Tax season is upon us, folks! That’s right, it’s time to fill out those dreaded forms and spend hours upon hours figuring out how you can get the most money back and pay the least amount of taxes. Being a business owner is hard but what’s harder is the costs associated with the daily running of your business. You may be new to the business world or you might be a small business who doesn’t know about taxes or sales tax nexus and cannot afford a tax preparer or accountant to help you at this time of the year. That’s where we come in. We have the lowdown on some business tax credits that you may not be aware of and can help you maximize your tax return in 2020. Here is a list of the top five business tax credits of which you may not be aware.
Self-Employment Social Security
If you are self-employed you have to pay about 15% of your income to cover your Social Security payments. If you would like to, you have the right to take the deduction that employees do, which is 7.65%. This can be a credit as well as a deduction, in that it reduces the tax bill and you may get some money back.
Credit for Employer-Provided Childcare Facilities and Services
Everybody talks about encouraging single parents to go back to work but it is hard to work and look after a child. If you are an employee who offers employer-provided child care facilities and services ,you are eligible for a tax credit. The credit is capped at $150,000 annually.
Disabled Access Credit
If you are an employer with disabled workers and you make modifications to your business to support their needs such as disabled toilets and disabled access to the building then you are eligible for a tax credit to help recoup the costs of modifying your business in order to allow your disabled employees to work comfortably.
Orphan Drug Credit
The orphan drug credit incentivizes pharmaceutical companies towards creating and Manufacturing drugs to help treat rare illnesses suffered by a small pool of patients. The credit is geared towards pharmaceutical companies who cannot turn a profit on such drugs because there is a limited number of patients with that condition.
American Samoa Economic Development Credit
Have you thought about taking your business overseas? Well, the IRS incentivizes business in American Samoa and its Economic Development. If you are a business who has contributed to the economic development of American Samoa, then there is a tax credit for you to help you recoup the costs of helping to develop the economy in American Samoa.
In truth there are a multitude of tax credits for business owners small or big depending upon their business many of the other tax credits available are centered around renewable energy or energy efficient vehicles or modifications to businesses. If you need help to navigate your taxes this season, including sales tax nexus, sales tax law, or a sales tax audit, there are a multitude of tax experts standing by ready to help you navigate your taxes in 2020.