The tax code is an ever shifting target. One year you can’t claim something, the next year you can.
But there are a few things that never change. And these stalwart pillars in the tax code could save your business thousands if not millions in taxes each year.
But you have to hire a qualified accountant who knows the tax code like their own name. Why? Let’s look at the reasons below.
1. If You Made Charitable Donations This Year, You Might Need A Boise Accountant
Or if you plan on making charitable donations this year, you might need a Boise accountant as well.
The history of tax exemption for 501(c)(3) organizations is fraught with controversy. But the strict rules for such organizations and their donors when it comes to taxes are fairly straight forward.
But a CPA will know exactly what documents you need and which organizations qualify as tax exempt not-for-profits.
2. Do You Give Health Incentives to Employees?
If you run a business, maintaining healthy staff member will both save you money and increase productivity. But what you may not know is that if you offer even more incentive to your employees, the government looks kindly on your efforts.
How kindly? As kindly as a tax break sounds.
Anything that isn’t considered as a medical care expense is taxable to employees. Therefore incentives like gym membership reimbursements will be tax deductible.
But your CPA will know best how to deduct these expenses and how to keep track of these expenses for your tax record. If you want the maximum return on your investment, you’ll hire an accountant.
3. Do You Give Bonuses to Employees?
Employees love bonuses. And you most likely love it when you can reward employees for their hard work.
But you need to know a few things about how bonuses affect your tax routine.
If you give bonuses, use a flat withholding rate of 25% This will result in a lower withholding amount on your payroll taxes.
And once you’re ready to file, be sure to contact your CPA for more instructions on what you need to do.
4. Do You Use Your Personal Vehicle for Work?
Some jobs require you to use a personal vehicle for transportation during work hours. If you’re an employee who uses their personal vehicle for work, you can deduct this from your taxes.
The standard mileage rate is $0.53.5 per mile as of 2017. And you can deduct other expenses such as gas, repairs, oil changes, insurance, and depreciation.
Your Boise accountant will know exactly what percentage is allowed and how much the deduction must exceed your gross income to be useful.
5. Do You Have an IRA and Have You Contributed to It?
A lot of people forget about their IRA tax deductions. The deduction you get on your IRA contributions is based on your income bracket.
If you are in the 25% income bracket and you contributed about $500, you should see about a $125 deduction.
Talk to your CPA for more information on how much of a deduction you’ll receive from your IRA contributions this year.