It is time to start worrying about your taxes. Small businesses often miss these 6 Tax saving tips. Forbes did an article about how an average of 93% of small business owners overpaid their taxes for years.
Know where all your receipts are
There are so many things that you can deduct from your taxes but if you don’t hold on to all your receipts then you won’t know. There are several apps out there they can help you log your purchases as personal vs business and then you don’t have to hold onto the paper copy.
Get help filing
If you can, pay someone to file for you. Many small businesses can’t afford that so they should be using platforms like TaxSlayer to try and make it as accurate as possible. I would recommend doing the paperwork on more than one program and see what they tell you. They might vary in accuracy year by year.
Pay for your retirement now
Small business owners can put up to 5500 into a traditional or Roth IRA, do the Roth. You are a self-employed worker so your taxable income can be reduced by saving for your retirement. With a traditional, the money isn’t taxed until you take it out but I prefer the Roth. To learn more read here on
Do you have a home office?
Do you do anything at home? Yes? Deduct it! This is a business-related expense. You have to figure out what portion of your home is dedicated to your business and figure out the cost associated with it but you should be deducting that!
Do you drive to do any business?
Deduct your car! Just like your home, you will have to calculate what percentage of your car usage is business related. This is a really simple thing to do. There are several apps out there that are designed for this specifically. If you are interested finding a good app for this, read last years post reviewing them.
Don’t sell your old equipment
This one might seem a little odd but if you want to get rid of something, typically because it is no longer giving you a return, do your research first. Find out if it would be better to just abandon it or to sell it. The difference between an ordinary loss or a capital loss can impact your taxes.
Ordinary losses are entirely deductible. You can find out how your equipment can be classified under Section 1231, make your decision after looking at that.