As a small business owner, every dollar counts — especially when tax season rolls around. With tight margins and rising operational costs, claiming all the deductions you're legally entitled to can make a big difference in your bottom line. Yet, year after year, thousands of small businesses leave money on the table by overlooking critical deductions.

At Wierenga.Tax, we specialize in helping entrepreneurs and small business owners uncover these hidden savings. Let's dive into some of the most commonly missed tax deductions and how you can make sure you're not overpaying the IRS.

 

1. Home Office Deduction

If you operate your business from home, you may be eligible for the home office deduction — one of the most underutilized write-offs. According to the IRS, your home office must be used regularly and exclusively for business purposes.

You can choose between:

• Simplified method: $5 per square foot of office space, up to 300 square feet.

• Actual expense method: A portion of your rent/mortgage, utilities, maintenance, insurance, and more based on square footage.

🔍 Pro Tip from Wierenga.Tax: Many filers skip this deduction fearing it's an audit red flag. However, with proper documentation, it's a perfectly legitimate write-off.

 

2. Startup Costs

Launching a business comes with expenses — market research, legal fees, branding, website development, etc. The IRS allows you to deduct up to $5,000 in startup costs and another $5,000 in organizational costs during your first year.

Common deductible startup expenses include:

• Business registration fees

• Professional consultations

• Initial marketing efforts

• Equipment and software purchases
  
  

👉 Don't miss this deduction in your first year — and if you did, ask Wierenga.Tax how to amend your prior year's return.

 

3. Health Insurance Premiums

Are you self-employed and paying out of pocket for health insurance? You may be eligible to deduct 100% of your health insurance premiums, including premiums for your spouse and dependents.

This deduction is “above the line”, meaning it reduces your adjusted gross income (AGI) — which can unlock additional tax benefits.

💡 Bonus: Dental and long-term care insurance may also qualify under this deduction.

 

4. Qualified Business Income (QBI) Deduction

Thanks to the Tax Cuts and Jobs Act, many pass-through entities (sole proprietors, LLCs, S-corps, partnerships) can deduct up to 20% of their qualified business income.

However, limitations apply depending on income level and industry type. This is where strategic planning becomes crucial.

📌 Partner with Wierenga.Tax to optimize your QBI deduction — we understand the thresholds and phase-outs that could affect your eligibility.

 

5. Retirement Contributions

Contributing to retirement plans isn't just good for your future — it's also tax-smart. Options like:

• SEP IRA (up to 25% of compensation or $69,000 in 2024)

• Solo 401(k) (employee + employer contribution up to $69,000)

• SIMPLE IRA

...can significantly lower your taxable income.

🌟 Tip: You can even contribute after year-end (before your tax filing deadline) and still deduct it for the previous year.

 

6. Mileage and Vehicle Expenses

If you use a personal or business vehicle for work purposes, you can deduct business-related travel. Choose between:

• Standard mileage rate (67 cents per mile in 2024)

• Actual expense method (fuel, maintenance, depreciation)

Remember to keep a detailed log — date, destination, purpose, and miles.

✅ Wierenga.Tax can help you choose the method that yields the highest deduction.

 

7. Continuing Education and Training

Staying ahead in your industry often means attending workshops, certifications, or online courses. These costs — including travel, lodging, and course fees — are deductible as long as they maintain or improve skills related to your business.

📚 Whether it's a QuickBooks certification or a sales training seminar, you can write it off.

 

8. Depreciation of Equipment and Assets

If you've purchased computers, machinery, or office furniture, you don't have to expense it all at once. Through Section 179, you can fully deduct eligible business equipment (up to $1,220,000 in 2024).

If your purchase doesn't qualify for Section 179, depreciation allows you to recover the cost over time — typically 3 to 7 years.

🏢 Real estate investors can even explore cost segregation studies to accelerate depreciation.

 

9. Professional Services

Expenses related to bookkeeping, tax prep, legal advice, and business consulting are all tax-deductible. These services are essential to keeping your business compliant and financially healthy.

💼 When you work with Wierenga.Tax, our fees are fully deductible — and the insights we provide often save you far more in taxes than the cost of our service.

 

10. Software Subscriptions and Tech Tools

From accounting software like QuickBooks to design tools like Canva or Adobe Suite, any subscription that directly supports your business operations is deductible.

Even your website hosting, email platforms, and cloud storage qualify if used for business.

💻 Track every tool, even smaller monthly costs — they add up quickly over the year.

 

11. Advertising and Marketing

Your spending on:

• Paid ads (Meta, Google, LinkedIn)

• Print and digital ads

• Branded merchandise

• SEO services

• Content creation

...is all deductible. And that includes fees paid to freelance marketers or agencies.

📈 A strong marketing presence helps you grow — and reduce your tax liability.

 

12. Bad Debts (If Using Accrual Accounting)

If you've invoiced a client and they've ghosted you for good, you may be able to write off the uncollected income as a bad debt — but only if you use the accrual accounting method.

Worried about how this works? Wierenga.Tax can walk you through the process and determine if you qualify.

 

13. Business Insurance Premiums

Premiums for general liability, property, cyber risk, professional liability (E&O), or even business interruption insurance are deductible.

🔐 Protecting your business doesn't just give peace of mind — it gives tax relief too.

 

Don't Leave Money on the Table

The U.S. tax code is complex — especially for small business owners who wear many hats. Many of the deductions above require detailed recordkeeping, nuanced interpretation, or a tax strategy tailored to your specific business structure.

That's why smart business owners across the country choose Wierenga.Tax.

 

Why Work With Wierenga.Tax?

✅ Deep Expertise in small business tax law, including S-corp and LLC optimization
✅ Proactive Planning, not just reactive filing
✅ Audit-Proof Documentation strategies
✅ Personalized Advice tailored to your business goals
✅ Affordable, Transparent Pricing with no surprise fees

From quarterly planning to year-end filings, Wierenga.Tax is your dedicated tax partner for growth and peace of mind.

 

Final Thoughts

Missing even a single deduction can cost your business thousands. Rather than trying to figure it all out on your own — and risking mistakes or missed opportunities — let the experts handle it.

Book a free consultation today with Wierenga.Tax and make sure every eligible deduction is working for you — not the IRS.