How you can get tax breaks for hiring the handicapped
The topic of this article is how you can get tax breaks for hiring the handicapped.There are a number of different tax breaks out there for businesses that if you are savvy when it comes to taxes you can take advantage of.Now, you can do something as drastic as relocating your business to take advantage of tax breaks offered by different communities.Or you can do something like hiring the handicapped, something that will not only help you get tax breaks, but will also help people who are in need of your assistance and who will greatly benefit from these hiring practices.
In 2005, the Senate passed a bill that was intended to help small businesses survive the minimum wage increase.Because the increase in the minimum wage will naturally hit small businesses harder than large businesses, the Senate included a number of different and potential tax breaks in the bill designed to ease the burden of paying workers more money.The tax breaks are aimed at restaurants and retailers.The bill also gives tax breaks to anyone who hires anyone who depends on food stamps or welfare.
You can also receive tax benefits if you hire anyone from historical difficult to hire groups, like the handicapped, the disabled, or ex-convicts.This Senate measure ends up providing around 8 billion dollars in tax breaks and tax incentives for small businesses.If you happen to own a restaurant or a retail store, then you can receive accelerated tax benefits if you improve your facility. If you hire someone with disabilities or someone who is handicapped, then you qualify for a five year extension on the work opportunity tax credit.This work opportunity tax credit is the tax break that you get for hiring someone who is handicapped or disabled.
The government is so eager for you to hire these generally underprivileged people that states such as California offer even more tax breaks than you would get from the federal government.In California, if you open up a business in what is considered a blight zone or an economically depressed zone, and you hire the disabled or the handicapped, then you get an even bigger tax break.You save money, but you are also helping the community recover and you are helping people who desperately need work but probably wouldn't be able to get it anyway.
Here are some basic tax breaks that you can receive as an employer who hires someone who is disabled or is handicapped.
- You can actually receive a tax break if you don't even hire someone who is handicapped, but you actually make your workplace more disabled person friendly.You can do this by adding ramps to your building, by making vehicles more accessible, and things like that.For more information, look at IRS Publication 535, Chapter 8.
- You can receive a tax credit, which reduces your tax instead of simply your taxable income.You can receive this tax credit if you are a small business and you spend money to make your business accessible.See IRS Form 8826 for more information on this tax credit.
- You should consult an accountant or a tax consultant or a tax lawyer if you want more information on the significant tax benefits that are out there and waiting for you if you are an employer who agrees to employ persons who are disabled or handicapped.You will be required to make your workplace accessible, but you should have a disabled accessible workplace anyway.
- There are significant tax benefits for business who hire those who are handicapped or disabled.The government is making it even more financially beneficial to your business.You should contact your local IRS office, and also talk to an accountant or a tax specialist so that you can get details on how to ensure the proper paperwork is filled out so that you can do a financial benefit for yourself and a significant lifestyle benefit for the handicapped.