Archive of entries posted in January 2014

Tax Credits—Some is Better Than Others

Unlike deductions, tax credit tax credits reduce your tax liability by dollar for dollar directly whereas tax deductions reduce your taxable income. Some tax credits can be more valuable than others.

Refundable vs. nonrefundable tax credit
Tax credits can either be refundable or non-refundable. If the tax credit were a refundable credit, it is not limited by the amount of an individual’s tax liability. Continue Reading »

Health Saving Account for Small Business Owners

HSA contributions for employees are usually deductible expenses for most businesses. However, HSA contributions made on behalf of Small Business Owners are subject to different rules. Sole proprietors, Partners and 2% shareholders of an S corporation are not eligible for salary reduction (Pre-tax) contributions to an HSA. The owners can establish HSAs and fund their HSAs in anyway they see fit. Continue Reading »