Take note of small business tax changes and maximize your tax outcome this year.
Understanding business taxes can take up a lot of your time. Keeping up with the changes each year can seem nearly impossible. What’s new or different that small business owners should be aware of?
To help you cut through the clutter, we’ve worked with the small business tax experts at Block Advisors. We summarize what changes might affect you as a business owner. We also look at what impacts you as an individual taxpayer.
Why stay on top of tax changes? Of course, you want to file an accurate return. However, knowing what tax deductions and credits are available to you can help you trim dollars from your tax bill.
Tax law changes for 2021 returns (filed in 2022).
Below are a few of the top tax changes to keep in mind when you file your taxes this year.
- 100% business meal deduction – Congress announced that they would temporarily allow a 100% deduction for dine-in, catered, or take-out business meals for another year. This helps stimulate the economy. While some conditions may apply, many business owners will be able to take advantage of this extended tax benefit.
- Coronavirus relief reporting for small businesses – Were you able to secure a Paycheck Protection Program loan? Did you receive the Economic Injury Disaster Loan or advance in 2021? You’ll want to understand how loan forgiveness ties into your tax responsibilities. The good news is that IRS rules allow for special treatment of loan proceeds and expenses paid with forgiven loans.
- Stimulus and child tax credits for individual filers – Thanks to the stimulus bill passed in March 2021, millions of taxpayers received additional money in the form of stimulus payments and Child Tax Credits last year. If your household was included in these payments, you’ll want to be aware of special letters the IRS is sending to help you report this money. Not only will these documents help you accurately report your payments, but they’ll also help you avoid potential processing delays.
Want to take a deeper dive? Review the Block Advisors post with a detailed review of small business tax changes for 2021 returns, including tax changes related to business interest deductions, claiming a business loss, and more.
Not sure where to start with your business taxes? Let Block Advisors help.
Navigating the tricky waters of tax forms, deductions and credits, can be a lot of effort. Couple that with new or updated tax laws, and you’ve got a lot to deal with as a small business owner.
Luckily, trusted help is available at Block Advisors. Our tax pros are the trusted resource for small business taxes nationwide. Bolstered by 12 years of experience, on average, our tax pros can support you so you can get back to what you love.
Get $35 off expert tax preparation for your business.
Block Advisors helps lighten the load for small business owners and the self-employed with expert tax preparation and other relevant services – so you feel confident and at ease. And right now, new clients can get $35 off expert-prepared tax prep. File with a tax pro or do your own with on-demand help along the way – all with 100% accuracy guaranteed. Terms apply.
Block Advisors, part of H&R block, was founded with the mission to serve small businesses. After decades of helping small businesses with taxes, tax industry leader H&R Block, saw the need to give advanced support to small businesses – the backbone of the American economy. Today we’re proud to help more than two million small businesses with taxes every year and have experienced their challenges first-hand. With nearly 8,000 offices nationwide, we have small business certified tax pros and bookkeeping and payroll specialists in neighborhoods ready to help businesses with tax and operational needs. Our goal is to lighten the stress clients experience as they build and run their businesses.