Don't Mess With Taxes

Small businesses are adapting their operations to make it through the COVID-19 pandemic. Some tax breaks in the relief bill enacted at the end of 2020 could help. (Photo by Norma Mortenson via Pexels)

Most COVID-19 relief focus has been on the added financial help to individuals.

That's understandable. Millions of folks have been struggling to make ends meet as the pandemic has ravaged the economy. But they are facing fiscal woes in large part because their employers are in trouble, too.

When companies get their footing back, they can start to rehire laid off staff and things should pick up all around. That's why recent coronavirus measures also have included help for firms, especially smaller businesses, beyond the love it/hate it Paycheck Protection Program (PPP).

Help for businesses dealing with COVID: There are several such provisions for struggling enterprises in the combination federal funding/COVID relief law that was enacted at the end of 2020. And Gene Marks looks at a half dozen of them in his recent article for The Philadelphia Inquirer.

As Marks notes, "taxes can eat up anywhere from 15% to 25% of a small-business owner's income. Every dollar saved on federal taxes means more cash in your bank account, and that can mean surviving or failing these days."

That's why his article headlined The new stimulus bill has 6 big tax savings for small businesses earns this weekend's Saturday Shout Out.

Per this feature's guidelines, I'll let you click on over to the City of Brotherly Love's online newspaper site for the details. But here's preview of what to expect.

The small business help includes tax credits, which are better than deductions because credits offer dollar-for-dollar offsets against your due taxes.

That said, don't ignore the new law's increased charitable deduction option for business donors. It's good and good for your company soul and favorite nonprofit.

There's even a way to defer for a bit and without penalty some tax business tax deposits you usually make, giving you a little cash flow room.

If you run your own small business, check out the article. It could help you hold on until the coronavirus is under better control and all your loyal customers can return.

You also might find these items of interest:

• IRS and FBI warn about business cyber scams that target COVID teleworkers
• COVID tax credits highlighted by IRS during National Small Business Week
• IRS now accepting e-filed business tax returns, individual filings in mid-February