{"id":3614,"date":"2023-03-03T17:41:08","date_gmt":"2023-03-03T22:41:08","guid":{"rendered":"https:\/\/www.northone.com\/blog\/?p=3614"},"modified":"2025-03-23T16:25:09","modified_gmt":"2025-03-23T21:25:09","slug":"small-business-tax-deduction-checklist","status":"publish","type":"post","link":"https:\/\/www.northone.com\/blog\/accounting\/small-business-tax-deduction-checklist","title":{"rendered":"Small Business Tax Deduction Checklist for 2025"},"content":{"rendered":"\n<p><a href=\"https:\/\/www.northone.com\/blog\/small-business\/business-tax-preparation\">Tax season<\/a> can be a stressful time for many small business owners. When every dollar matters, you want to make sure your 2024 return (filed in 2025) is 100% accurate\u2014but you also don\u2019t want to leave money on the table. That\u2019s where tax deductions come in\u2014and having a clear, up-to-date small business tax deductions checklist for 2025 can help ensure you\u2019re claiming every expense that could benefit your business.<\/p>\n\n\n\n<p>Tax deductions help businesses offset the numerous costs associated with running a business by allowing them to deduct those expenses from their taxable income. No small business owner wants to lose money, and by taking advantage of any deductions you\u2019re eligible for, you can keep more of what you make in your business\u2019s accounts.<\/p>\n\n\n\n<p>Below you\u2019ll find a checklist of small business tax deductions. This list is just the tip of the iceberg\u2014the IRS lists hundreds of possible small business tax deductions\u2014but it will help give you a sense of where you can start looking for opportunities when filing your 2024 taxes in 2025.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_are_small_business_tax_deductions_important\"><\/span><strong>Why are small business tax deductions important?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Starting and running a small business costs a lot of money, but it would be a <a href=\"https:\/\/www.northone.com\/blog\/taxes\/filing-business-taxes\">big mistake<\/a> to assume there\u2019s no way to alleviate some of that burden. Failing to take advantage of small business tax deductions could result in missing out on hundreds or even thousands of dollars you may be eligible to claim, simply because you didn\u2019t know certain expenses were deductible.<\/p>\n\n\n\n<p>The good news is that no matter what kind of business you run, some of your operational expenses can be deducted from your taxes. Read on to see which ones apply to you and learn how you can save money on your return this tax season<strong>.<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"10_common_small_business_tax_deductions\"><\/span><strong>10 common small business tax deductions<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The number of potential expenses associated with operating a business is enormous, and a lot of them are not likely to apply to most situations. Working with a trusted accountant or financial advisor is in your best interest because it removes the burden of identifying all possible deductions from your shoulders and hands it off to someone who knows and keeps up with changes to tax law.<\/p>\n\n\n\n<p>That said, there are some more common small business tax deductions you\u2019ll want to be aware of because they could very well apply to your business. Here are 10 of the most essential tax deductions for small business owners to get you started.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_Start-up_expenses\"><\/span><strong>1. Start-up expenses<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>If you started your business this year, then you may be eligible to claim a deduction for start-up expenses. Entrepreneurs are eligible to deduct <a href=\"https:\/\/www.taxslayer.com\/blog\/blog-tax-deductions-for-new-businesses\/#:~:text=The%20IRS%20allows%20business%20owners,over%20a%2015%2Dyear%20period.\">up to $5,000<\/a> in expenses incurred before their business was started. This could include market analysis or product research costs, designing and printing marketing materials, and any education or training needed to start the business.<\/p>\n\n\n\n<p>If you incurred more than $5,000 in business expenses before starting your business, don\u2019t worry\u2014you can gradually write these costs off over the course of your first 15 years in business. Just be sure you\u2019re only counting relevant expenses from <em>before<\/em> your business was established.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_Business_travel_and_meals\"><\/span><strong>2. Business travel and meals<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Many entrepreneurs don\u2019t realize that meals and travel related to business can be tax deductible. But when you consider that this includes flights, hotels, parking tickets, rental cars and taxis, meals purchased while on a business trip, meals with clients, and meals at company retreats or events, it\u2019s easy to see how those costs might add up\u2014and why being able to deduct those expenses is so helpful.<\/p>\n\n\n\n<p>To claim these expenses, the travel must be considered ordinary and necessary\u2014not extravagant or personal\u2014and directly related to your work. You\u2019ll need to document the cost, date, and business purpose of each expense.<\/p>\n\n\n\n<p><em>(Note: In 2025, most business meals are only <a href=\"https:\/\/www.irs.gov\/newsroom\/heres-what-businesses-need-to-know-about-the-enhanced-business-meal-deduction\">50% deductible again<\/a>, after the temporary 100% deduction expired in 2022.)<\/em><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3_Qualified_business_income\"><\/span><strong>3. Qualified business income<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Also referred to as QBI, the qualified business income deduction allows eligible business owners to deduct up to 20% of their qualified income, as well as 20% of qualified REIT dividends and income from certain publicly traded partnerships.<\/p>\n\n\n\n<p>This deduction is available to individuals who own sole proprietorships, partnerships, or S corporations, and in some cases, trusts or estates.<\/p>\n\n\n\n<p>To learn more about the stipulations and details of this deduction, visit the IRS page for <a href=\"https:\/\/www.irs.gov\/newsroom\/qualified-business-income-deduction\">qualified business income deduction<\/a>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"4_Freelance_and_independent_contractor_deductions\"><\/span><strong>4. Freelance and independent contractor deductions<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Expenses associated with working with freelancers and independent contractors are also tax deductible. For any independent contractor you pay more than $600 during the tax year, you\u2019ll file a <a href=\"https:\/\/akaunting.com\/blog\/what-is-a-1099-nec-form-used-for\">1099-NEC form<\/a>. You\u2019ll also need to be sure these individuals are not employed by you and that the services they provided were only for your business.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"5_Insurance\"><\/span><strong>5. Insurance<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In most cases, small business owners are eligible to deduct the cost of their <a href=\"https:\/\/turbotax.intuit.com\/tax-tips\/home-ownership\/deducting-health-insurance-premiums-if-youre-self-employed\/L6bRhLaVE\">medical insurance premiums<\/a>, as well as any contributions they make toward paying for their employees\u2019 coverage.&nbsp; You\u2019re also able to deduct any business insurance that covers commercial property, professional income, liabilities, and damage to business property related to disasters like fire and flooding.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"6_Home_office\"><\/span><strong>6. Home office<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Another important space to consider for tax deductions is your office. If you converted space in your home to create a home office, you\u2019re eligible to deduct <a href=\"https:\/\/www.irs.gov\/businesses\/small-businesses-self-employed\/simplified-option-for-home-office-deduction\">$5 for every square foot<\/a> (up to 300 square feet) used for the purpose of your small business. Offices that serve a dual purpose, like a guest room, bedroom, or dining room, are not eligible to receive this deduction.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"7_Office_supplies\"><\/span><strong>7. Office supplies<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>You should also consider office supplies for a tax deduction. If you purchased a computer, paid a website hosting fee, needed a subscription to a resource or service, or bought supplies like paper, pens, or printers to complete administrative tasks, you can deduct those costs as long as you can provide records and receipts.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"8_Utilities\"><\/span><strong>8. Utilities<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Utilities that are necessary for the operation of your business can be deducted from your taxes as well. This could include your water, landline or cellphone, internet, power, and heating bills. In the case of home offices, you\u2019re only able to write off the cost of what was truly needed to run your business\u2014not what was used personally for you or your family in the home.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"9_Education\"><\/span><strong>9. Education<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>As a business owner, you may want to enroll in a certification training course, take a class to expand your skills, or send an employee to seek out additional education through webinars, workshops, or subscriptions to professional publications. Any costs incurred through your own or an employee\u2019s relevant professional development can be tax deductible.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"10_Retirement\"><\/span><strong>10. Retirement<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>By investing money into an IRS-approved retirement plan, like a Solo 401(k), Keogh plan, Roth IRA, or Simple IRA, you reduce your annual taxable income. Contributions made to these accounts are limited, but they\u2019re also 100% tax deductible.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Get_ready_to_file_your_taxes_in_2025\"><\/span><strong>Get ready to file your taxes in 202<\/strong>5<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>As a small business owner, making sure you\u2019re advocating for yourself and taking full advantage of the different opportunities to save money when doing your taxes is imperative. Knowing exactly what your expenses are, where your business structure allows for a tax deduction, and how to optimize your annual write-offs are great ways to maximize your income and ensure funds are available when your business needs them most.<\/p>\n\n\n\n<p>Each business is eligible for different deductions based on its particular structure, function, and operations. Remember to carefully consider the unique features of your business to identify deductions you\u2019re able to claim, but that may not be included in this list. Ensure you\u2019re carefully reflecting on the aspects of your business that may not be represented in this list, and contact a tax expert for additional support if needed. For more information about small business tax deductions, read our <a href=\"https:\/\/www.northone.com\/blog\/taxes\/guide-to-small-business-tax-deductions\">full guide<\/a> on the subject.<\/p>\n\n\n\n<div class=\"wp-block-columns emailcapturecontainer has-background is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\" style=\"background-color:#edce81\">\n<div class=\"wp-block-column is-vertically-aligned-center is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:55%\"><\/div>\n\n\n\n<div class=\"wp-block-column is-vertically-aligned-center is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:45%\"><div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img decoding=\"async\" data-expand=\"1\" src=\"https:\/\/www.northone.com\/blog\/wp-content\/plugins\/media-ace\/includes\/lazy-load\/images\/blank.png\" data-src=\"https:\/\/www.northone.com\/blog\/wp-content\/uploads\/2021\/10\/N1-DeviceLockup.png\" alt=\"\" class=\"lazyload wp-image-3928\"\/><\/figure>\n<\/div><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Tax season can be a stressful time for many small business owners. When every dollar matters, you want to make sure your 2024 return (filed in 2025) is 100% accurate\u2014but&#8230;<\/p>\n","protected":false},"author":4,"featured_media":3615,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[155],"tags":[],"class_list":["post-3614","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-accounting"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Small Business Tax Deduction Checklist for 2025 - NorthOne<\/title>\n<meta name=\"description\" content=\"Read this small business tax deduction checklist to consider deductions to claim for your business including business travel and utilities.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.northone.com\/blog\/accounting\/small-business-tax-deduction-checklist\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Small Business Tax Deduction Checklist for 2025 - NorthOne\" \/>\n<meta property=\"og:description\" content=\"Read this small business tax deduction checklist to consider deductions to claim for your business including business travel and utilities.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.northone.com\/blog\/accounting\/small-business-tax-deduction-checklist\" \/>\n<meta property=\"og:site_name\" content=\"North One Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/northonebanking\/\" \/>\n<meta property=\"article:published_time\" content=\"2023-03-03T22:41:08+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-03-23T21:25:09+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.northone.com\/blog\/wp-content\/uploads\/2023\/03\/Full-Small-Business-Tax-Deduction-Checklist-for-2023.png\" \/>\n\t<meta property=\"og:image:width\" content=\"863\" \/>\n\t<meta property=\"og:image:height\" content=\"558\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Carter Grieve\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@NorthOneApp\" \/>\n<meta name=\"twitter:site\" content=\"@NorthOneApp\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Carter Grieve\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"7 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.northone.com\\\/blog\\\/accounting\\\/small-business-tax-deduction-checklist#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.northone.com\\\/blog\\\/accounting\\\/small-business-tax-deduction-checklist\"},\"author\":{\"name\":\"Carter Grieve\",\"@id\":\"https:\\\/\\\/www.northone.com\\\/blog\\\/#\\\/schema\\\/person\\\/1d9ccac27f234254fafe34ebbeca437a\"},\"headline\":\"Small Business Tax Deduction Checklist for 2025\",\"datePublished\":\"2023-03-03T22:41:08+00:00\",\"dateModified\":\"2025-03-23T21:25:09+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.northone.com\\\/blog\\\/accounting\\\/small-business-tax-deduction-checklist\"},\"wordCount\":1299,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/www.northone.com\\\/blog\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/www.northone.com\\\/blog\\\/accounting\\\/small-business-tax-deduction-checklist#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.northone.com\\\/blog\\\/wp-content\\\/uploads\\\/2023\\\/03\\\/Full-Small-Business-Tax-Deduction-Checklist-for-2023.png\",\"articleSection\":[\"Accounting\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.northone.com\\\/blog\\\/accounting\\\/small-business-tax-deduction-checklist#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.northone.com\\\/blog\\\/accounting\\\/small-business-tax-deduction-checklist\",\"url\":\"https:\\\/\\\/www.northone.com\\\/blog\\\/accounting\\\/small-business-tax-deduction-checklist\",\"name\":\"Small Business Tax Deduction Checklist for 2025 - 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