Tax Credits for Small Businesses

Last updated on September 10, 2012

Small businesses can gain a lot of benefits from tax credits. There are many credits that the government has introduced for taxpayers who run small businesses. According to the number of staff, type of business and other particulars of your business, you can choose the credits you can use when filing your tax returns this tax season.

Disabled access credit can be used if your sale for the previous years was less than $1 million or if you have fewer than 30 employees working for you, you may want to use tax credit for improvements that you made in your business property for fulfilling requirements of the Americans for Disability Act.

Another tax credit that you can recieve benefit from is the work opportunity tax credit. Under it, if you have hired veterans, you can get tax credit of $6,000 to $9,600 depending on whether your company is for-profit or non-profit.

The amount you can deduct in taxes will depend on the amount of wages you are giving to the veteran employees, for how long they were unemployed before you gave them work and for how many hours they work for you. To qualify for the credit, you must have hired the veteran(s) before the end of the year 2013.

Small businesses can now get help from the government to provide health insurance to their employees. The tax credit gives a boost to small businesses who qualify to provide health coverage for their employees.

The IRS explains, “. . . the credit is designed to encourage small employers to offer health insurance coverage for the first time or maintain coverage they already have. In general, the credit is available to small employers that pay at least half the cost of single coverage for their employees.”

Tax credits bring many benefits to owners of small businesses. From the many tax credits made available to taxpayers, sieve the ones that you may use and save money on taxes this tax season.