Top 10 Tax Deductions Most Small Business Owners Miss

1. Home Office Expenses

If you use part of your home exclusively for business, you may qualify for the home office deduction. This includes a portion of rent or mortgage, utilities, insurance, and repairs. The IRS also allows a simplified method: $5 per square foot of office space (up to 300 sq. ft.).

2. Mileage and Vehicle Use

Business travel in your car adds up quickly. You can either deduct actual expenses (gas, insurance, repairs) or use the IRS standard mileage rate. Keeping a mileage log or using an app helps ensure every trip is counted.

3. Software and Subscriptions

From QuickBooks to Canva, Dropbox to Zoom, many digital tools are fully deductible. These are often forgotten because they’re small monthly charges, but added together they can significantly reduce your taxable income.

4. Marketing and Advertising

Did you run Facebook ads, print flyers, sponsor a local event, or build a website? These costs are 100% deductible. Even small promotional activities, like branded business cards or giveaways, qualify.

5. Professional Services

Accountants, attorneys, consultants, and even tax preparers are deductible. The IRS recognizes that expert advice is essential to running a business. If you’re paying for compliance, contracts, or advisory help, make sure it’s claimed.

6. Continuing Education

Workshops, seminars, certifications, and even online courses related to your field can be deducted. If the training maintains or improves skills needed in your business, it qualifies. That includes textbooks, online learning platforms, and industry conferences.

7. Business Insurance

Liability, malpractice, errors and omissions (E&O), and property insurance premiums are all deductible. Even business interruption insurance may count. If you have policies in your business’s name, they should be listed on your tax return.

8. Bank and Payment Processing Fees

Merchant account fees, PayPal/Stripe charges, and bank service fees are deductible. They may seem minor, but if your business processes dozens or hundreds of transactions monthly, these costs add up.

9. Phone and Internet

If you use your personal phone or home internet for business, you can deduct the portion that applies to work. A simple method is to calculate the percentage of business use vs. personal use and apply it to the bill.

10. Charitable Contributions (Business Related)

While personal donations have their own rules, businesses that sponsor events, donate products, or support community causes often qualify for deductions. For example, if your company sponsors a local sports team and your logo appears on uniforms, that’s a marketing expense.

Bonus Tip: Keep Records Year-Round

The biggest reason deductions are missed? Poor recordkeeping. Many entrepreneurs try to reconstruct expenses at the last minute and forget half of what they spent. Using bookkeeping software, keeping receipts, and reconciling monthly will ensure you maximize every eligible deduction.

The Bottom Line

Tax deductions are designed to support business growth, but they only help if you use them. Each dollar deducted lowers your taxable income—and in turn, your tax bill. If you’re not sure whether something qualifies, it’s worth asking a professional.

👉 Pro Tip: Even if you missed deductions in prior years, you may be able to amend returns and recover refunds.