Small Business Tax Write-Offs: Tips to Reduce Your Tax Bill

Let’s face it—every dollar we earn should work for us, not get lost to unnecessary taxes. But as small business owners, gig workers, and self-employed professionals, we often miss out on legitimate tax savings simply because we don’t know what qualifies as a deduction. The truth is, the tax code is full of opportunities to reduce our liability—if we know where to look.

We’re not talking about loopholes or shady tricks. We’re talking about real, IRS-approved deductions—also known as ordinary and necessary business expenses—that can dramatically lower what we owe or even increase our refund.

Know What You Can Write Off

If we spend money to run, grow, or maintain our business, there's a good chance it's deductible. This includes everything from office supplies, advertising, legal fees, and professional services to mileage, internet use, and business meals. As long as it’s considered ordinary and necessary in our industry, the IRS typically allows us to write it off.

For instance, if we use part of our home regularly and exclusively for business, we can claim the home office deduction—either through actual expense tracking or the simplified method, which offers $5 per square foot up to 300 square feet.

Don’t Forget Major Deductions Like QBI and Self-Employment Tax

Many of us qualify for the Qualified Business Income (QBI) deduction, which can cut up to 20% of our pass-through income right off the top. This deduction is huge—but it’s often overlooked or misunderstood. And if we’re self-employed, we also get to deduct half of our self-employment tax, which helps soften the blow of paying both the employer and employee sides of Social Security and Medicare.

Gig Workers and Freelancers—You’re in This Too

Gig workers often miss out on deductions simply because they don’t view themselves as business owners. But driving for Uber, selling on Etsy, freelancing, or consulting all count as self-employment in the eyes of the IRS. That means you qualify for many of the same self-employed tax deductions—including mileage, cell phone use, supplies, and even a portion of your health insurance premiums if you pay them out of pocket.

Depreciation Can Save Big on Equipment

If we buy computers, machinery, or other big-ticket items for our business, we might qualify for Section 179 depreciation, allowing us to deduct the full cost upfront—up to $1.22 million in 2024. There's also bonus depreciation, which lets us write off 60% of qualifying equipment purchases in the first year.

The Bottom Line

At the end of the day, tax season isn’t just about filing—it’s about strategy. The more we understand what we can legally deduct, the more control we have over our financial future. Small business tax deductions and write-offs aren’t just for accountants to worry about—they’re tools we can use to build stronger, more profitable businesses.

Let’s stop overpaying and start maximizing what we’ve earned. If you're ready to make your taxes work for you instead of against you, now's the time to get organized—and get the guidance you deserve.

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