Most small business owners overpay in taxes — not because they’re doing anything wrong, but because they’re unaware of how many small business tax deductions they’re entitled to. And with the tax code changing constantly, it’s no surprise people miss legitimate business tax write offs every year.
Here’s the bottom line:
If you’re not tracking your deductions properly, you’re paying tax on money you should be keeping.
Let’s walk through the most commonly missed deductions and how to avoid those unnecessary tax bills.
1. Home Office Deduction
This is one of the most overlooked tax deductions for small business owners, especially for people who run a business from home part- or full-time.
If you use a portion of your home exclusively for business, you may qualify.
You can use the simplified method ($5/sq ft) or deduct a percentage of your actual expenses like utilities, rent or mortgage interest, and insurance.
This is a high-value deduction when it’s done correctly — so document the space and keep those records organized.
2. Mileage & Business Vehicle Use
The business mileage deduction is often missed because people forget to track it throughout the year.
If you’re driving to meet clients, stop at the bank, pick up supplies, or visit job sites, that’s deductible.
Your commute to and from home? Not deductible.
Use a mileage app so you’re not piecing this together at year-end.
3. Professional Services & Outsourcing
Anything you pay to keep your business running smoothly usually counts as a deductible business expense — including:
- CPA services
- Attorneys
- Bookkeepers
- Consultants
- Independent contractors
These are all legitimate business tax write offs. If you rely on professional support, you should be deducting it.
4. Health Insurance Premiums for the Self-Employed
If you’re self-employed and pay for your own health, dental, or long-term care insurance, the premiums may be deductible for you and your family.
This is one of the most overlooked self-employed tax deductions, and it can significantly reduce taxable income.
5. Retirement Contributions
Retirement plans like a SEP IRA, Solo 401(k), or SIMPLE IRA not only help you plan for your future — they’re also excellent tax deductions for small business owners.
These contributions lower your taxable income while allowing you to build long-term wealth.
If you’re not sure which plan fits your situation, that’s a great time to talk with a CPA.
6. Equipment & Technology
Buying equipment or technology for your business? You may be able to deduct the full cost.
This includes:
- Laptops and computers
- Office furniture
- Tools and machinery
- Software and subscriptions
If it helps you run your business, keep the receipt.
7. Education, Training & Certifications
Courses, conferences, webinars, and continuing education that improve or maintain your professional skills are usually deductible.
These often fall under continuing education deductions, and business owners skip them simply because they assume it’s “personal.” It isn’t — not when it improves your current trade.
Bonus: Business Meals
Yes, you can deduct 50% of business meals — as long as the meal has a legitimate business purpose.
You’ll need:
- The date
- Who you met with
- The amount
- The business purpose
- A receipt (a photo is fine)
Entertainment is not deductible, but the meal attached to a business meeting generally is.
This doesn’t need to be complicated. A simple monthly system is enough to stay on top of your small business taxes:
- Keep digital receipts
- Reconcile your books regularly
- Use bookkeeping software that syncs with your bank
- Stay in touch with your CPA before tax season hits
Doing a small amount consistently is the key to avoiding missed deductions — and messy year-end cleanup.
Running a business is demanding enough. You shouldn’t be giving the IRS more than necessary because of overlooked tax deductions. These are legitimate, straightforward ways to reduce taxable income and keep more of your hard-earned money.
If you want help making sure you’re capturing everything — or need a year-end deduction review — reach out. A quick check-in can save you a lot of stress and a lot of money.
Give us a call or reach out to us: www.hocheisercpa.com.
