Tag: Texas bonus deduction

Compensation Deduction Cap ($370K) for 2025

Texas Franchise Tax law allows a deduction for compensation paid to employees ,  but it’s capped. For 2025, the maximum deduction per person is $370,000. For founders and key employees, smart planning around this cap can reduce your Texas Franchise Tax without triggering IRS or state-level scrutiny. What Is the Compensation Deduction Cap? Under Texas […]

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