2017 Taxes a Pain for Chiropractors? 5 Savings Tips.
Nearly every chiropractic office in America is considered a small business. Unfortunately, because of this we often see chiropractor taxes sky high. We’ve all seen how small businesses tend to get the brunt of the tax code. But there’s good news to be had! You can actually get a reduction in your overall taxability through a variety of creative, unique, and, this goes without saying, completely legal methods.
The BIG NEWs for 2017 is that you might actually be eligible for a 50% tax credit if you build an accessible website. But first thing’s first. What’s an accessible website?
An accessible website is a site that is designed to meet the needs of individuals who might have certain handicaps, like hearing loss or visual impairments. Navigating the world online is becoming more and more common, however, if a website is not accessible these individuals won’t be able to know what it is about and will have a harder time using it.
Website accessibility falls under the ADA – Americans With Disabilities Act. Under this act, businesses must make certain accommodations to those with handicaps so as to present a fair opportunity of access across the board.
Get An Accessible Website, Get a 50% Tax Credit
Curious about eligibility? Here are some things to know about this credit and what it means if you choose to make your chiropractor website accessible.
The tax credit is available to businesses who have made $1,000,000 or less in the previous year or have 30 or fewer employees. This tax credit can be used to cover the cost of access expenditures up to $10,250 (maximum credit of $5,000). In addition to being used to remove barriers or offer accessible formats, it can also be used to create an accessible website that has proper color contrast, tagging, and more. (Source:ada.gov)
Here are some other creative ways to save money. Remember that while each one is an option, they might not be right for you. As always, check with your tax professional before choosing one of these as a part of your strategy.
Hire your family members | You can actually hire adult children to care for children under 16 years of age and get a decent tax break. Children 0-7 get a maximum deduction of $7,000 and children 7-16 are eligible for a $4,000 deduction.Additionally, if you can find an appropriate role for children of yours that are under 18 (answering phones, scheduling appointments, cleaning your practice, etc.) and those under 21, you can save money because:
Children under 18 do not pay payroll taxes, Social Security, Medicare, or unemployment taxes. Children under 21 do not pay unemployment taxes.
Take advantage of medical benefits | If you set your business up as a corporation, you’re in for major chiropractic office savings. This is because you are actually your own employee in this instance and can maximize medical benefits by writing off medical bills as a business expense (by creating a Medical Expense Reimbursement Plan). Get in touch with a qualified tax professional to learn more about how you can use medical expenses to lower your taxes and take care of employees at the same time!
Be choosy about retirement | Understanding the best retirement plan for you and your employees will depend on your budget. Connect with a retirement planning company and talk with them about what you can offer and how that might impact what you choose to do.Remember, there is a range of options available to you. From profit sharing to 401(k) to define benefit plans and everything in between, making this decision is something you need to work with a professional on. However, by getting the selection of your plan right you can rest confident that you’re choosing the best option for both future and current expenses.
- Always plan ahead | Major changes were just made to the tax code that will take effect next year. This means that now is the time to start planning for your tax plan. Make sure you hire someone who is experienced and understands what your goals are. This will ensure that you are given the most accurate information needed to actually reach those goals.It’s not enough to just watch the news or read a quick article on the changes that were made. Truly understanding them is critical to making sure you aren’t doing something that’s either wrong or will cause more problems down the line because you missed a new rule.