2022 is the year of change. In the last two years, we have seen many businesses flourishing in the COVID era and also several going into permanent hiatus. With the outbreak of COVID-19, businesses faced numerous challenges that directly impacted their day-to-day business around the world. We also saw a shift of approach on various levels which changed the dynamics of how business generally operates. Factors such as profit, loss, cost, operations, and taxes directly or indirectly impact businesses. Hence, businesses need to have tax saving options that will help the venture in the long run.
In this blog, we will help you find tax saving options that will help you and your business make more profit. Also, we are not experts, these are just suggestions that will help you irrespective of your business.
- Self Employment Tax
- Home office Deductions
- Business Related Insurance Premium
- Marketing your business
- Your Phone bill
- Licensing and Taxes for your business
- Legal and professional services
- Auto Expenses or Transportation expenses
Tax Saving Schemes for you in 2022
Self Employment Tax
Each year, there is a deduction for social security and medical from your payroll. This comes under FICA (Federal Insurance Contributions Act). Also, as you are self-employed there is an additional tax called SECA. (Self-employment Contributions Act). Earlier, if you were employed somewhere, your employers use to pay SECA from your payroll. Now, you are both the employee and employer of the business, so, you will be only paying taxes as an employer, not an employee.
Home office Deductions
As a business owner, if you are performing any business activity in your home. And, if you are using that particular place of your home exclusively for business purposes, you can avail yourself of deductions. The place where you conduct meetings and crack deals worth millions with your client. You can avail the deduction, adhering with the condition that you maintain records of the expenses and from which part of your home you conduct business activities.
Business Related Insurance Premium
Risks appetite is important for business. There is no business that doesn’t have risk involved. As the business grows there are more risk elements involved which make insurance a better and more secure option. Today, majority of businesses opt for some or other type of insurance. Generally, businesses are secure with the insurances such as locations, and property insurance. Along with this insurance, you can also choose for insurance such as malpractice insurance, worker’s compensation insurance, errors and omissions insurance, and liability insurance. As a tax-saving option, you can show the premium of this insurance.
Marketing your business
As a business owner, it is a must that you should be aware of numerous things that are happening in and around the business. This makes you a smart business owner and helps you save a lot of money and time. Marketing is a primary business activity of any business owner. You always end up spending a huge amount of money in marketing the business whether it’s advertising, networking, SEO, websites, conferences, or traditional marketing. You are eligible to get a tax deduction for the money you spend on marketing your venture.
Your Phone bill
Today, phone is must-have irrespective of the business or location. As an individual, the phone is used for personal purposes but for the business owner, a phone is more than a mode of communication. Phone allows the business owner to communicate with its clients and other team member without any hassle. So, the phone bill that you receive as a business owner is tax saving options for you. Also, for many business owners, it can be a tax-deductible expense.
Licensing and Taxes for your business
Everyone who owns a small business must have this question, “Can a small business get a tax refund?” There are several options as you have already read in this blog. Along with these above-mentioned tax-saving options, licensing fees to run your business also comes under tax-deductible. This includes your real estate taxes or property taxes that you pay on business property. Also, it can include professional licensing fees that you pay.
Legal and professional services
Business owners as expected to have good knowledge but they can not be experts in every field. This is where the other professionals come into the picture. When you delegate roles and responsibilities to other professionals, you save your tax as the legal and professional services are tax-deductible. You can ask your accountant to deduct these expenses from your business income.
Auto Expenses or Transportation expenses
As you know transportation is an essential part of our life. Similarly, businesses are also very much dependent on transportation. For example, the vehicle that is used for business whether it’s a car or truck, you can avail that cost for a tax deduction. The cost includes the combination of interest on your car loan, gas, parking, auto lease payments, maintenance, and even repairs. Also, there might be some business owners who use their vehicle for both personal as well as business, they can avail for the cost that has been used for business purposes.
The final Verdict: Tax Saving Options
The above list will surely help you find some of the best tax-saving options available for your business in 2022. Along with these mentioned options, you can opt for health insurance premium, first-year depreciation of business assets, continued depreciation on business assets, bad debts, and others. We hope you find this list useful; we also, hope you find your right tax saving options.
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