Tax season is right around the corner, which means that every business should be sitting down with their accounting professionals to review their books for the year and get their taxes filed on time. However, as you look ahead it’s a good idea to familiarize yourself with tax credits and exemptions that many businesses owners don’t realize they can benefit from. What are some of the tax credits you should keep in mind this year to lower your tax obligation?
5 Tax Credits and Exemptions Businesses Should Know About
- The Family and Medical Leave Credit: This credit has been extended through 2025, and employers like you can claim it if you had employees who were eligible for FMLA leave and had wages within a specified range.
- Work Opportunity Tax Credits: This program was designed to encourage businesses to hire employees who are in traditionally underserved demographics, like recipients of SNAP benefits, ex-felons, and veterans. If you hired people in those populations this year, you could be eligible for tax credits up to $6,000 for every new hire that you made.
- Energy Efficiency Credits: The government offers many different types of tax credits to businesses that invested in energy efficiency measures. If you are interested in making your business greener this year, you should consult with your tax preparation professional to make sure that you keep the right records.
- Employee Retention and Disaster Benefit Tax Credits: Because the pandemic is ongoing, there are still COVID-specific tax credits in place. The Employee Retention Credit offers you up to $7,000 per employee per quarter of 2021 for keeping your employees employed throughout the pandemic. The Disaster Benefit credit also is designed to ease the financial strain of operating today.
- Equipment Depreciation: One of the biggest ways to lower your tax burden is by ensuring you are properly tracking the depreciation of your assets. Equipment that your company uses gradually wears out over time, and you can harness tax savings to ensure that you can save up for replacement or repair.
Working with your accountant at MKS&H will make sure that you never miss out on the tax credits and exemptions that you are entitled to.
Make Business Tax Filing Easier with Help from MKS&H
MKS&H provides tax and accounting services to businesses of every size and in every industry. We can work with you to make taxes easily and avoid the most common mistakes. Contact us today for a consultation.
About MKS&H: McLean, Koehler, Sparks & Hammond (MKS&H) is a professional service firm with offices in Hunt Valley and Frederick. MKS&H helps owners and organizational leaders become more successful by putting complex financial data into truly meaningful context. But deeper than dollars and data, our focus is on developing an understanding of you, your culture and your business goals. This approach enables our clients to achieve their greatest potential.