Answers to Your Cash Flow
Margie Ballard
Could you be leaving money with the Federal, State, and/or Local government? The answer is probably “YES”. Many businesses are eligible for tax credits and incentives for various reasons, including: 1) the way you do business, 2) your location, 3) your employees, or 4) the growth of the business. The credits may cover 100% of your tax liability, including withholding tax for Georgia if you have no income tax. While deductions reduce your amount of taxable income, credits cut your actual tax bill, dollar-for-dollar. A $1,000 tax credit reduces your tax liability by $1,000. A tax deduction of $1,000 will reduce your tax liability by your tax rate or $350 at a 35% tax rate.