Unlike deductions, 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 […]
Category: Citizens and Residents
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 […]
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