Tax time can be overwhelming for business owners and individuals alike, but one way to make it easier is by taking full advantage of all the tax deductions you’re entitled to. A good bookkeeper can help you identify those deductions, which means you can lower your tax bill. Here are a few commonly missed deductions you might want to keep in mind.
1. Home Office Deduction
If you run your business from home, you could qualify for the home office deduction. The space must be used only for business purposes. You can deduct a percentage of your mortgage or rent, plus some utilities and insurance.
Tip: Even if you use a small space at home, like a corner of a room, you may still qualify as long as it’s strictly for work.
2. Vehicle and Travel Costs
Using your personal car for business means you can deduct related expenses. You can either track the exact expenses, like gas and repairs, or use the IRS’s standard mileage rate. Travel for business, such as flights, hotels, and meals, can also be written off.
Tip: Keep a log of your business miles, or use an app to help you keep track, so you’re not scrambling at tax time.
3. Education and Training
Money spent on improving skills for you or your employees can be deducted. This includes classes, online courses, and even books or other training materials that relate to your job.
Tip: If the education helps you in your current line of work, it qualifies. Education for a new career doesn’t count.
4. Office Supplies and Equipment
Basic office items like paper, pens, computers, and even software you use for work are all deductible. Even those little expenses can add up over time.
Tip: Save all your receipts, even for small purchases like printer ink and paper.
5. Meals with Clients or Employees
You can deduct half the cost of meals when you’re discussing business with clients or employees. Just keep receipts and jot down who was at the meeting and the business purpose.
Tip: Meals provided to employees during company events or training can be fully deducted.
6. Health Insurance Premiums
If you’re self-employed and paying for your own health insurance, you can deduct the premiums for yourself, your spouse, and your kids.
Tip: This deduction is available even if you don’t itemize, but only if you aren’t eligible for an employer-subsidized plan.
7. Retirement Contributions
Contributing to retirement plans like a SEP IRA or Solo 401(k) can help reduce your taxable income. Even better, you can contribute until the tax filing deadline and still have it count for the previous year.
Tip: Consider setting up a retirement plan for your employees too, which can also be deducted.
8. Startup Costs
If your business is new, you might be able to deduct some of the costs of getting it off the ground. Legal fees, marketing expenses, and research costs can be deducted in the first year, up to a limit.
Tip: Some costs might need to be spread out over several years, so check with a tax expert.
9. Advertising and Marketing
Money spent on promoting your business—such as online ads, brochures, or website development—can be deducted. This includes expenses for digital marketing and social media management.
Tip: Don’t forget to include costs for any giveaways or events used to promote your business.
10. Unpaid Invoices
If you’ve done work for a client and haven’t been paid, you may be able to write off the bad debt. This is especially important for businesses that allow customers to buy on credit.
Tip: To claim this, you’ll need to show that you made efforts to collect the debt but were unsuccessful.
How Accredited Bookkeeping Can Support Your Business
At Accredited Bookkeeping, we understand the challenges small businesses face when it comes to managing finances. We’re here to help you streamline your bookkeeping processes, avoid unnecessary financial errors, and gain greater clarity about your financial health. Our services are designed to fit the specific needs of your business, giving you peace of mind while you focus on growth.
Contact us today for a free consultation and discover how we can make bookkeeping easier for you.
📧 marianne@accreditedbookkeeping.com
Marianne Kirwan
📞 352-626-0116
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