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Tax Credits Small Businesses Often Overlook

Deductions lower your taxable income; credits lower your tax bill directly, dollar for dollar. That makes overlooked credits some of the most valuable money you can find.

By Chaudhry Ahmad, NorthPeak Financial Partners5 min read

01Credits vs. Deductions

A deduction reduces the income you're taxed on. A credit reduces the tax itself. A dollar of credit is worth far more than a dollar of deduction — which is why missing one hurts.

02The Research Credit

Businesses that develop or improve products, processes, or software may qualify for a research credit — and the definition is broader than many owners assume. Worth investigating if you build anything.

03Hiring-Related Credits

Credits like the Work Opportunity Tax Credit reward hiring from certain groups. If you're hiring anyway, you may be leaving money on the table by not checking eligibility.

04Retirement Plan Startup Credit

Small businesses that set up a retirement plan can claim a credit for the startup costs. See the IRS startup cost credit page.

05Finding the Ones You Qualify For

Credits are specific and easy to miss. Reviewing eligibility with a professional often uncovers savings that more than cover the review itself.

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This article is general information, not individualized tax, legal, or financial advice. Every situation is different — reach out and we'll look at yours directly.