Mid-Year Tax Planning for Small Business Owners

It is mid-year. There is still time to adjust wages, estimated payments, and retirement funding. This is a free guide from Sabih Shafi, EA, an Enrolled Agent.

• S-corp salary: reasonable compensation is audited, so benchmark the salary.

• QBI deduction: the deduction is up to 20%. SSTB phase-outs apply. Above the threshold, the deduction is limited by W-2 wages and UBIA.

• Safe harbor, current-year: pay at least 90% of current-year tax.

• Know the SEP, new-plan, and sole-proprietor retirement deadlines.