Tax Incentives for Businesses Promoting Accessibility

There is a wide range of Tax Incentives for Businesses encompassing their employees with disabilities in their work efficiently by focusing on improvement and promoting an organized as well as accessible workplace to all. Most such incentives are designed as a reward for companies investing in accessibility, with partial relief for associated expenses. Here’s a closer look at some of the main tax benefits available:

IRS Tax Tips
Tax Incentives for Businesses
  1. Disabled Access Credit

The credit referred to here benefits smaller companies committed to improving accessibility to their site or services in favor of the disabled. If your business had $1 million or less in revenues or 30 or fewer full-time employees in the preceding tax year, you may be able to claim this credit. The credit under the Disabled Access Credit is 50% of qualified accessibility expenses up to $5,000, with the first $250 not eligible. So if you spend $5,250 or more to improve accessibility, you may be able to get a $2,500 tax credit toward the cost.

Expenses that may qualify for the credit run the gamut from the purchase of special equipment to modifying facilities so long as these modifications are based on accessibility standards. Each year businesses are flexible to take this credit by just filling IRS Form 8826 and attaching it to their federal tax return while qualifying expenditures are made.

  1. Architectural Barrier Removal Tax Deduction

This deduction is applicable to all businesses, no matter their size and more importantly promotes overcoming the set architectural and transportation hurdles that affect mobility of aged and disabled persons. The write-off can be as much as $15,000 a year in qualified expenses that otherwise must be capitalized as assets on their books.

Qualified expenses may include anything from the installation of ramps to widening doorways to restrooms for wheelchair accessibility. The utility of this deduction, however, comes from the fact that it may be employed together with the Disabled Access Credit aimed at the extension of higher financial incentive in respect of eligible expenditures.

  1. Work Opportunity Tax Credit (WOTC)

The WOTC applies to companies that show dedication to hiring for diversity. This federal tax credit is an incentive to private employers for hiring qualified individuals, including persons with disabilities. It requires that the employee must work at least a minimum number of hours-a usual requirement of 400 hours during his or her first year of employment. The typical credit is 40 percent of the first $6,000 in wages paid, for a maximum benefit of $2,400 per qualified employee.

The WOTC can only be claimed when a business submits a certification request within 28 days of the start date of the worker. In fact, this credit represents an opportunity for an employer to get support from the design of an inclusive workforce while simultaneously giving contributions toward the employment of people with disabilities.

State-Level Benefits

Beyond federal incentives, many states offer additional tax credits, grants, or financial assistance programs that support accessibility and inclusion efforts. These may include grants for accessible workstations, funding for disability awareness training, or additional credits that reduce barriers for employees and customers with disabilities. Checking with your state’s tax department or small business resources can reveal other programs you may be eligible for.

In Conclusion

Tax credits and deductions available for accommodating people with disabilities not only make the workplace and public areas more accessible but also offset part of the investment. In that way, these benefits give companies greater leeway to make their places more accessible, while it reduces their tax liabilities in the process. The companies can help make the world an accessible place by taking these credits and keeping the bottom line in the process intact.

These credits provide a handy tool for companies looking to create more customers, tap into diverse talents, and make an inclusive setting for everyone.

Overtime Pay Taxes: Explained and Demystified

Hey there! Let’s discuss what might seem boring or dull yet overly crucial thing—taxes over-time salary. Those who have worked late hours usually feel that nice sensation when they see their checks are higher than they were supposed to be. However, this is when Uncle Sam comes in to take his tax from you. Now why does tax apply to extra payments?

Taxes on Overtime Pay
Taxes on Overtime Pay

The Basics of Taxes on Overtime Pay

To begin with, let us disabuse you of one common misconception that overtime pay is taxed higher than your normal salary. All your earnings are treated equally by the IRS. Nevertheless, since overtime can raise your overall income level; it may push you into a higher tax bracket and therefore incur a little more taxes overall.

My Personal Story

Let’s see how my tale unfolds. This was when I held a job as a worker in a technology start-up company, a couple of years back. The team was busy deploying a freshly invented product and dedicate outrageous amount of time to working. One fine month, I can remember that it was almost sixty hours per week I endured. And then the long awaited day arrived; and this made my life because that month I received the highest salary of my life! But then, I noticed something else: a hefty chunk had been taken out for taxes.

I was confused and a bit frustrated. I mean, I worked hard for that money! So, I did some digging. Turns out, my overtime pay had pushed me into a higher tax bracket. While my regular pay was taxed at one rate, the extra income from overtime was taxed at a higher rate because it increased my total annual income.

How It Works

In case you didn’t know, here is the breakdown: for all employees who are entitled to overtime, their employers should pay at least 1.5 times their hourly wage if they work beyond forty hours per week. The additional salaries go as part of one’s general wages and ought to be taxed the same way with the other income amounts earned. A good example of such is if the employee earns $20 an hour in the normal course of work and he/she works an extra ten hours, those extra hours will be paid at $30 per hour (thus amounting to $300). This should also be included in one’s income and hence will undergo taxation similar to that on salary level.

What You Can Do

So, what are you able to do? Thus, not very much, I must admit. Taxes are something you cannot get away from in your lifetime. However, it is good to make future preparations. If you predict excessive work hours, think about modifying the number of allowances for withholding on your W-4 form. It will assist you in avoiding a large tax payment at the end of the year. Maybe Donald Trump will get an opportunity to alleviate Taxes on Overtime Pay.

Final Thoughts

For the last time, as much as it might hurt to see those taxes taken from your hard-won overtime pay, keep in mind that it is a sign of higher income. And this is always something positive. Do not worry, if you double-check on how to plan your taxes effectively, you will retain more of the additional money.

So when burnishing midnight oil just remember; by working hard not only for yourself but for the common good as well! And why not buy yourself a gift using this additional cash; after all you deserve it!

Getting A Mortgage Tax Deduction

You may assume that filing taxes has to be confusing, but that isn’t the case. With the use of Turbo Tax 2014, you can make the filing process less stressful.

If you have a mortgage, you may be considering utilizing the mortgage tax deduction when handling your taxes.

My Mortgage Docs to be Reviewed by an Expert
My Mortgage Docs to be Reviewed by an Expert (Photo credit: i am real estate photographer)

Many people attempt to lower their taxable income with the use of deductions and credits. In order to do this, you may want to claim your mortgage interest. Some homeowners plan to use the deduction and hope to benefit from it, so they choose not to pay off their mortgage. You’re likely wondering if it makes more sense to benefit from the savings or get rid of your debt altogether.

Many individuals find that they have enough money to pay off their debts and still have some savings for emergencies, but they’re not sure if they should make this move.

If you choose to pay off your mortgage so that you can be debt free, remember that tax credits are different than deductions. A credit will lower your taxable income and a deduction will lower the percentage of tax that you owe. If you don’t have a mortgage, you may pay more in taxes, but it may still be less than what you’d pay in interest if you had a loan. In this case, it doesn’t make sense to keep a mortgage in order to get the tax breaks.

Tax Carnival Ecstasy – December 17, 2013

Welcome to the December 17, 2013 edition of Tax Carnival Ecstasy. We start with some information on filing your taxes at the end of the year for the 2013 tax season. We have a TradeKing review from John Schmoll. And finally Mark Wang looks at assets that you can own that create passive income. Make sure to bookmark the carnival on social sites, like on Facebook, Tweet, and share with all your friends.

filing

Bill Smith presents Important Dates For Filing Your 2013 Tax Return Forms posted at 2011 Taxes, saying, “As the year comes to an end, it is important to start thinking about filing your 2013 taxes.”

A Granny Smith apple
A Granny Smith apple (Photo credit: Wikipedia)

Bill Smith presents The TurboTax ItsDeductible App posted at 2010 Tax, saying, “Intuit Inc. announced on December 3, 2013 its new TurboTax ItsDeductible app, had become available for use on the iPhone.”

retirement

John Schmoll presents TradeKing Review: An Online Brokerage Worth Considering posted at Frugal Rules, saying, “Investing in the stock market is vital to building wealth and with the variety of options available of where to invest it can be confusing. Choosing a good brokerage that has good offering and low fees can be a great way to help grow your retirement portfolio and get your investing on the right foot.”

John Schmoll presents My Retirement Dream: to Keep Working! posted at Frugal Rules, saying, “Many want to follow the traditional retirement dream of working until 65 and then leaving the workforce completely. My retirement dream is different – to continue working. With frugal living and an aggressive investing strategy I believe many can pursue that dream and eventually work for yourself in retirement.”

taxes

Bill Smith presents IRS Forms To File Back Taxes posted at 2008 Taxes, saying, “Even if one is certain there are no mistakes in the forms when following federal tax procedures, a little shiver goes down a taxpayers spine at the very thought of a letter arriving from the IRS.”

Bill Smith presents How To Survive The Holidays posted at 2012 Taxes – Free Tax Filing Options, saying, “The holiday season can be fun yet challenging. Everyone wants to share in showing appreciation and love for those they love.”

Bill Smith presents Voting For Big Game’s Final Four In Last Days posted at 2014 Taxes, saying, “On Feb. 2, 2014, Intuit, the home company of TurboTax Canada, will make one small business a star in the biggest commercial game of the year.”

tips

Bill Smith presents Twitter IPO Vs. Facebook – FastSwings.com posted at FastSwings, saying, “At first glance, it would seem Twitter had no intentions of posting such a high IPO, but their current policy of growth says otherwise.”

Bill Smith presents Burger King Worldwide 2013 Third Quarter Results posted at FastSwings, saying, “Over the years, Burger King have been steadily going from strength to strength, so it comes as no surprise that the third quarter results are so impressive.”

Bill Smith presents Halliburton Profit Jumps 17% posted at FastSwings, saying, “Halliburton beat its earnings expectations with a seventeen percent profit jump this week, owing largely to its operations on a global scale”

Mark Wang presents Which assets produce passive income? posted at The Money MailThe Money Mail, saying, “When it comes to taxes, passive income assets can be completed as in how much they are taxed, how is the income treated and what accounts as income from tax purposes. Let us take a look at the various passive income producing assets in this article.”

Bill Smith presents How Secured Loans Can Help posted at Debt Consolidation, saying, “Consumers who need to rebuild their credit histories can take secured loans to start the process. A secured loan is an advance that a lender gives to a person who is willing to offer some type of collateral.”

That concludes this edition. Submit your blog article to the next edition of tax carnival ecstasy using our carnival submission form. Past posts and future hosts can be found on our blog carnival index page.

Free SCORE Tax Tips

Free SCORE Tax Tips

Having your own small business can be a rewarding experience. There are many aspects that can be difficult to accomplish on your own though. The most important issue that needs to be watched and completed correctly is taxes. Ten free tax tips offered by the Score business website can be helpful to any business owner.

Deductions are the most important thing to remember with your own business. Do not overlook those deductions that may not be the most obvious. Even trips that combine business and pleasure can be used as a write off, just make sure more than half is business related. If your business has employees, you need to worry about getting the correct taxes out of paychecks. Social security, medicare, state and federal taxes all must be withheld. Also unemployment taxes and employer matching are also important.

Keep all of the tax documents for at least seven years. Good record keeping could save money in the end. Business tax returns and licenses should be kept indefinitely though.

Make sure that all of the business tax deadlines are met. April 15 may be the personal deadline but it is not the same for business. All business owners know that estimated taxes are due four times a year. And they remember that sales taxes are due either monthly or quarterly or their bookkeeper keeps track of the dates for them. Employee taxes are even more difficult, they are due either weekly, monthly, or quarterly. This will decide manly on the size of the business. All of these different rules can affect the business greatly. Keep on top of your taxes to avoid tax penalties and interest charges from the IRS.