Staying up-to-date on changes in tax law can help small businesses maximize tax savings. But it can also be a ton of work. Tax laws change year to year in ways that can significantly impact your income tax return if you own a New Jersey business. Tax pros like Halter CPA can help you minimize your tax burden and ensure your filing is complete and accurate. We stay informed about the changing details of state and federal tax laws to help put more money back into your small business.
Here are just some of the things Joan W. Halter CPA can help you with this tax season.
1. Which way is the best way to file for my small business?
Most small businesses need to establish themselves as an LLC, a pass-through business, or a C-corporation. Each of these classifications comes with its own set of tax rules. Pass-through business owners must pay taxes as private individuals instead of through the business. These businesses can deduct 20% of their federally taxed business income. The 2022 deduction will phase out at taxable income levels between $170,050 and $220,050 (or $340,100 and $440,100 for joint filers).
C-corporations have had their tax rate reduced to 21% (in effect until 2027).
The best way to file will depend on the unique circumstances of your small business. Halter CPA can help you decide how to file your returns this year and prepare for future filings.
2. How do federal and NJ tax law changes affect my small New Jersey business?
There have been changes to the NJ and federal tax laws every year, with some changes significantly impacting small businesses. While it’s impossible to predict what changes will come year to year, an experienced tax preparer can provide insight into potential dramatic changes. Halter CPA has been following changes in tax legislation for years. Not only can we help you prepare for changes in tax law in the future, but we can also save you time otherwise spent on tax-related work. Our skilled services can take the burden of understanding the ever-shifting intricacies of tax law off your shoulders so you can focus on running a successful business.
3. How can I develop a strategy to lawfully reduce my tax burden?
Tax legislation is already in place that will impact your small business for years to come. There are crucial choices you can make for your small business this year and in the near future that can reduce your tax burden. Halter CPA can help you develop a strategy to take advantage of tax breaks and maximize the profitability of your small business. For example, the Inflation Reduction Act of 2022 includes several tax credits and business deductions for businesses making eco-friendly renovations in 2023. Planning for an energy-efficient renovation can save you on energy costs and reduce your overall tax burden.
A lot can change from year to year when it comes to tax law. One thing that stays the same is the need to work with a trustworthy tax professional. We can help you prepare your 2022 tax return and develop a strategy for tax seasons to come.