Are all restaurateurs with tipped employees able to claim the credit?
Yes, with some limitations. An experienced acountant can help restaurateurs of all sizes understand how to take advantage of the credit. You should be aware of the following: You must owe federal income taxes to claim the credit. Because you can use the 45(B) credit only to the extent your company owes federal income taxes, there may be some restaurateurs those who break even or lose money, and thus have no taxable income who cannot take advantage of the credit. However, with some limitations even operators without federal income tax liability in a particular year may carry the credit back (three years) or forward (15 years) to a year in which they owed, or will owe, federal income taxes. You may not claim both a credit and deduction. Restaurateurs who take the 45(B) credit may not deduct those same FICA taxes as a business expense. Beware the AMT. If you are required to pay an alternative minimum tax (AMT), there is a possibility you may not be able to take full advantage of the FICA
