Maximize Your Tax Savings
A Quick Guide for Businesses and Contractors
Tax season is here, and for business owners and independent contractors, understanding deductions can make a huge difference in how much you owe—or how much you save. Whether you’re a freelancer, consultant, or entrepreneur, tracking qualified business expenses is key to lowering your taxable income and keeping more money in your pocket.
What Are Tax Deductions?
Tax deductions reduce the amount of income you pay taxes on by subtracting qualified expenses related to your business. For example, if you earned $60,000 and had $10,000 in deductions, you would only pay taxes on $50,000. That’s real savings!
Common Deductions You May Be Missing
Home Office Expenses – Rent, utilities, and internet costs if used exclusively for business.
Office Supplies and Equipment – Pens, paper, computers, and software.
Travel and Meals – Flights, lodging, and 50% of meals during business trips.
Professional Services – Payments to accountants, consultants, and attorneys.
Marketing and Advertising – Online ads, websites, and business cards.
Startup Costs – Up to $5,000 for setting up your business.
Business Gifts – Deductible up to $25 per recipient per year.
What About Non-Deductible Expenses?
Some expenses may feel like they should be deductible but aren’t. For example:
Clothing – Only uniforms or protective gear qualify.
Commuting Costs – Driving to and from work isn’t deductible.
Gym Memberships – Unless required for your job, these aren’t deductible
Pro Tip: Track Everything!
It’s better to over-document your expenses than miss out on savings. Even if you’re unsure whether something is deductible, keep receipts and records. Your accountant can help sort out what qualifies.
Ready to Save More This Tax Season?
Save our FREE Business & Contractor Tax Deduction Guide to get a detailed checklist of deductions and tips to stay organized. Don’t leave money on the table—take control of your taxes today!
Look no further—West Bridge Finance Solutions (WBFS) has you covered! Explore our tax services and see how we can help you simplify tax season and save more.
Download as a PDF: Tax Deduction Guide
