After the holidays end and “the most wonderful time of the year” is over, it is time for what many small businesses might consider “the most dreadful time of year.”

Oh yes, it’s tax season!

As CPAs, we don’t fear tax season like others do (let’s be real, we love it). But we understand the fear and anxiety that many small business owners have around it. We also know that hiring the right small business accountant can help you overcome these fears and confidently file your small business tax returns.

To take some of the burden off of you, we have some helpful hints. In our years of working with small businesses, we’ve noticed they overlook A LOT of deductions. Take a look at some of the most frequently missed deductions.

#1 Overlooked Small Business Tax Deduction

Home Office Expenses

With more and more people working at home, you likely perform many of your small business tasks remotely from your house. Guess what? That opens the door for deductions. When you use your residence as a place to work, you can deduct some of your utilities – including your internet bill – maintenance, operating costs for items and equipment you need to be able to work from your home. If you bought a new printer, computer, desk, or anything you needed to run your business, you should share it with your accountant so they can determine what can be deducted.

#2 Overlooked Small Business Tax Deduction

Vehicle Expenses

While you might know that you can deduct your mileage, did you know you can also deduct other vehicle costs like gas, maintenance, and even insurance? When you use your vehicle to perform duties related to your small business, many items can be deducted. It’s essential to keep detailed account records and receipts so you can give these to your accountant.

#3 Overlooked Small Business Tax Deduction

Meal Expenses

Did you meet a client for coffee? Did you take a prospect out for lunch? Certain meal expenses can be deducted.  However, this can be tricky – there is a fine line on what is legit to deduct – so it’s important to keep all of your receipts (even if you don’t think it’s deductible) and present them to your accountant. They will sort through the receipts and the circumstances around the meal to determine if it can be deducted.

#4 Overlooked Small Business Tax Deduction

Health Insurance Premiums

When you start a small business, one of the perks you are leaving behind is employer-sponsored health insurance. If you’re paying for your own plan for yourself, your spouse, or your children, you may be able to deduct your health insurance premiums.

#5 Overlooked Small Business Tax Deduction

Retirement Contributions

If you’re making contributions to a retirement account, you may be eligible for tax deductions. If you are putting money into a 401(k), or a Simplified Employee Pension plan, you need to present your account details to your accountant to ensure it’s deducted from your taxes.

#6 Overlooked Small Business Tax Deduction

Training

Did you attend any workshops, conferences, or training sessions this year to increase your skills? If it’s related to your small business, it can be eligible for tax deductions. If you’re not sure if the event you attended is eligible, work with your accountant to determine if it can be deducted.

Let UpFront CPA Prepare Your Kissimmee Small Business’s Taxes

To ensure you are maximizing your Kissimmee small business’s tax deductions, and to take the fear out of tax season, call our team of accountants at UpFront CPA. Our experts can perform tax preparation services and tax reduction planning.

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