4 Small Business Tax Credits to Take Advantage Of

Managing your finances can be quite a task for a small business owner. In addition to being responsible for your day-to-day operations, you’re also responsible for staying on top of your business’s finances. One important aspect is understanding the tax code and taking advantage of any tax credits that may apply to you. So, here are just a handful of credits Edgewater CPA Group can help you take advantage of.

1. Small Business Health Care Tax Credit

The Small Business Health Care Tax Credit is available to small businesses that provide health insurance to their employees. This tax credit can be worth up to 50% of the premiums you pay for your employees’ health insurance. To qualify for this tax credit, you must have fewer than 25 full-time equivalent employees, pay at least 50% of their health insurance premiums, and have an average annual employee wage of less than $50,000.

2. Research and Development Tax Credit

The Research and Development Tax Credit is available to businesses that conduct research and development activities in the United States. Eligible expenses include wages paid to employees working on research and development projects, supplies and materials used in research and development, and certain contract research expenses.

3. Work Opportunity Tax Credit

The Work Opportunity Tax Credit is available to businesses that hire individuals from certain targeted groups, such as veterans, people with disabilities, and ex-felons. This tax credit can be worth up to $9,600. To qualify for this tax credit, the employee you hire must be a member of a targeted group, and you must hire them within one year of their qualifying event, such as their discharge from the military or release from prison.

4. Retirement Plans Start-up Costs Tax Credit

The Retirement Plans Start-Up Costs Tax Credit is available to small businesses that start a new retirement plan for their employees. This tax credit can be worth up to $500 per year for the plan’s first three years. To qualify for this tax credit, you must have 100 or fewer employees who received at least $5,000 in compensation during the previous year.

Let’s Get Your Tax Credits in Order

As a small business owner, it’s important to understand the tax credits that may apply to your business, and Edgewater CPA Group is here to help. If you’re looking for a trusted tax professional partner, contact our Carmel, IN, office at (317) 386-7021. We’ll help you prepare your 2023 taxes or help you resolve tax issues from the past. So, don’t wait – You could miss some key business credits!