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Every business owner wants to minimize their tax liability, but even the most diligent among us can miss out on valuable deductions. While you probably have the big deductions like employee compensation and rent under control, it’s easy to overlook smaller expenses that could save you money. These commonly missed tax deductions might seem minor, but they can add up to significant savings. Let’s dive into five of the top overlooked tax deductions and how you can make sure you’re not leaving money on the table.
1. Software, Subscriptions, and Professional Dues
Think about the recurring payments your business makes every month. Your accounting software, project management platforms, cloud storage, and industry-specific apps are all necessary for your operations. The good news is that these subscription costs are fully deductible business expenses.
The same goes for any dues or fees you pay to professional organizations, trade associations, or for business-related publications. These expenses support your professional growth and help you stay current in your field, making them a valid part of your business costs. Keeping a running list of these recurring charges can reveal a sizable deduction you might have been missing.
2. Business-Related Travel and Vehicle Expenses
Business travel expenses include more than the big trips, like flying to a conference. They also include driving to meet with a client, visiting a project site, or running errands for supplies. While you can’t deduct your daily commute from home to your main office, you can deduct the costs of other driving you do for business.
There are two ways to claim this deduction: the standard mileage rate or the actual expense method. The standard mileage rate offers a simpler approach, letting you deduct a set amount for every mile you drive for business. The actual expense method involves tracking all your vehicle-related costs—like gas, oil changes, insurance, and repairs—and then calculating the portion used for business. For either method, keeping clear records is fundamental.
3. Depreciation on Business Assets
Due to new tax law changes in 2025, most businesses can now deduct the full price of major assets—like computers, office furniture, or equipment—in the year they’re purchased. The One Big Beautiful Bill Act (OBBBA) made 100% bonus depreciation permanent, so you can write off the entire cost of most new and used qualifying assets the first year you put them in service.
Standard depreciation is still an option if you choose not to take these immediate write-offs or for assets that don’t qualify. For many purchases, however, being able to expense the full amount upfront can mean more cash flow for your business. If you skip depreciation, you’re not fully accounting for the true cost of your business assets.
4. Employee Benefits Contributions
Offering benefits like a retirement plan helps you attract and keep great employees, and it also provides you with a valuable tax deduction. Your contributions to employee benefit programs, including 401(k) plans, health insurance premiums, and Health Savings Accounts (HSAs), are generally deductible as a business expense.
This creates a positive outcome for everyone involved. You invest in your team’s security and future while also lowering your business’s taxable income. If you offer these benefits, a careful review of your contributions should be on your tax deductions checklist.
5. Banking Fees and Interest
This is one of the most frequently missed deductions. Many business owners see bank fees as a simple cost of doing business and don’t realize they can be deducted. Monthly service charges, transfer fees, and even the cost of ordering new checks are all deductible expenses.
On top of that, if you have a business loan or use a credit card for business purchases, the interest you pay is also deductible. Take some time to review your bank and credit card statements at the end of the year. You might be surprised by how much you’ve spent on these small but completely legitimate business costs.
Partner with SME CPAs to Maximize Your Deductions
Every dollar saved on taxes is a dollar you can reinvest in your business. These five categories are just a handful of the commonly missed tax deductions that could be affecting your bottom line.
At SME CPAs, we’re here to make sure you’re not leaving money on the table. Our team digs deep to create a tax plan that works for you and helps you keep more of what you earn.
Don’t let missed deductions eat into your profits. Contact SME CPAs today to schedule a review and start saving this tax year.