October 18, 2016

Understanding the Small Business Healthcare Tax Credit

Small Business Healthcare Tax Credit The Small Business Healthcare Tax Credit helps small businesses and tax-exempt organizations afford the health care they provide their employees. Your business is eligible for the credit if: Your business employees fewer than 25 employees. That includes those working full-time and part-time. If the average annual wage paid to employees must be less than $50,000 (in 2015), and the employer must pay at least 50% of all employees’ health insurance premium costs. Beginning in the tax year 2014, the tax credit became worth a maximum of 50% of premiums paid by small business employers and 35% of premiums paid by small tax-exempt employers. If you didn’t owe any taxes during the tax year, the credit could be carried back or forward to other tax years. To learn more about small business tax issues, please contact a qualified tax professional. Tip courtesy of IRS.gov
August 24, 2016

Back-to-College Tax Tips – Financially Simple

“Back-to-College Tax Tips”If you, your spouse, or a dependent is heading off to college, there are some important tax-saving tips you should know about. Here’s what the IRS says: Back-to-College Tax Tips You can claim only one type of education credit per student on your tax return each year. If you have multiple eligible students, you could claim a different credit for each student. To qualify, education expenses must be for tuition, fees, and “related expenses” for an eligible student. Expenses must be paid for attendance at eligible higher education institutions, including most colleges and universities. Ask the school whether they are an eligible institution or check the school’s accreditation status in the U.S. Department of Education’s Accreditation Database. The American Opportunity Tax Credit: The AOTC is worth up to $2,500 per year, per eligible student. You may claim this credit only for the first four years of higher education. 40% of the AOTC is refundable, which means if you are eligible, you can get up to $1,000 of the credit as a refund, even if you do not owe any taxes. The Lifetime Learning Credit: The LLC is worth up to $2,000 on your tax return. There is no […]