On National Mom-and-Pop Business Owner's Day, Jackson Hewitt® Offers Timely Tax Tips for Self-Employed Taxpayers
Top Five Tax Breaks Every Small Business Owner Needs to Know
PARSIPPANY, N.J., March 28, 2012 // PRNewswire // -- Small business owners, including entrepreneurial start-ups, franchises and mom-and-pop stores, are the cornerstone of the U.S. economy. According to the U.S. Small Business Administration, there were more than 27 million mom-and-pop and other small businesses in the U.S. in 2011(1). These small businesses typically account for more than 60 percent of all net new U.S. jobs(2). To support and encourage small business growth and hiring, the government has created billions of dollars in tax relief, including the Small Business Jobs Act, the HIRE Act and the Tax Relief and Job Creation Act.
In observance of National Mom-and-Pop Business Owner's Day, on March 29, Jackson Hewitt Tax Service® is recognizing mom-and-pop and other small business owners with important tax tips and advice to help them achieve the best bottom line on their business and personal taxes.
"As an organization with franchises at its core – many of which are family run – Jackson Hewitt recognizes the importance of small businesses and the unique tax breaks available to them," said Mark Steber, chief tax officer, Jackson Hewitt Tax Service Inc. "For independent small businesses and other small enterprises, taking the time to learn about relevant tax laws may help add dollars to their bottom-line at tax time."
Steber cites the following five tax breaks small business owners should keep in mind when filing a return this tax season:
- Married business owners - If you and your spouse operate a business together and file a joint return, you may be able to be treated as sole proprietors instead of as a partnership. A partnership requires a federal tax identification number even when there are no employees, potentially registering the business with the state for a fee, and a separate tax return for the business. Filing as two self-employed individuals is faster because the business filing is part of the personal tax return, there is no requirement for a federal tax identification number when there are no employees, and there is generally no registration requirements at the state level;
- Healthcare insurance- If you pay for medical insurance for yourself, your spouse and your dependents, up to 100 percent of that expense may be deductible. This deduction can be claimed whether or not you itemize deductions on your return and is subtracted directly from your total income;
- Business property - If you purchased any equipment, machines or other business property in 2011, you may be able to deduct the full cost on your 2011 tax return;
- Payroll- The wages and expenses of having an employee are deductible for a small business. These expenses include: the business share of Medicare and Social Security taxes; unemployment compensation; worker's compensation insurance; and, employee related benefits; and,
- Travel- If you use a personal vehicle for business purposes, you may be able to deduct the associated expenses. To claim this deduction, it is critical to keep track of the mileage on the vehicle from the first day of the year, or the first day the vehicle is used for business, through the end of the year, or the last day of the calendar year the vehicle is used for business.
Operating as small businesses themselves, Jackson Hewitt offices throughout the U.S. are experienced in preparing tax returns for sole proprietors and mom and pop businesses. Use the Office Locator feature available on www.jacksonhewitt.com or call 1-800-234-1040 to find the Jackson Hewitt location most convenient to you.
(1)The Importance of Extending the Payroll Tax Cut
About Jackson Hewitt Tax Service Inc.
Based in Parsippany, NJ, Jackson Hewitt Tax Service Inc. is an industry-leading provider of full service individual federal and state income tax preparation, with nearly 6,500 franchised and company-owned locations throughout the United States, including 2,800 located in Walmart stores nationwide. Jackson Hewitt Tax Service® also offers an online tax preparation product at www.jacksonhewittonline.com. For more information, or to locate your neighborhood Jackson Hewitt® office, visit www.jacksonhewitt.com or call 1-800-234-1040. Jackson Hewitt can also be found on Facebook and Twitter.
David G. Weselcouch
Jackson Hewitt Tax Service Inc.
CooperKatz & Company
SOURCE Jackson Hewitt Tax Service Inc.