When you’re running a small business, every dollar counts—and overpaying on your taxes is money left on the table. Fortunately, the IRS offers a variety of deductions that can lower your taxable income if you know where to look. But here’s the challenge: most small business owners don’t take full advantage of what they’re entitled to.
In this post, we’ll break down the top 10 tax deductions that could help you save thousands and keep more of what you earn.
1. Home Office Deduction
If you use part of your home exclusively and regularly for business, you may qualify for a home office deduction. This applies to both homeowners and renters.
✅ What you can deduct:
- A percentage of your rent/mortgage
- Utilities (electricity, water)
- Internet and phone
- Property taxes and insurance
- Repairs and maintenance
Simplified Method:
$5 per square foot, up to 300 sq ft ($1,500 max)
2. Business Mileage
If you use your car for business-related travel—client meetings, supply runs, or off-site jobs—you may be able to deduct your mileage.
✅ Deduction Methods:
- Standard mileage rate (for 2024, it’s $0.67 per mile)
- Actual expense method (gas, maintenance, insurance, depreciation)
Tip:
Keep a mileage log using apps like MileIQ, QuickBooks Self-Employed, or a simple notebook.
3. Office Supplies and Equipment
Everything from pens and paper to printers and laptops is deductible if used for your business.
✅ Includes:
- Computers and accessories
- Desks and chairs
- Software subscriptions
- Postage and mailing costs
Bonus:
Equipment over $2,500 may be depreciated, but Section 179 allows for immediate full deductions in some cases.
4. Marketing and Advertising
Your efforts to promote your business are deductible expenses.
✅ Examples:
- Social media ads
- Google Ads
- Business cards and brochures
- Website development and hosting
- Email marketing tools (like Mailchimp)
5. Business Meals
Did you take a client out for lunch or meet a potential partner over coffee? You can deduct 50% of the cost if it’s directly related to business.
✅ To qualify:
- You must be present
- The meal must be with a business contact
- Keep receipts and note the business purpose
6. Professional Services
Hiring experts to help run your business? Their fees are fully deductible.
✅ Includes:
- Accountants and bookkeepers
- Legal fees
- Business consultants
- Coaches and mentors
7. Education and Training
Investing in your knowledge pays off—and it can reduce your tax bill too.
✅ Deductible expenses:
- Online courses
- Webinars
- Workshops and conferences
- Industry certifications
Note: The education must maintain or improve skills related to your current business.
8. Insurance Premiums
Business insurance is a necessary cost—and a valuable deduction.
✅ Types of insurance you can deduct:
- General liability
- Professional liability (E&O)
- Commercial auto
- Business interruption
- Cybersecurity and data protection
9. Contract Labor and Outsourcing
If you hire freelancers, virtual assistants, or other contractors to help with tasks, their wages are deductible.
✅ What you need:
- W-9 form from contractors
- 1099-NEC issued if you paid over $600/year
Tip: Keep good records and payment receipts to stay compliant.
10. Utilities and Communication Costs
Running a business means staying connected—and those costs can be deducted if they’re business-related.
✅ Deductible examples:
- Phone and internet bills
- Business cell phones
- VOIP services (e.g., RingCentral, Zoom)
- CRM and project management tools
Bonus: Don’t Forget Startup Costs
If you’re just getting started, you may be able to deduct up to $5,000 in startup expenses, including:
- Business formation fees
- Licensing and permits
- Branding and logo design
- Market research
Final Thoughts
Every deduction you claim is more money staying in your pocket—and small business owners need every advantage they can get. The key is keeping organized records, staying compliant, and planning ahead.
If you’re unsure what qualifies or need help setting up a system that works, our team at JTPS Advisory Co. is here to help.