Tax credits and deductions help small businesses by providing a dollar-for-dollar reduction in the amount of taxes they owe. As such, knowing about them is crucial to making wise business decisions. It is also essential to hire a trusted advisor, such as TSAT, to help you understand available deductions and ensure your business’ tax return is optimally filed!

There are many tax credits available to small business owners, but not all of them are widely known. These credits are designed to help business owners recover expenses and provide capital for expansion and prosperity. While some tax credits may seem small, they can make a big difference to a business. Here are 9 you might not know about, but should!

Section 280A

Section 280A allows homeowners to rent out their homes for up to 14 days per year without the need to report the rental income on their individual tax returns. That means a small business owner can rent their personal residence to their business for a company retreat. The cost of the retreat, including the rent, is a deduction for their business, and the income is tax-free for the homeowner.

Work Opportunity Credit; Disabled Access Credit

The Work Opportunity Credit provides 40% of the first $6,000 in first-year wages for hires from specific demographic groups. The Disabled Access Credit is available for businesses earning $1 million or less and with 30 or fewer full-time employees. It covers up to 50% of access expenditures, with a maximum of $5,000 in a single year. Research is key to matching your business needs

Retirement Plans Startup Costs Tax Credit

A little-known credit available to small businesses is the Retirement Plans Startup Costs Tax Credit, which is available to businesses with 100 or fewer employees. The credit can generate tax savings of up to $5,000 per year for three years to help offset the cost of starting a new retirement plan for employees.


The SECURE Act was signed into law in 2019. It made significant changes to retirement plans, including the creation of enhanced tax credits for small businesses starting a new 401(k) plan or adding automatic enrollment to any 401(k) plan. These incentives are designed to encourage employers to set up employer-sponsored pension plans for employees and to increase participation.

Employee Retention Credit

Small to medium-sized businesses harmed by Covid-19 may be eligible for the Employee Retention Credit. The ERC is a dollar-for-dollar credit on wages paid. The 2021 ERC is available up to three years from filing the first three quarters of 2021 payroll returns. Find a firm that will do the ERC on a time-incurred rather than a contingent-fee basis to ensure the ERC has maximum benefit for the employer.

Credit For Small-Business Health Insurance Premiums

There are several tax credits you can utilize to offset your liability; one you should know about is the Credit for Small-Business Health Insurance Premiums. This credit is for 50% of your employer-paid health premiums. As any entrepreneur can tell you, running a business becomes extremely costly when you start hiring; this credit can be a great way to reduce some of that cost while you invest in your team.

Section 179 Deduction

The Section 179 deduction is the most important tax credit for businesses to know about. This tax credit, sometimes referred to as a deduction, is for business equipment. You can deduct the full purchase price of qualifying equipment and software.

How can TSAT become your Trusted Advisor and help provide your small business with Financial H.O.P.E.?

Your Trusted Advisor… At TSAT, we know that a great businesses need to operate at high levels of service, accuracy, reliability, and throughput. We also know that the only way to ensure these things are achieved is to develop a comprehensive set of accounting and finance policies and procedures and to regularly train all personnel involved in the management and control of the company’s software. Only by taking steps toward accounting, quality assurance, and finances can a small business accounting department expand its business and improve its profit margins. It takes a little work to make sure that every aspect of small business accounting is running at full capacity, and we are here to help!

Here at TSAT, we are not simply bookkeepers. We work with you to provide a 360-degree strategic financial advice, including small business operations and investment guidance. We will help you stay ahead of the curve when it small business or personal investments!

If you are a gig worker or small business owner looking to grow your business, TSAT’s AMAZING Trusted team considers much more than just your taxes!


TSAT’s is your Trusted Advisor and will let you focus on your business’s core competencies! Whether you have a small business or you need help personally, TSAT can give you HOPE! Call us today! 

Phone: (417) 208-2858