It’s that time of year when businesses start to work on their taxes. And even though next year we’ll see the largest overhaul of the U.S. tax code ever, this is the year you should start to look at what you can do to get the most out of your tax dollars. In fact, now is the time to get in touch with a tax professional and comb through every single expense of yours to see if they can be deducted or not.* You might be surprised to find many expenses like meals can be deducted, as well as business supplies like pens and printer cartridges.
Medical office taxes can be crippling to small businesses and cost your practice a lot of money. By thoroughly looking at opportunities to save, you can keep more money in your practice’s bank account and use it to improve your practice, save for a rainy day, or even give your employees a raise.
Possible 50% Tax Credit for Adding an Accessible Website
This is perhaps the biggest cost-saving effort you can make to save money on your taxes and improve your practice. An “accessible” website is a website that is designed to cater to individuals who have disabilities. This might include those with visual impairments, limited physical mobility or hearing loss.
Consider how much you rely on the internet. Now, imagine trying to access a website to get information or schedule an appointment with a doctor you think might be able to help you, only to find it difficult to navigate because the website doesn’t meet your needs. This is not only frustrating, it also alienates a large percentage of the population that would need your services.
An accessible website should include:
- videos with captions for those who have hearing loss
- proper color contrast
- readable fonts
- appropriate use of alt tags, descriptions, and more
When you create your website to be accessible you’re not only catering to a large percentage of the population who has needs, you’re also ensuring your business is following the ADA – Americans With Disabilities Act.
Medical practices that upgrade to an accessible website are now eligible for up to a 50% tax credit because they are performing improvements that help to improve the experience of those with disabilities. This is why now is the best time to get an accessible website.
Stay Up On Magazine Subscriptions
Every medical practice that’s concerned about meeting their patients’ needs will take the time to provide an optimal experience from start (including on your medical website) to finish. This means that from the moment people step foot in your waiting room they’re comfortable
By providing magazines, newspapers, and any other periodicals you’re offering entertainment to them, which can ultimately be written off as a business expense and reduce your overall taxable income.
If you plan to utilize this method to maximize deductions, make sure you talk to a talk professional and run the numbers so that you aren’t shooting yourself in the foot. Taxes are black and white so it’s important that you have a clear idea of what you can and cannot do.
Use Your Practice’s Account to Pay Fees
By using your practice’s account to pay random fees like tax return fees, dues, subscriptions, etc., you deduct them from either your corporate or practice tax return. This will ultimately help to make sure you have full deductibility.
A tax professional can help find random expenses that you might not think about that can be deducted. For example, your meals can be deducted up to 50% and 100% of meals for up to six special occasions can be deducted provided all employees are invited (all do not need to attend the event). This means you can have special celebrations, holiday parties, and employee celebration parties.
Employ Your Spouse or Family
If your spouse doesn’t work outside of the home, consider employing him or her and paying a salary to help qualify them for social security, child-care credit, and anything else. Be sure to talk with a tax professional about the best way to do this honestly and efficiently.
Another option is to employ your adult children to watch younger children. Children under 7 can get a maximum of $7,000 and children 7-16 $4,000.
Remember, next year’s taxes will be entirely different from this year’s and any other you’ve done before. Get in touch with your tax professional NOW so you can start to plan for how to maximize next year’s changes. This might include getting your accessible website built before the end of the year, offering employee bonuses, or changing how you manage expenses.
Whatever it is, make sure you understand the changes now as opposed to later.
* Optimized360 does not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors.