Tax Write-Offs Most Small Business Owners Miss Every Year
Every year, thousands of small business owners pay more in taxes than they should. Not because they want to, but because they overlook simple write-offs that could save them hundreds or even thousands of dollars.
Many people think deductions only apply to big-ticket items like rent or computers. But the tax code is full of smaller, easy-to-miss expenses that can add up quickly when tracked properly.
Here are some of the most commonly missed write-offs and how to make sure you claim them this tax season.
1. Home Office
If you use part of your home exclusively for business, you can deduct a portion of your rent or mortgage, utilities, internet, and maintenance.
The IRS offers a simplified method: $5 per square foot, up to 300 square feet. That equals a potential $1,500 deduction without needing complex calculations.
2. Mileage and Vehicle Expenses
When you drive for business purposes, every mile can save you money.
For 2025, the IRS standard mileage rate is 67 cents per mile. If you drive 5,000 business miles a year, that’s a $3,350 deduction.
Apps like MileIQ or QuickBooks Mileage Tracker make it easy to log your trips automatically.
3. Business Meals
Meals with clients, prospects, or during business meetings are 50% deductible.
Keep the receipt, note who you met with, and briefly describe the purpose of the meeting. These small write-offs can add up quickly, especially if you network often.
4. Equipment and Tools (Section 179)
Under Section 179, you can deduct the full purchase price of qualifying business equipment or software in the year it’s purchased.
This includes items like laptops, desks, and even bookkeeping software. Instead of depreciating them over several years, you can take the full deduction immediately and improve your cash flow.
5. Professional Services
Payments to professionals who help you run your business are fully deductible.
This includes accountants, bookkeepers, attorneys, and marketing consultants. If their services help you operate or grow your business, they count as legitimate expenses.
6. Continuing Education
Courses, certifications, and training programs that enhance your current business skills are deductible.
For example, real estate CE classes, business workshops, or QuickBooks training all qualify if they relate to your current line of work.
7. Software Subscriptions
Monthly subscriptions for QuickBooks, Google Workspace, Zoom, or Canva can all be written off.
If you use the software to manage, market, or communicate for your business, it qualifies as a business expense. Even smaller recurring charges add up to meaningful savings over time.
8. Cell Phone and Internet
If you use your phone or home internet for business, you can deduct a portion of the cost.
For instance, if half of your phone use is for business, you can claim 50% of your monthly bill. Be consistent and realistic with the percentage you report.
9. Business Insurance
Premiums for business liability, errors and omissions, or cyber protection insurance are deductible.
Self-employed individuals may also be able to deduct health insurance premiums, depending on their situation.
10. Bad Debts and Unpaid Invoices
If you provided a product or service, invoiced a customer, and were never paid, that amount may qualify as a bad debt deduction.
Keep detailed records of your attempts to collect the payment, and discuss eligibility with your tax preparer.
How to Avoid Missing Deductions
Most missed deductions happen because business owners wait until tax time to organize months of receipts.
The easiest way to prevent this is to maintain your bookkeeping throughout the year. Consistent recordkeeping ensures every expense is categorized correctly and ready for tax season.
Final Thoughts
Saving money on taxes doesn’t require special loopholes. It simply comes from keeping your books clean and knowing what to look for.
When your financials are organized, you stop overpaying and start maximizing your savings.
If you’re not sure what you might be missing, Red Leaf Bookkeeping can help.
At Red Leaf Bookkeeping, we help small business owners stay organized and tax-ready all year long. Let’s make sure every dollar you spend works in your favor.