Tax season989 Archivesno walk in the park — and that’s especially so for small business owners and solopreneurs. Even if you’re already properly managing your quarterly taxesand have all of your ducks in a row, this time of year means facing your business financials head-on and making any revisions needed to keep your business books going in the right direction.
Thankfully for small business owners, there are a handful of really good tax credits that you can take advantage of for the 2024 tax year. The following tax credits range from employee retention to healthcare credits, all of which are designed to give small business owners a leg up come tax season.
What is the difference between a tax deduction and a tax credit?
The main difference between a tax deduction and a tax credit is that a tax deduction applies to your business income, which can potentially put you into a lower tax bracket and lessen the amount of taxable income you’ll report to the IRS. A tax credit is simpler — it reduces the dollar amount of taxes that you owe. This means that you’ll save dollar-for-dollar on the tax credits that apply to your small business.
Here are the best 2024 tax credits for small business owners:
Disabled Access Tax Credit
The Disabled Access Tax Credit covers 50% of expenses incurred (up to $10,250) from making your small business more accessible to those living with disabilities. The credit can also be used for hiring interpreters, making alternative materials available to individuals with visual impairments, and more.
Empowerment Zone Employment Credit
The Empowerment Zone Employment Credit allows businesses in empowerment zones or distressed areas that hire and retain employees in said area to claim up to $3000 per employee. The credit doesn’t limit the number of employees and can be renewed annually.
Qualified Plug-in Electric and Electric Vehicle Tax Credit
If you purchased a plug-in electric vehicle such as an electric car or electric scooter for your small business after the 2010 tax year, your small business might be eligible for this tax credit. The credit total is between $2,500 and $7,500 depending on the size of your EV’s battery.
R&D Tax Credit
Businesses of all sizes that are innovating a process or product and can prove that they’re doing so through quantifiable research are eligible for the R&D Tax Credit. This might include software development, design, product enhancements, and other relevant innovations.
SECURE 2.0 Act
The SECURE 2.0 Act affords tax credits to small businesses that implement a 401(k) plan for employees or that add an auto-enrollment feature to an existing employer retirement plan.
Small Business Health Care Tax Credit
The Small Business Health Care Tax Credit was created to help small businesses put in place health insurance programs for their employees. The tax credit covers 50% of premiums paid and is available for small business owners for up to two consecutive taxable years. Keep in mind that to qualify for this tax credit, a small business must also have fewer than 25 full-time employees and pay average wages below the annual inflation-adjusted limit.
Work Opportunity Tax Credit
The Work Opportunity Tax Credit was first announced in 2021 but has since been extended to the end of 2025 by the Consolidated Appropriations Act. This tax credit applies to small businesses that hire those who otherwise face difficulties finding employment, such as ex-felons, SNAP recipients, and certain veterans. Small business owners can receive up to $2400 for every new hire that meets the appropriate specifications.
Topics Tax Season with Mashable
Samsung Unpacked stream is set for May 12, 2025
UK politician faces outrage, calls for ouster after using the n
NBA players and other sports stars stage walkouts over shooting of Jacob Blake
A year later, injured turtle returns to man who fixed his shell
The fat bears are already extremely fat
Your 2020 voting center may be an NBA arena
How Disney's 2000s movies helped shape its contemporary classics
But his emails! The internet roasts Donald Trump Jr. over Russia report.
Hidden Siri Commands and Unusual Responses
Lucid reveals more about its Tesla
Samsung Unpacked stream is set for May 12, 2025
The pandemic backed YouTube into a moderation corner. It has the numbers to prove it.
The pandemic backed YouTube into a moderation corner. It has the numbers to prove it.
Dad is extremely committed to making a really good dad joke
The Baffler’s May Day Round Up
How Disney's 2000s movies helped shape its contemporary classics
Heroic pizza delivery guy delivers pizza in the middle of the G20 Hamburg riots
This girl sneezed while taking a selfie and things went hilariously wrong
Waitin’ on the Student Debt Jubilee
Distance learning plans crunched as laptop shortage hits U.S.
Who Gets to Be a Mad Scientist?Sketchbook: The First SexStaff Picks: Trick Mirrors, Summer Beers, and Bedazzled Pianos by The Paris ReviewPoetry Rx: Won’t You Celebrate with Me?When Female Artists Stop Being Seen as MusesThe Art of SpooningIllustrated Maps of New York Through the Ages by The Paris ReviewA Space Cowboy’s CurriculumThe Saddest Children’s Book in the World by Yevgeniya TrapsToothless: On the Dentist, Powerlessness, and ‘Pnin’The Paris Review Recommends AntiRedux: Writers at Play by The Paris ReviewWho Is Nanette?The Saddest Children’s Book in the World by Yevgeniya TrapsWhat Comes After Idealism?What Our Contributors Are Reading This SummerWhy All the Books About Motherhood?Poetry Rx: Won’t You Celebrate with Me?Destined for the DirtyCooking with Eileen Chang by Valerie Stivers How people are using Mickey Mouse in his post Cooking with Steve Abbott by Valerie Stivers Redux: The Missing Tree’s Perspective by The Paris Review The Devil’s Sting by Drew Bratcher The City Has No Name by Lizzie Davis Manduka sale: Save on yoga essentials today at Amazon Renee Gladman’s Sentence Structures by The Paris Review The Other Kellogg: Ella Eaton by Edward White What’s the Use of Being a Boy: An Interview with Douglas A. Martin by Spencer Quong Jersey Jerry's 36 Samsung Galaxy S24: Release date, price, Ultra features, and more Cooking with D. H. Lawrence by Valerie Stivers Masks at Twilight by The Paris Review The Art of Distance No. 21 by The Paris Review Stalin’s Bodyguard: An Interview with Alex Halberstadt by John Jeremiah Sullivan Redux: Thunder, They Told Her by The Paris Review Staff Picks: Punctures, Punishers, and Podcasts by The Paris Review Kim Kardashian's once The Flatterer and the Chatterer by Marjorie Garber Google Drive is trash. Here's why and how to fix it.
2.496s , 8223.6875 kb
Copyright © 2025 Powered by 【1989 Archives】,Miracle Information Network