There still may be time to cut your tax bill with an IRA
- ByPolk & Associates
- Mar, 03, 2022
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If you’re getting ready to file your 2021 tax return, and your tax bill is more than you’d like, there might still be a way to lower it. If you qualify, you can make a deductible contribution to a traditional IRA right up until the April 18, 2022, filing date and benefit from the tax savings on your 2021 return. For 2021, if you’re eligible, you can make a deductible traditional IRA contribution of up to $6,000 ($7,000 if you’re 50 or over). To be eligible, you must meet rules involving your income and whether you (or your spouse) are an active participant in an employer retirement plan. Contact us if you want more information or ask us about it when we prepare your tax return.
The election to apply the research tax credit against payroll taxes
- ByPolk & Associates
- Mar, 03, 2022
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The credit for increasing research activities, often referred to as the research and development credit, is a valuable tax break for eligible businesses. Claiming the credit involves complex calculations, which we can take care of for you. But in addition to the credit itself, be aware that it also has a feature that is especially favorable to certain eligible small businesses. The credit can be used against the employer’s Social Security payroll tax liability. To qualify for the election a taxpayer: 1) must have gross receipts for the election year of less than $5 million and 2) be no more than five years past the period for which it had no receipts (the start-up period). Contact us about whether you can benefit from the payroll tax election and the research tax credit.