Theresa Arndt, CPA

One tax break often overlooked is the Work Opportunity Tax Credit (WOTC).  The WOTC has been around for years but many businesses are not aware of it.  It is a program that allows employers who hire individuals from certain targeted groups (see list below) to receive a federal income tax credit.  Industries such as construction, restaurants, transportation, health care, c-stores, manufacturing, distributors, call centers, and staffing agencies tend to see the most qualifying employees for this credit. How much is the credit worth? It ranges from $2,400 to $9,600 per new hire and there is no limit on the number of new hires or total amount of credits you can claim. That's like free money from the government!  Sadly, millions of dollars in tax credits go unclaimed each year even though employers are hiring workers every day from the WOTC targeted groups.       Why you have to act fast? One reason the credit is overlooked is...

I want make you aware of a substantial deduction that many people in the construction industry qualify for but is often overlooked by tax preparers.   Specifically, I am speaking about the “Domestic Production Activities Deduction”.   This deduction is available to all home builders and contractors regardless of what tax forms they file.    If you are a sole proprietor, S-corporation, LLC or Partnership, you can tell if you have taken the deduction by looking at line 35 of your Form 1040.   I find that nearly all of the builder’s and sub contractor’s tax returns I have reviewed have not claimed this deduction…and it can be substantial.   Personally, I think there are a couple of reasons this deduction is not being taken advantage of: ·           Some tax preparers may not be up to speed on all changing tax laws as it relates to the construction industry   ·      ...