For entrepreneurs, taxes can be a stressful component of managing their business. Every business owner likely scrutinizes tax rules and regulations to determine which deductions they can take in order to shave some money off of the final bill. However, there are some deductions you are likely not taking. Small deductions can add up to big savings, so keep these potential deductions in mind when filing your next return.
Make sure you keep track of receipts for office supplies, because you may be able to deduct the expense. According to the IRS, people with home-based offices can deduct, “The business expenses that relate to the business activity in the home [for example, business phone, supplies, and depreciation on equipment], but not to the use of the home itself.” If you’re based out of your home, check your receipts for business related expenses and bring them with you when you file.
Small business owners may not be aware of tax deductions and credits that are available for the benefits they offer to their employees. The IRS lists fringe benefits, unemployment insurance, workers’ compensation and health insurance all as benefits that may be eligible for deduction. Although many of the mandates associated with the Affordable Care Act don’t apply to businesses with fewer than 50 employees, if your company offers an eligible plan to employees, you may be eligible for a tax credit.READ MORE: Chicagoan David Kronfeld Shares Advice To Career Success In New Book
Many business owners further their own skill sets and those of their employees by continuing education. The expenses related to these courses could be tax deductible. An Entrepreneur article titled 15 Small-Business Tax Deductions states, “You may deduct the cost of continuing education or certification for the business you’re already in, but education that qualifies you for a new line of business is not deductible.” Your business may also be able to deduct a portion of expenses for industry related publications and trade shows.
Along with those listed above, there are many small deductions for which your business may be eligible. Before preparing your return, schedule a meeting with your tax attorney or CPA to see if there are deductions you may not have considered. Just be sure to save the receipts.
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This article was written by Alaina Brandenburger for CBS Small Business Pulse.