One of the most overwhelming matters for small business owners to address are those related to tax laws and tax preparation. Taxes for businesses are different from personal taxes, and it is easy to overlook important factors that could make a difference in what a company owes to the Internal Revenue Service. Small business owners in Georgia will benefit from learning about tax credits and which ones may apply to their companies.
Tax credits versus tax deductions
Most people know about tax deductions, which are ways to reduce the taxable portion of income in order to reduce its tax obligations. Proper application of deductions could put a business in a lower tax bracket. A tax credit is slightly more straightforward in that it reduces the overall amount of taxes owed.
A credit provides a dollar-for dollar reduction of the total amount due. There are various different tax credits for which small businesses may be qualified, including the Work Opportunity Tax Credit, Employee Retention Tax Credit, and tax credits for research and development. There are a range of different types of credits for federal and state tax purposes that could apply to different types of businesses.
Don’t miss out
A Georgia small business owner will benefit from the assistance provided by an experienced tax law attorney and professional assistance with tax preparation. This guidance is critical as an owner seeks to properly apply tax credits and meet all obligations. An assessment of the business, its operations and other details can reveal which credits and deductions may be an option for a company.