As we move into the 2025 filing season, individuals and business owners alike are facing increasingly complex tax landscapes. With recent changes to federal and state and local tax laws, strategic preparation is no longer optional — it’s essential. For business owners in Michigan, particularly those operating in Detroit, understanding your corporate tax obligations and available tax strategies can make a meaningful impact on your bottom line.
At Taxperts, we specialize in guiding clients through detailed tax planning and compliance, especially where local and federal regulations intersect. From Detroit business tax law to the IRS code, we help businesses minimize liabilities and uncover every opportunity for savings.
📁 Organize Business and Personal Tax Documents Early
Missed deductions and filing delays often result from poor document management. Whether you’re an individual filer or a business owner, gather essential documents such as:
- W-2s, 1099s, and K-1s
- Business expense receipts
- Mortgage interest and charitable donation records
- Health insurance forms (1095 series)
- Retirement contribution statements
Pro tip: Use secure cloud storage to organize and back up all tax-related documents for easier filing and audit preparedness.
💰 Optimize Deductions and Credits — Especially for Businesses
Deductions reduce your taxable income, while credits reduce the tax you owe. For businesses, deductions like the home office expense, vehicle use, and health insurance premiums are often overlooked but can be substantial.
For individual taxpayers, look into:
- Earned Income Tax Credit (EITC)
- Child Tax Credit
- Education-related deductions
- Retirement savings credits
Business owners should also assess eligibility for tax-saving opportunities related to their entity structure — especially pass-through entities.
📜 Consider Strategic Elections Like Michigan’s Pass-Through Entity Tax
Under current law, there’s a $10,000 cap on state and local tax (SALT) deductions for individuals. However, Michigan has introduced a workaround: the Elective Pass-Through Entity (PTE) Tax, which allows certain businesses to opt into paying state taxes at the entity level rather than the individual level.
This election can significantly reduce the tax burden of businesses by making those state taxes federally deductible as business expenses — bypassing the SALT cap. Eligibility, filing deadlines, and method of tax accounting (cash vs. accrual) all play a critical role in whether this election benefits your business.
🏦 Max Out Tax-Advantaged Retirement Contributions
Reducing taxable income isn’t just about deductions — it’s also about planning. For 2025, retirement account contribution limits are:
- 401(k): $23,000 (plus $7,500 catch-up if age 50+)
- IRA: $7,000 (plus $1,000 catch-up if age 50+)
If your business sponsors a retirement plan, make sure contributions are made before deadlines to take full advantage of these benefits.
🖥️ File Electronically and Use Direct Deposit
Electronic filing increases accuracy and security, and often results in faster refunds — typically within 21 days when choosing direct deposit. Professional tax software also helps apply the most recent tax laws and detect errors before submission.
⚠️ Avoid Common Filing Mistakes
Simple errors can delay refunds or trigger audits. Watch out for:
- Incorrect Social Security numbers or EINs
- Mismatched names
- Missing signatures
- Overlooked income from side gigs or investments
- Using outdated addresses
Working with a qualified CPA ensures your return is accurate, timely, and maximizes your deductions.
👩💼 When to Consult a Professional
Major life and business changes — such as starting a business, forming a corporation, buying property, or receiving IRS notices — should prompt a consultation with a tax expert.
At Taxperts, we help small businesses and individuals in Michigan and beyond stay ahead of tax law changes, file correctly, and make proactive financial decisions.
Final Thoughts
Navigating the 2025 tax season requires more than just meeting deadlines — it requires smart planning. Whether you’re dealing with corporate taxes, electing into Michigan’s PTE tax, or trying to lower your state and local tax burden, having a clear tax strategy can save thousands. Reach out to Taxperts to schedule your tax consultation and see how our expertise in Detroit business tax law, pass-through entity elections, and proactive tax accounting can position you for a stronger financial year.