CALL (412)875-5719

UPCOMING TAX DEADLINES: SEPTEMBER/OCTOBER 2024

September 1, 2024
UPCOMING TAX DEADLINES September 16 Individuals : Pay the third installment of 2024 estimated taxes (Form 1040-ES), if not paying income tax through withholding or not paying sufficient income tax through withholding. Calendar-year corporations : Pay the third installment of 2024 estimated income taxes, completing Form 1120-W for the corporation’s records. Calendar-year S corporations : File a 2023 income tax return (Form 1120-S) and provide each shareholder with a copy of Schedule K-1 (Form 1120S) or a substitute Schedule K-1 if an automatic six-month extension was filed. Pay any tax, interest and penalties due. Calendar-year S corporations : Make contributions for 2023 to certain employer-sponsored retirement plans if an automatic six-month extension was filed. Calendar-year partnerships : File a 2023 income tax return (Form 1065 or Form 1065-B) and provide each partner with a copy of Schedule K1 (Form 1065) or a substitute Schedule K1 if an automatic six-month extension was filed. Employers : Deposit Social Security, Medicare and withheld income taxes for August if the monthly deposit rule applies. Employers : Deposit nonpayroll withheld income tax for August if the monthly deposit rule applies. September 30 Calendar-year trusts and estates : File a 2023 income tax return (Form 1041) if an automatic five-and-a-half-month extension was filed. Pay any tax, interest and penalties due. October 10 Individuals : Report September tip income of $20 or more to employers (Form 4070). October 15 Individuals : The last day to file an extended 2023 tax return and pay any tax, interest, or penalties due.

SUMMER BUDGETING TIPS

June 21, 2024
As the summer season approaches, it's the perfect time to not only soak up the sun but also to ensure your finances are in check. Here are 10 budgeting tips designed to help you make the most of your summer while staying on track with your financial goals and objectives. Budget for Vacations: Plan your summer vacations in advance and budget accordingly. Allocate funds for transportation, accommodation, meals, and activities. Consider using travel rewards or loyalty points to offset costs. Book time during shoulder seasons. Save on Energy Costs: As temperatures rise, energy bills can increase. Take steps to save on energy costs by using fans instead of air conditioning, investing in energy-efficient appliances, and turning off lights and electronics when not in use. Plan Affordable Activities: Enjoy the summer without overspending by seeking out free or low-cost activities in your area, such as outdoor concerts, picnics in the park, hiking trails, or visiting local museums and attractions on discounted days. Maximize Outdoor Entertaining: Host budget-friendly gatherings with friends and family by organizing outdoor picnics, barbecues, or potluck dinners. Pool resources, share responsibilities, and enjoy the company without breaking the bank. Review Insurance Coverage: Take time to review your insurance policies, including homeowners, renters, auto, and travel insurance. Ensure you have adequate coverage for summer activities, such as water sports or road trips, and explore opportunities to save on premiums. Summer Job Opportunities: Consider taking on seasonal or part-time employment during the summer months to supplement your income. Look for opportunities in industries such as hospitality, tourism, landscaping, or event planning. Stay on Top of Financial Goals: Use the summer as an opportunity to revisit your financial goals and track your progress. Adjust your budget, savings contributions, and investment strategies as needed to stay on target. Utilize Seasonal Sales: Take advantage of summer sales and promotions to purchase items you need at discounted prices, such as outdoor furniture, sporting equipment, or clothing for the upcoming school year. Plan for Back-to-School Expenses: Start planning and budgeting for back-to-school expenses, including supplies, clothing, and extracurricular activities. Look for sales, coupons, and second-hand options to save on costs. Review Your Investment Portfolio: Use the summer months to review your investment portfolio and rebalance if necessary. Consider any life changes or market developments that may impact your investment strategy and make adjustments accordingly.
Share by: