Last year, I spent a decent amount on upgrading my workspace and even took an online course to level up my skills. But when tax season came around, I had no idea if those things were deductible. I’m sure I missed out on some legit savings. Curious, what tax deductions do most entrepreneurs like me tend to overlook?
Answer by: abdullah-al-naim
1 month ago
You’re definitely not the only one who feels that post-filing regret. Many entrepreneurs miss out on valuable deductions just because they don’t look like “obvious” business expenses. Here are some of the most commonly overlooked ones:
Home Office Deduction:
If you use a part of your home exclusively for work, even a small corner, you may be eligible to deduct a portion of your rent, utilities, and internet. Yes, even if you live in a studio apartment.
Business-Related Education Expenses:
Took an online course or attended a webinar to upgrade your skills? If it’s relevant to your current business, you can likely deduct it.
Startup Costs (First Year Only):
You can deduct up to $5,000 in startup expenses like legal fees, website creation, or branding. But only in your first year. So don’t forget!
Software & Subscriptions:
Your Canva Pro, Zoom, or QuickBooks subscriptions? Yep, totally deductible.
Health Insurance (for Self-Employed):
If you’re paying your own health insurance, that could be deductible too, especially if you’re a single-member LLC or sole proprietor.
Mileage & Travel:
Drove to a client meeting or flew out for a trade show? Log those miles and save those receipts.
Phone & Internet (Partially):
Even if it’s not 100% business use, a portion of your phone and internet bills can still qualify.
Pro Tip:
Many of these deductions require proper documentation; keep receipts, digital logs, and separate accounts if possible. If you’re a non-resident running a U.S. company, things get more nuanced. That’s where a professional touch helps.
