10 Tax Deductions Most Small Business Owners Miss
Every tax season I find clients who overpaid the IRS by $3K–$10K the year before. These are the ten deductions they almost always miss.
1. Home office (the right way)
You can claim a percentage of rent, utilities, and internet based on the square footage you use exclusively for business. The simplified method is $5/sq ft up to 300 sq ft.
2. Vehicle mileage
In 2026 the IRS mileage rate is $0.67 per business mile. Track every trip — client meetings, supply runs, bank visits — with an app. Most business owners leave $2K–$4K on the table here.
3. Health insurance premiums
Self-employed? 100% of your health premiums are deductible above the line — you don't even have to itemize.
4. Retirement contributions
A SEP-IRA or Solo 401(k) lets you shelter $69K in 2026. This is the single biggest tax lever most business owners never pull.
5. Cell phone and internet
The business-use percentage of both is fully deductible.
6. Continuing education
Courses, certifications, and books that maintain or improve your skills are deductible.
7. Business meals
50% of client and travel meals are deductible with proper documentation.
8. Bank and payment processor fees
Every Stripe, Square, and PayPal fee is a deduction. They add up fast.
9. Software and subscriptions
QuickBooks, Zoom, Adobe, hosting — 100% deductible.
10. The Section 199A QBI deduction
Most pass-through business owners qualify for a 20% deduction on qualified business income. It's automatic if you file correctly.