February 17, 2023
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Our ultimate lists of tax deductions
Tax season is in full swing, and one of the best ways to get prepared is to organize your business tax deductions. As a refresher, tax deductions are business expenses you can deduct from the amount of taxable income you owe.
But which business expenses qualify as deductions? The short answer: It depends on the type of business you run. That’s why we compiled a few helpful guides. Check out our ultimate lists below:
- Tax deductions for self-employed business owners
- Tax deductions for online sellers
- Tax deductions for shop owners
For additional information, see the IRS instructions on business tax deductions.
Trending up
Despite what you might see splashed across headlines and social media, Gusto’s latest economic data roundup is showing that the current job market is surprisingly strong. In a February report, The Bureau of Labor Statistics estimated that the U.S. added 517,000 jobs in January 2023, almost double the 260,000 added in December 2022. What’s more, Gusto’s internal data from January showed that hiring picked up while layoffs remained low.
Gusto economist Luke Pardue breaks down the data in more depth here.
How to qualify for the R&D tax credit
Have you heard of the Credit for Increasing Research Activities, also known as the research and development (R&D) tax credit? In case you haven’t heard us mention it before, it’s one of the most common tax credits available to businesses—and one of the most beneficial to your bottom line.
The credit rewards you for investing in R&D activities that improve your business’s products, services, or operational processes—and ultimately help further your business’s growth. If you qualify, you can apply up to $250,000 of the tax credit to your payroll tax liability. To learn which R&D activities qualify and how to claim the credit, read our full blog post.
If you’re already a pro and taking advantage of these credits, you might find our blog post on preparing for an R&D tax credit audit useful.
Read with Gusto
One more time for the folks in the back, Talk Shop subscribers: I’m Caleb Newquist, Editor-at-Large at Gusto. This is the third go-round for this new section of the newsletter. In each edition, you’ll find things I’ve read recently and thought were worth sharing. I hope you’ll find something interesting every time. Feedback? Email me.
- I really enjoyed Ted Gioia’s eight techniques for judging character. Would be curious if any of you reading have other suggestions.
- A recent poll from Monster found that 37% of respondents have more than one full-time job.
- Kareem on LeBron breaking his scoring record.
- What does Tom Brady do without football?
- An Oregon liquor official had to resign due to accusations of hoarding bourbon.
Fresh from Gusto (and friends)
Gusto customers can get 50% off 3 months of Google Workspace
If you’re interested in using Gusto for payroll, Gusto customers purchasing a new Google Workspace plan are eligible for a limited time offer of 50% off three months of Google Workspace. Instead of setting up work emails manually, you can create emails for new hires automatically and consolidate your billing with Gusto. Customers must purchase a Google Workspace plan through Gusto and complete their Google Workspace account set-up via the instruction email from Google before March 31, 2023 in order for the discount to apply. Learn more and get started here.
Download Bonusly’s 3 Steps to Building Resilient Teams eBook
2022 was a year of constant change—and we weren’t ready for it. As economic conditions continue to be unpredictable, business success in 2023 demands adaptability. Download this free guide and learn everything you need to know about creating more resilient, engaged teams today. Download here.
- A 6-Step Guide to Setting Your Salary as a Business Owner
- What Is a Pay Stub?
- What’s Imputed Income?
- Can You Allow Employees to Have a Negative PTO Balance?
Watchlist
FEB 21: Actionable Strategies to Promote a Culture of Mental Well-Being
Employees today are dealing with more stress, anxiety, and burnout than ever before. As a business owner, investing in your employees’ personal well-being isn’t just a nice thing to do—it’s a necessity. In this webinar, Calm and Culture Amp join forces to discuss how HR teams can help create a workplace culture that prioritizes mental health. You’ll learn why employee engagement and productivity start with mental health, and pick up actionable strategies for improving workplace culture and creating a more positive employee experience. Register here.
FEB 23: How to Save Your Business Thousands with the R&D Tax Credit
ICYMI, we’re running a second session of our popular webinar on the Research & Development (R&D) Tax Credit. If you’re improving your business’s offerings or processes using data, you may qualify for the R&D tax credit, which could reduce your payroll taxes by up to $250,000 a year—and your income tax by an unlimited amount. Gusto’s Head of R&D Tax Credits will break down everything you need to know, and you can get your burning questions answered by tax credit experts. Register here.
MAR 1: Common and Costly Tax Mistakes to Avoid This Season
Save yourself stress, time, and money by getting informed on how to avoid the eight most common tax mistakes the IRS sees small businesses make year after year. Join Ryan Robinson from Bench and Melody Pickle from Gusto to learn more and get your questions answered. Register here.
Want more news and resources? Check out past editions in our archive.
