Small Business Tax Strategies

Smart small business owners save thousands of dollars per year on their personal and business taxes by taking advantage of the legal loopholes that the government creates for their unique tax situation. Small Business Tax Strategies cuts through tedious tax code to reveal the bonanza of completely legal opportunities to grow personal wealth and secure an enjoyable retirement.  Learn more about Small Business Tax Strategies and the two free reports you’ll get when you subscribe...

The tax law provides a special jobs credit—called the Work Opportunity Tax Credit (WOTC)—if you hire workers from one of several economically disadvantaged groups. The WOTC generally equals 40% of the first $6,000 of wages paid to a qualified worker.

Generally, qualified wages consist of the worker’s wages attributable to the one-year period beginning with the day he or she begins working for the employer.

Strategy: Hire qualified workers before year-end. For instance, if you hire a worker in November and pay him or her $2,000 a month, you can claim a credit of $1,600 (40% of $4,000) this year.

Note that the new economic stimulus law adds two more groups for credit eligibility. For workers hired and starting work in 2009 or 2010, the WOTC also covers unemployed veterans and disconnected youth between ages 16 and 24.