Business Resources Financial Resources Legal Resources

5 Tax Deductions Entrepreneurs Need To Know

As entrepreneurs, we work hard to build our empire.

I am a big believer that knowledge is power, with that said, you can’t be an expert in everything.

Strategizing for paying your taxes should not be an afterthought in your business.

Here are some tax deductions entrepreneurs and bloggers will want to remember.

Tax Deductions Entrepreneurs

The more you know, the more you'll save and the more you'll make! Click To Tweet

1. Education And Workshops

Most of us know we can deduct some educational expenses, many of us are solopreneurs which means we wear many hats: Marketing Manager, Social Media Manager, Web Designer, etc.

If you’re taking a class in order to run your business, guess what. It’s a tax deduction!

Examples of great ONLINE COURSES to take taught by 6-figure bloggers;

Another area of education that goes unnoticed is, during the startup phase. If you take a course on business development this will also count as a deduction.

Any course whether online or in a classroom setting, workshop or training that you took prior to your business making money can be written off.

Let’s be real, business development is a very important step in the startup phase of your business, but it can also be very expensive.

Remember you wouldn’t be taking those course if it wasn’t for your business.

So be sure to track these expenses and talk to your tax professional regarding deducting these costs.

2. Local Transportation

I find that this one goes untapped for many business owners. Most will deduct out of area travel, like, airfare, hotel/lodging, car rental when out of town. This type of transportation is obvious.

However, people often forget to deduct local transportation costs. For example, if you’re someone that takes Lyft, Uber, or another sort of public transportation to get to business meetings, you can deduct those costs!

NOTE: If you’re new to Uber, use promo code “elainer441ue” to get your first ride for free! 🙂

3. Track Your Mileage

Most business owners know that this a deduction, but you’ll be surprised how many people don’t have a system for keeping track of how many miles are driven for their business. It’s definitely worth our time and effort.

However, they all add up add up. Don’t forget parking and tolls as well!

If you own a work from home business, you can claim even more miles because everywhere you drive will be business mileage. If you drive a lot for your business, you don’t want to miss this one.

There are many apps out there, make sure to download one today so you stop throwing money away.

MileIQ

A popular mileage tracker is the MileIQ app.

Here is a link to get 20% off your annual MileIQ subscription

mileIQ mileage tracker

QuickBooks

QuickBooks, which is an accounting software, comes with a mile tracker included and would be worth checking out.

mileage tracker quickbooks

Strides

This isn’t a mileage tracker but Strides is a great productivity app which will help you in business when you’re setting goals.

Strides mileage tracker

4. Software Subscriptions

Speaking of apps, let’s talk about online services, you use them to run your business every day and honestly, we couldn’t live without them!

It’s easy to remember the monthly subscriptions, but don’t forget the annual subscriptions as well.

For example;

5. Tax Deadline

Okay, this one is not a deduction… I’ll admit.

However, this is still an important part of your tax strategy and will reduce the chance of having to pay a penalty – or even worse, missing a deadline to claim a deduction that could reduce your tax liability.

The first thing you should do is fill out your calendar with all the tax deadlines that apply to you. By sticking to these deadlines, you won’t need to pay penalties when you file your tax return.

Here are the important tax dates to remember as a profitable small business owner, depending on the type of business you run:

  • Partnerships & S-Corporations: March 15
  • C-Corporations and Individuals: April 17
  • Exempt Organizations: May 15

Additionally, it would be wise to know your quarterly filing dates, as many companies are advised to pay taxes quarterly instead of one-time annually.

  • First Quarter: April 18
  • Second Quarter: June 15
  • Third Quarter: September 15
  • Fourth Quarter: December 15

These are just five of many, many deductions and strategy tips.

Remember, if it helped you grow your business, then it may be a deductible.

Even with all the information at your fingertips, it can still be overwhelming to get all your ducks in a row for tax time. And you still have to run your business… that doesn’t stop.

Make sure to invest time in learning about your taxes or invest in a professional.

Pin this list of 34 Tax Deductions Entrepreneurs + Bloggers Need To Know.

34 Tax Deductions Bloggers Need To Know on ladybossblogger.com

Tax Deductions Entrepreneurs Need To Know ladyBossBlogger.com

 

Keisha Edwards is the founder of KLEW Financial. She helps her clients by creating tax planning strategies tailored to their business needs, allowing them to focus on building and growing their business on a solid financial foundation.

1
Leave a Reply

Leave a Reply

  Subscribe  
Notify of
Hitendra Singh Rathore
Guest
Hitendra Singh Rathore

Really informative article. I loved reading it. Keep it up.