How can we help?
Need something cleared up? Here are our most frequently asked questions.
General FAQs
There are several ways to get involved with Good Circles, including becoming
a partner, using our platform to make purchases and support local businesses
and non-profit organizations, and spreading the word about our mission and work in your community.
The tax deduction for charitable donations made by US companies is
generally limited to 60% of their taxable income.
It’s important to note that a tax deduction is not the same as a tax credit. A tax deduction reduces a company’s taxable income, which in turn reduces the amount of tax owed. A tax credit, on the other hand, is a dollar-for-dollar reduction in the amount of tax owed.
The rules around charitable donations and tax deductions can be complex, but there are resources available to help businesses navigate them. The IRS provides guidance on charitable contributions and deductions, and there are also accounting and tax professionals who can assist businesses in understanding how charitable donations can benefit them.
A tax deduction and a tax credit are both ways to reduce the amount of tax
owed by an individual or business, but they work in different ways.
A tax deduction is an expense that is subtracted from a person or business’s
taxable income, reducing the amount of income that is subject to tax. A tax credit, on the other hand, is a dollar-for-dollar reduction in the amount of tax owed.
Tax credits are generally more valuable than tax deductions because they
provide a direct reduction in the amount of tax owed, rather than reducing taxable income. However, tax credits are often more difficult to qualify for than tax deductions, and they may be subject to limits or other restrictions.
It’s important to note that tax deductions and tax credits are not the same as tax exemptions. A tax exemption is a portion of income or an expense that is not subject to tax at all, rather than just being deductible or creditable.
- Charitable contributions:
https://www.irs.gov/charities-non-profits/charitable-organizations/charitable-contribution-deductions - Business expenses:
https://www.irs.gov/businesses/small-businesses-self-employed/deducting-business-expenses - Tax credits for businesses:
https://www.irs.gov/businesses/small-businesses-self-employed/business-tax-credits - Limitations on deductions:
https://www.irs.gov/businesses/small-businesses-self-employed/limitations-on-business-deductions
These links provide general information on the tax rules and regulations for businesses, but it’s important to note that specific circumstances may vary and businesses should consult with a tax professional for personalized advice.