April 15 is seen as a scary day for many business owners. Tax season often marks a time of year when cash flow runs dry in an attempt to settle up with the IRS, and if you aren’t smart about how you file your taxes, you’ll likely put yourself in a bind. To make sure you’re taking advantage of your situation, here are 10 tax deductibles that you might be leaving off your return.
- Interest on Business Purchases
If you’re buying equipment and supplies for your company on a credit card, any subsequent interest payments can be deducted. This is especially important if you’ve made any large purchases using credit.
- Carryover Deductions
In some cases you might not have been able to write off a certain expense from the previous year. Keep an eye out for any business expenses or other tax deductibles that you weren’t able to make good on before.
- Health Insurance
If you’re self-employed or a business owner, you can deduct the premiums you pay for you and your dependents’ health insurance.
- Home Office
Anyone working from home is entitled to a home office deduction, and that can make a huge different on your return. Just be sure you’re specific about the space you use for work and how much you use it.
- Preliminary Business Payments
Don’t forget about all the money you spent before you got your business off the ground. Those expenses definitely add up and can all be written off.
- Previous Tax Fees
Make sure you include the fees you paid to have the previous year’s tax return prepared, as that’s another sizeable deduction.
- Business Banking Fees
Business checking accounts and credit cards often come with annual fees and certain penalties that you can’t avoid. Those can be fully deducted each year.
- Self-Employment
When you’re self-employed, you have access to certain tax deductibles that regular employees might not. Research your specific situation to find out what you might be missing.
- Business Debts
If you lost money from a certain transaction in which you weren’t properly compensated for your work, that money can be deducted.
- Business Supplies
If you use it for work and it cost money, you can almost always write it off.
By knowing about all the tax deductibles that could apply to your situation, you stand a better chance of getting a tax refund. Study up on the different deductions so that you can make the most of your return.