WASHINGTON – The Internal Revenue Service (IRS) released the 2010 Tax Changes for Small Businesses fact sheet this week. Last year, the Small Business Jobs Act of 2010, along with Patient Protection and Affordable Care Act, provided key tax incentives for small businesses and self-employed individuals. The IRS facts sheet highlights 2010 tax changes and details how taxpayers claim benefits. Senator Mary L. Landrieu, D-La., Chair of the Senate Committee on Small Business and Entrepreneurship and a lead sponsor of the Small Business Jobs Act of 2010, made the following comment on the release on the new tax information:
“Through reforms in our nation’s troubling healthcare system and by providing more than $12 billion in immediate, targeted tax incentives to small businesses, the last two years have been about supporting American’s small businesses. As Chair of the Senate Small Business and Entrepreneurship Committee, it has been my priority to find avenues to improve our nation’s economy and put dollars back into the pockets of America’s entrepreneurs. With tax season upon us, IRS is making sure taxpayers are aware of these important deductions available to them. As we convene the 112th Congress, I will continue to fight for these small businesses to ensure that they continue to receive the tax incentives they need to drive our economy.”
The IRS fact sheet breaks down the tax portions of the Small Business Jobs Act of 2010 and the Patient Protection and Affordable Care Act that are available to eligible small businesses in 2010. The document details the self-employed health insurance deduction, which allows self-employed individuals to deduct their health care costs for payroll tax purposes. In addition, the 2010 fact sheet outlines ways for small businesses to take advantage of the Small Business Health Care Tax Credit and the General Business Credit for Employers as well as higher expensing and depreciating limits for small businesses.
The complete fact sheet with the tax incentives available for small businesses for the 2010 tax year please click here.