Many small business owners and self-employed professionals overpay in taxes simply because they are unaware of the deductions and credits available to them. With tax laws changing frequently, overlooked deductions can result in thousands of dollars in unnecessary tax payments—money that could be reinvested back into your business.

Below are some of the most commonly missed deductions and credits for small business owners, along with guidance on how to claim them correctly.

1. Home Office Deduction

If you operate your business from home, you may qualify for the home office deduction. This applies to self-employed individuals and business owners who regularly and exclusively use part of their home for business purposes.

Eligible expenses may include:

• A portion of rent or mortgage interest
• Utilities
• Internet and phone expenses
• Home repairs and maintenance

2. Business Mileage and Vehicle Expenses

If you use your vehicle for business purposes, mileage and vehicle expenses can be one of the most valuable deductions available.

Deductible usage may include:

• Client meetings and job sites
• Business errands and travel
• Charitable mileage related to business activities

Accurate mileage tracking is essential. Digital apps or written logs help ensure deductions are properly supported.

3. Education, Training, and Professional Development

Many business owners qualify for deductions related to maintaining or improving their professional skills, including:

• Industry-specific courses or certifications
• Continuing education
• Workshops and training programs

These expenses must be directly related to your current business or profession to qualify

4. Health Insurance and Retirement Deductions

Self-employed individuals may be able to deduct:

• Health insurance premiums for themselves and their families
• Contributions to retirement plans such as SEP IRAs or Solo 401(k)s

These deductions can significantly reduce taxable income while supporting long-term financial security.

5. Dependents and Family-Related Tax Benefits

Business owners with dependents may qualify for valuable tax credits, including:

• Child Tax Credit
• Child and Dependent Care Credit
• Credit for Other Dependents

Eligibility depends on income levels, filing status, and household size.

Why Professional Tax Preparation Matters for Business Owners

Tax software can be a helpful starting point, but it often misses deductions unique to small business owners. A professional tax preparer can:

• Identify industry-specific and business-related deductions
• Ensure compliance with IRS rules and documentation requirements
• Strategically reduce your tax liability while minimizing audit risk

Proper planning can improve cash flow and help your business retain more of what it earns.

Stop Overpaying in Taxes

Many small business owners miss deductions simply because they don’t know what to look for. Working with a professional ensures your return is accurate, compliant, and optimized for maximum tax savings.

Schedule a Small Business Tax Review Today

Whether you are self-employed, a sole proprietor, or a small business owner, we will review your tax situation and identify deductions you may qualify for.

Our services include:

• Individual and self-employed tax preparation
• Bookkeeping & Payroll Services
• Trusted small business tax filing, backed by over 40 years of experience
• IRS-compliant filing for confidence and peace of mind

Contact Mike or Charles today to book your tax appointment and file with confidence at (616) 855-3300