As a small business owner, every dollar matters — especially during tax season. While you’re likely aware of major deductions like rent and payroll, there are several overlooked expenses that could reduce your tax bill. Here are five commonly missed deductions you should know about.
1. Home Office Deduction
If you use a part of your home regularly and exclusively for business, you may qualify for a home office deduction. This can include a portion of your rent, mortgage interest, utilities, and internet.
2. Business Mileage
Driving for business purposes? You can deduct the miles at the standard IRS rate. Be sure to track mileage carefully with a log or app — commuting doesn’t count, but client visits do.
3. Software & Subscriptions
Tools like accounting software, design tools, or paid platforms (like Zoom or Canva) used for your business can be fully deductible.
4. Professional Services
Fees paid to your accountant, lawyer, or business consultant are deductible. If you’re paying for expert help to keep your business compliant and efficient, that’s tax-saving money well spent.
5. Continuing Education
Courses, seminars, or certifications directly related to your business or profession can be deducted. Learning more to serve your clients better also helps your bottom line.
Final Tip:
Every business is different, so always keep thorough records and consult a tax professional to ensure you’re not leaving money on the table.