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Top tax credits and deductions for the 2022 filing year: Small business owners

For the 2022 filing year, there are several top tax credits and deductions that small business owners should be aware of

As a small business owner, it's important to take advantage of every available tax credit and deduction in order to reduce your tax liability and maximize your profits. Here are some of the top tax credits and deductions for small business owners in the United States:

For the 2022 filing year, there are several top tax credits and deductions that small business owners should be aware of. These include:

  1. The Small Business Health Care Tax Credit: This credit is available to small businesses that provide health insurance coverage to their employees. The credit can be worth up to 50% of the premiums paid by the employer, and it is available to businesses with fewer than 25 full-time equivalent employees who are paid an average annual wage of less than $50,000.
  1. The Work Opportunity Tax Credit: This credit is available to businesses that hire individuals from certain targeted groups, such as veterans, ex-felons, and individuals receiving public assistance or SNAP. The credit can be worth up to $9,600 per eligible employee, and it is available for the first year of employment.
  1. The Section 179 Deduction: This deduction allows small businesses to immediately deduct the full cost of qualifying business property, including machinery, equipment, and software. The maximum deduction is $1 million for the 2022 tax year.
  1. The Employee Retention Credit: This credit is available to businesses that have been impacted by the COVID-19 pandemic and are unable to fully operate due to government restrictions or a significant decline in gross receipts. The credit is available for up to $7,000 per eligible employee.
  1. The Research and Development Tax Credit: This credit is available to businesses that engage in qualified research and development activities, such as developing new products or processes. The credit can be worth up to 20% of qualified research expenses, and it is available to businesses of all sizes.
  1. The Energy-Efficient Commercial Building Tax Deduction: This deduction is available to businesses that make energy-efficient improvements to their commercial buildings. The deduction can be worth up to $1.80 per square foot, and it is available for improvements made in tax years beginning after December 31, 2017.
  1. The Home Office Deduction: This deduction is available to small business owners who use a portion of their home exclusively for business purposes. The deduction can be claimed for a portion of the expenses related to the home, such as mortgage interest, property taxes, and utilities.

By taking advantage of these tax credits and deductions, small business owners can reduce their tax liability and keep more of their hard-earned profits. As always, it's important to consult with a qualified tax professional to ensure that you are taking advantage of all available tax breaks and deductions.


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