You work hard enough to ensure that your small business survives, and you don’t want to overlook any potential tax deductions that can maximize your savings.
In this article, we’ll cover the most important small business tax changes for 2023 and also provide information about solar energy installation credits and EV vehicle credits. Then, we’ll list all possible tax write-offs you can use, whether you’re a sole proprietor or running a small business with employees.
Remember that different deductions are available depending on your business’s structure – sole proprietorship, LLC, S-Corp or other classification.
Maximum net earnings. The maximum net self-employment earnings subject to the social security part of the self-employment tax is $160,200 for 2023. There is no maximum limit on earnings subject to the Medicare part.
Standard mileage rate. For 2023, the standard mileage rate for the cost of operating your car, van, pickup, or panel truck for each mile of business use during 2023 increased to 65.5 cents a mile.
Redesigned Form 1040-SS. For 2023, Schedule(s) C and SE (Form 1040) are available to be filed with Form 1040-SS, if applicable. For additional information, see the Instructions for Form 1040-SS.
