Tax Credits: Small Business Owners Take Note

Last updated on September 11, 2021

There are many tax credits that small business owners can use, but they need to find the ones that they can use depending on the nature of their business, the number of employees and other particulars that affect their profits. The three tax credits that many small business owners overlook and that can be used to reduce their tax liabilities are discussed below.

Disabled Access Credit

This credit is available to small business owners who had earnings of less than $1 million in the previous year or have less than 30 employees working for them. Under this tax credit, if you make any improvements in your business property to fulfil the requirements of the Americans for Disability Act, you get a tax credit of a maximum of $5,000 or up to 50% of your expenditures.

Work Opportunity Tax Credit

Under this credit, you can receive up to $9,600 if you are a for-profit company and employ veterans. If your company is non-profit, you may receive up to $6,240. The amount in tax credit you can claim depends on the wages you are paying to the veterans, the number of veterans working for you and the hours they work for you every day.

Health Insurance

Now small businesses can get help from the government in providing health insurance to their employees. This credit is available to those small employers who pay at least half of the cost of a single coverage for their employees. The maximum credit is 35% of premiums paid in 2010 by those who are eligible for this credit. For tax-exempt organizations it is 25%.

You can take advantages of these tax credits this tax season and save much on taxes. Apart from that, you can also use tax credits to get benefits for your business, yourself and for your staff members.