Quarterly taxes are a reality for most small business owners, and as Q2 rolls on, it’s worth asking: Are you leaving money on the table?
Many entrepreneurs unintentionally overpay by missing common—but legitimate—tax deductions. These overlooked expenses may seem small at first, but together, they can amount to thousands in annual savings. Here’s a breakdown of the top deductions small business owners and freelancers often miss, especially in the second quarter.
1. Home Office Deduction
If you’re using a portion of your home exclusively and regularly for business, the IRS allows you to claim the home office deduction. This includes expenses like rent, utilities, insurance, and even depreciation if you own your home. Use either the simplified method (standard square footage rate) or the actual expense method. Just remember: mixed-use areas like the kitchen table usually don’t qualify.
2. Business Use of Your Vehicle
Whether you’re meeting clients, making deliveries, or running errands for your business, miles count. You can either deduct the standard mileage rate (which changes annually) or actual vehicle expenses (gas, repairs, insurance). Apps like MileIQ or Everlance make it easy to track business-related miles.
3. Professional and Administrative Services
Any service you hire for your business—legal consultation, bookkeeping, graphic design, marketing assistance, or coaching—is tax deductible. Even virtual assistants or independent contractors count. Just make sure to issue 1099s for any contractor you paid more than $600 during the year.
4. Marketing and Advertising Costs
Marketing isn’t just a business expense—it’s a growth strategy. Print materials, Facebook or Google ads, website domains, SEO services, social media management, and even business cards are deductible. Small businesses often forget to track all of these smaller digital advertising efforts.
5. Continuing Education and Professional Development
Any course, class, book, or conference that enhances your skills in your current line of work is a deductible business expense. Whether you’re attending an industry conference or subscribing to a trade publication, keep the receipts and records. This includes online platforms like LinkedIn Learning, Coursera, or even YouTube premium subscriptions if you use them for business research.
6. Software and Technology Tools
Subscriptions to tools like Canva, Adobe, Dropbox, Zoom, QuickBooks, Slack, or industry-specific CRMs are deductible as long as they are used for business purposes. Just be sure to differentiate between personal and business use when applicable.
Every dollar you deduct is one less taxed by the IRS. Want to be sure you’re claiming everything you’re entitled to? Let’s review your Q2 expenses together. Book a free consultation now and discover how strategic bookkeeping can put more money back in your pocket.