What it means: Filing taxes as a small business owner can be daunting. Tax expert Micah Fraim, CPA, provides answers to questions submitted by small business owners on common and more complex tax issues.

Our take: “As Tax Day approaches, although we know Tax Day for many is ongoing throughout the year not just on April 15, we again wanted to provide realistic and helpful information for small business owners as we move into 2025. NFIB is thrilled to have Micah back to talk through small business planning,” said Holly Wade, NFIB Research Center Executive Director.

Take Action: Expiration of the 20% Small Business Tax Deduction would make filing taxes more difficult and cause a massive tax hike for small business owners. Urge Congress to make the deduction permanent now!

On March 5, NFIB held its monthly webinar series featuring Micah Fraim, CPA of Fraim, Cawley & Company, Certified Public Accountants. Fraim answered top-of-mind questions surrounding taxes from small business owners throughout the webinar.

“The newer thing that we’re kind of having to plan with for people and warn them about is that the qualified business income deduction, which has been around since 2018, that is supposed to sunset at the end of this year. So, the 2025 tax year, unless it gets extended, will be the last year that we get that 20% deduction,” explained Fraim. “A lot of the ways that we’ve set people’s salary levels and the way we’ve structured things has been based on optimizing for that, which our strategies are going to have to shift a decent bit for a lot of people if that does go away.”

Along with questions about the massive tax hike if the 20% Small Business Tax Deduction expires, Fraim answered questions ranging from offsetting short term capital gains, tax implications of switching the business structure, the alternative minimum tax, and filing amendments for delayed employee retention credits.

Join next month’s webinar on April 2 with Tim Coons Esq. on employment-related legal topics. To hear more about a variety of tax issues, the “Ask the CPA” webinar is available to watch on-demand.

Take Action: Benefits from the 20% Small Business Tax Deduction are set to expire at the end of the year. Urge Congress to make the deduction permanent now!