Don’t Pay the IRS More than You Owe

Tax season doesn’t have to be a headache—especially when you know how to keep more of your hard-earned money. As a small business owner, you’re probably already aware of some standard deductions, but there might be a few hidden gems you’re missing out on. This checklist is designed to help you uncover those lesser-known deductions and make sure you’re maximizing your savings and identify any tax deductions you might be missing so that you do not pay the IRS more than you owe!

Download Your Ultimate Small Business Tax Deduction Checklist here and let the savings begin!

1. Home Office Deduction: Your Space, Your Savings

If you’re running your business from home, your couch isn’t just a comfy place to work—it could also be saving you money. The home office deduction lets you claim a portion of your home expenses as business expenses.

• Is it Deductible? Your home office must be used exclusively for business. No mixing in a bit of Netflix and chill.
• What You Can Deduct: A percentage of your mortgage interest, rent, utilities, insurance, and even those pesky repairs.

Don’t worry if math isn’t your strong suit—the IRS offers a simplified method: deduct $5 per square foot of your office, up to 300 square feet. Easy, right?

2. Vehicle Expenses: Miles of Deductions

Whether you’re zipping around town meeting clients or just making a supply run, those miles could be putting cash back in your pocket.

• Standard Mileage Rate: For 2024, the IRS lets you deduct $0.58 per mile. It’s straightforward and great for those who prefer to keep things simple.
• Actual Expenses: If you like to track every penny, this method lets you deduct the real cost of running your vehicle—gas, maintenance, insurance, the works.

Pro tip: Keep a mileage log. It’s your best friend when tax time rolls around.

3. Retirement Plan Contributions: Future-Proof Your Finances

Not only do retirement plans secure your future, but they also come with sweet tax benefits. It’s like giving your future self a bonus, with the added perk of reducing this year’s tax bill.

• SEP-IRA: Contribute up to 25% of your net earnings (up to $66,000 for 2024), and watch your tax bill shrink.
• Solo 401(k): For the solopreneur, this plan lets you contribute up to $22,500, plus 25% of your earnings. Did someone say savings?
• SIMPLE IRA: It’s not just a name—this plan is straightforward and lets you contribute up to $15,500, with an extra $3,500 if you’re over 50.

4. Health Insurance Premiums: Healthy Wallet, Healthy Business

Paying for your own health insurance? The self-employed health insurance deduction lets you claim those premiums as a deduction, reducing your taxable income.

• Eligibility: You must not be eligible for any other employer-sponsored health plan, but if you’re self-employed and covering your spouse and dependents, you’re good to go.

It’s an above-the-line deduction, meaning it comes off your gross income—a win for your wallet.

5. Business Travel Expenses: Turning Miles into Money

Jetting off for business doesn’t just broaden your horizons; it can also narrow your tax bill. Business travel expenses are deductible, as long as your trip is for business purposes.

• What You Can Deduct: Airfare, hotels, rental cars, meals (50%), and even those little tips for services. Just make sure your travel involves an overnight stay, or it’s a no-go.
• Keep It Legit: Be sure to document everything—receipts, itineraries, and the purpose of your trip. The IRS loves a well-organized traveler.

6. Marketing and Advertising Costs: Invest in Your Brand and Save

Every dollar you spend on marketing and advertising is an investment in your business—and a tax deduction waiting to happen.

• What’s Covered: Print ads, online campaigns, social media promotions, and even your snazzy new business cards.
• Pro Tip: If you’re sponsoring a local event or giving away branded swag, those costs are deductible too.

7. Professional Services and Fees: Help That Pays Off

Hiring professionals (like us) to help with your business can be a wise move—and those costs are deductible.

• What to Deduct: Legal fees, accounting services, and yes, even your favorite bookkeepers (like us!).
• Don’t Forget: Membership fees for trade organizations and professional subscriptions are deductible, too.

Maximize Your Deductions with Perlinger Consulting

At the end of the day, it’s not just about finding every possible deduction—it’s about keeping your finances in top shape so your business can thrive. That’s where we come in. At Perlinger Consulting, we specialize in helping small businesses navigate the complexities of bookkeeping and tax season. Let’s make sure you’re getting every deduction you deserve. Ready to save more and stress less? Contact us today. We partner with certified tax professionals to help you every step of the way.

Check out the Small Business – Self Employed Tax Center to gain more clarity on IRS rules and regulations.

Disclaimer: This blog is meant for educational purposes only. Articles contain general information about accounting and tax matters and is not tax advice and should not be treated as such. Do not rely on information from this website as an alternative to seeking assistance from a certified tax professional, experienced accountant or bookkeeper.