Small business owners’ view: Line 13 of the 1040 Tax Form is being reinvested in wages, training, equipment, hiring
In a recent virtual summit on small business taxes, U.S. Senator Steve Daines discussed the upcoming tax debates in Congress and their potential impact on America’s small businesses. In the following video, hear how he and four small business owners from across the country see the upcoming policy debates that could impact small business tax relief:
What is the 20% Small Business Deduction doing for your business and employees? How does the amount on Line 13 of your 1040 Tax Form support business growth, employee training, compensation, equipment, or benefits? For one small business owner, the $7,000 her business saved with the Small Business Deduction made a significant change for two of her professional cleaning service employees and their families. In the video above we hear from her and three other small business owners on this issue.
The Small Business Deduction became law in 2017 and it’s important because it allows small businesses to deduct up to 20% of eligible business income when they file their business and personal income taxes together. If your small business is organized as an S corporation, LLC, sole proprietorship, or partnership, you can check line 13 on your 2020 Tax Form 1040 to see your Small Business Deduction. You can also click here for a simple flowchart to determine if you’re benefiting from the Small Business Deduction.