The Top 10 Tax Deductions Most Small Business Owners Miss

Taxes are a regular part of business life, but that doesn’t mean you should pay more than necessary. Every year, small business owners overlook key deductions that could significantly reduce their tax liability. By knowing what to look for and keeping accurate records, you can take advantage of these often-missed opportunities and keep more of your hard-earned money.

Here are 10 common tax deductions many small business owners miss—and how you can make sure you don’t overlook them again:

1. Home Office Deduction
If you have a dedicated space in your home used exclusively for business, you may qualify for the home office deduction. This includes a portion of your rent or mortgage, utilities, and even maintenance costs. Just make sure the space is used solely for business activities.

2. Business Mileage
Driving for work? The miles you put on your vehicle for business purposes can add up quickly. Keep a detailed log of your trips, and you can deduct a standard mileage rate or actual vehicle expenses, such as gas, maintenance, and insurance.

3. Continuing Education and Training
If you attend seminars, webinars, or courses that improve your skills or keep you updated on industry trends, you can often write off the cost of these professional development activities.

4. Marketing and Advertising Costs
Many business owners forget that their website hosting, online ads, social media promotions, and even the cost of printing business cards are all tax-deductible. These expenses can be deducted as long as they’re directly related to promoting your business.

5. Professional Services
Did you hire a consultant, attorney, or bookkeeper last year? The fees you pay for professional services are typically deductible. This includes legal advice, accounting help, and even business coaching.

6. Business Software and Subscriptions
Subscriptions to software services like QuickBooks, project management tools, and even industry-specific apps can be deducted as a business expense. Keeping a list of all your recurring subscriptions can help you track these deductions more easily.

7. Equipment and Office Supplies
From computers and printers to pens and paper, office equipment and supplies are straightforward deductions. Make sure to keep receipts and note whether the item is used entirely for business or shared with personal use.

8. Business Insurance Premiums
Business-related insurance policies—such as liability insurance, property insurance, and even cyber insurance—are deductible expenses. Check with your insurance provider to ensure you’ve accounted for all relevant premiums.

9. Retirement Plan Contributions
If you’ve set up a Simplified Employee Pension (SEP) IRA, a Solo 401(k), or another retirement plan, your contributions may be tax-deductible. This not only helps you save on taxes now but also secures your financial future.

10. Health Insurance Premiums (for Self-Employed)
If you’re self-employed, you may be able to deduct health insurance premiums for yourself, your spouse, and your dependents. This is a significant benefit that’s often overlooked.

Conclusion
Taking advantage of these often-missed deductions can make a big difference in your bottom line. The key is to keep detailed records, save receipts, and consult with a tax professional if you’re unsure which deductions you qualify for. Don’t leave money on the table—start tracking these expenses today to maximize your savings come tax time.

📢 Want to make sure you’re claiming every deduction you deserve? Tally Titans Bookkeeping is here to help. Contact us today!