- The full credit doesn't kick in till $75K. Most new jobs are well below that.
- If they business is a S-corp/partnership - Obama's proposed income tax increase and FICA limit increases will not be offset by this credit.
- If you are a Schedule C/S-Corp/Partnership - the credit in all likelihood will not be creditable against AMT. Most tax credits are not good for AMT for individuals. So, you might get the credit for regular income tax, but then it'll be taxed right back under AMT.
Basically - the credit is useless for small business. When taxpayers normally talk about tax credits - they never work because the bulk of them are not creditable against AMT.
1 comment:
Do we also need to provide health insurance coverage. I have two employees but they earn good enough to cover their family health coverage. Our margins are low and we hardly make ~40 grand a year with the gross profit. If a health insurance plan need to be provided it further shaves off the margin. I better take fulltime employee and desolve the company just to avoid the headaches. I am getting my citizenship next year. Not yet decided whether I would republican or decmocrat.
:( I hope economy will recover to stay afloat.
:( tough times.
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