As a small business owner, you want to make sure that you are making a profit, providing goods or services that please customers, and that your finances are on track for success. An important part of making sure you are financially stable is working with a tax accountant. Professional financial experts can catch deductions that you might otherwise miss. They can even help to improve your tax return overall or reduce the amount you owe to the IRS. BizBooks4U offers Tarpon Springs small business owners a judgment-free way to stay on top of their financial health and maintain their business operations with success.
Own an S Corp? Deduct Your Health Insurance
An S corp can give you the opportunity to lower costs like Social Security and Medicare taxes. In addition, it is possible to take a personal income tax deduction for health insurance premiums that the corporation pays for. If you own more than 2% of company stock in an S corporation, when it comes to deducting health insurance premiums, you get the same benefits as a self-employed person. This is a special personal deduction that you must report on your Form 1040 as self-employed health insurance.
The deduction is limited based on the amount you are paid annually by the S corp. Whether you buy the policy individually or your S corp does it for you, you can still receive the deduction. For more details on completing this deduction, work with a Tarpon Springs tax accountant at BizBooks4U.
Review Your Insurance Costs and Make Deductions
A tax accountant can review your insurance policies (such as business owner’s policy, flood insurance, professional liability insurance, worker’s compensation insurance, and more) to determine where you can make deductions. The costs of your insurance policies are deductible, but when it comes to health insurance, there are some limitations. Small businesses in Tarpon Springs can qualify for a credit of, at most, 50% of the premiums paid for employees. Plus, the coverage costs for those who are self-employed or those who own more than 2% of company stock in an S corp are not business deductions. Rather, as we mentioned previously, that deduction will go on the owner’s personal return.
Marketing, Advertising, and Promoting
If your business uses ordinary advertising methods such as a website, business cards, ads, etc. then these are deductible expenses. Many businesses choose to support local teams to create goodwill for the business, and these promotional costs are also deductible. However, there must be an obvious connection between the business and the sponsorship. An example of a clear connection could be naming the team after the business, listing the business name in a program, or perhaps putting the business name on the uniforms. A tax accountant at BizBooks4U in Tarpon Springs can help you determine where to focus your goodwill efforts and how to report these deductions in your business taxes.
Choose a Tax Accountant at BizBooks4U for Surprising Deductions You Wouldn’t Expect
By working with a professional tax accountant at BizBooks4U, your small business can claim surprising deductions! Even ones that you may not have known were possible. Trust our experts to help your Tarpon Springs business with your financial stability and wellness. Call us today at (727) 939-1044 or contact us online to schedule a consultation.
