Small Business Tax Deduction Strategies

Don’t be caught off-guard by the next installment due date for estimated taxes. Fortunately, you can avoid tax penalties if you paid the amount required under one of three safe-harbor methods.

Does your business intend to hire military veterans this year? It may qualify for the Work Opportunity Tax Credit.

According to a new case decided by the 9th Circuit Court, you can’t use a Roth IRA to hold S corporation stock: The corporation must be taxed as a regular C corp.

Q. My wife, who never worked, reached full retirement age for Social Security last month. I will reach it in November, but won’t retire for a few years. Should I wait to apply for benefits?

Although you generally can’t deduct the cost of going to and from work, you may be able to write off certain “commuting” expenses. Here are five prime examples.

The IRS is warning taxpayers about an emerging scam. Under the scheme, promoters claim they can obtain a tax refund or nonexistent stimulus payment based on the American Opportunity Tax Credit (AOTC), even if the victim went to school decades ago.

Prepare for the possible loss of several critical tax winners at the end of 2012. These include the “Bush tax breaks” that were initially passed a decade ago. Here’s a rundown of nine key tax breaks for individuals and small business owners slated for the endangered list.

Q. How can money taken out of a payroll check for Social Security benefits be a payroll tax reduction? Doesn’t this reduce the funds for my Social Security benefit plan?

It’s only been a short time since you put your 2011 tax return to bed. Now you’ve discovered that you made an error that cost you hundreds or even thousands of tax dollars. Strategy: File an amended return. Simply use Form 1040X.

Q. I have a SIMPLE-IRA, while my husband has a SEP-IRA and a traditional IRA. We’re both in our 50s. Can we consolidate these into traditional IRAs?