Small business owners dread filing their tax returns when the amount of money owed to the IRS is exorbitant. However, did you know there are several deductions for small business owners that can save on your tax burden? The following are just a few deductions that you may able to use when tax planning.

5 Small Business Tax Deductions to Help You Save Money

1. Supplies

Supplies help your business provide service. No matter what types of supplies your business requires to operate, you can write them off on your tax return. You can also deduct postage or shipping costs for supplies that need to be shipped to or from your business.

2. Business Meals

Business-related meals (i.e. those where business matters are discussed) can be deducted up to 50%. You need to provide how much the meal cost, the date, location, and the relationship of the business associate who joined you (such as a new client).

3. Company Vehicles

You have two options when deducting for work vehicles. You can use the IRS’s formula on your tax return, which was 55 cents per mile traveled. You can also track costs for usages, such as fuel and maintenance, and provide records to the IRS.

4. Travel

There is a wide range of travel costs that can be deducted. Costs for airfare, parking fees, tolls, lodging, taxis, ride shares, and shipping are all allowed to be written off. To be considered eligible, travel must take you away from the city or area your business is based in and must last longer a normal workday.

5. Wages

Wages are another area that can help save on your business tax return. This includes income provided to employees, as well as any benefits, bonuses, or commissions they receive. However, be aware that sole proprietors and others are not considered employees, making their income ineligible for deduction.

Tudor Wilson & Associates CPAs, LLC has provided small business owners in Honolulu with tax advice for more than 19 years. If you have questions about your tax return, their certified accountants can review it to make sure you're getting the most out of possible deductions. View their many valuable services, such as financial and estate planning, forensic accounting, and QuickBooks® training, online. Call (808) 592-2000 to schedule a consultation and start your tax planning today.