There are some tax breaks out there that may be available to small business owners. However, business owners may only qualify if their adjusted gross income is under a certain amount. If a small business owners could qualify, but their income was a little too high, they might lose access to tax breaks like higher education breaks, child tax credits, adoption credits, or traditional and Roth IRA contributions
The end of the year may seem a long way off, but now is the perfect time to lower adjusted gross income to be able to take advantage of these helpful tax breaks
The first step in this process is to make a projection of income for next year, and take a look at expected deductions and tax credits. With the projection in hand, it becomes apparent how close a business owner is to claiming various tax breaks, and whether or not they should take some aggressive steps to lower adjusted gross income for the year. Small business owners are often able to do this as they have some control over when they receive some of their income.
To learn more about tax projections and adjusted gross income, contact Filler & Associates.