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Digital Tax “Write-Offs” For Small Businesses

What are tax write-offs?

First of all, A tax write-off is an expense that can be deducted from your taxable income. This lowers the amount of taxes you owe, resulting in a tax break. There are many different types of expenses that can be considered tax write-offs, and the eligibility depends on the country or region you live in. For example, in the United States, some common tax write-offs include IRA contributions, charitable donations, and medical expenses.

To claim a write-off, you will typically need to have receipts or other documentation to prove the expense. Keep in mind that not all expenses can be written off, so it’s important to do your research before claiming any deductions.

Overall, tax write-offs can save you a significant amount of money each year, so it’s worth taking the time to learn more about them. Let us help!

How to claim a digital tax write-off – a 5-step guide

There are a number of tax write-offs that you can take advantage of – even if you’re not a traditional 9-to-5 worker.
To make it easy for you, I created this 5-step guide for you. Enjoy!

1. Gather your receipts.

To claim the digital tax write-off, you’ll need to have all your digital purchase receipts in one
place. This includes everything from e-books and digital courses to online subscriptions and
software licenses.

2. Calculate total expenses.

Once you have all of your receipts, add up the total amount that you’ve spent on digital
products and services over the course of the year.

3. Enter your expenses on Form 1040.

On your federal income tax return, enter your total expenses from Step 2 on Line 24 (Other
Miscellaneous Deductions).

4. Claim the standard deduction or itemize your deductions.

You can either claim the standard deduction or itemize your deductions on your tax return. If
you choose to itemize your deductions; you’ll need to include your total expenses from Step
2 on Schedule A (Itemized Deductions).

5. File your return and await your refund!

Be sure to file your tax return by the April deadline to claim your digital tax write-off. Once
you’ve filed, simply wait for your refund to arrive – it’s as easy as that!

The most common write-offs for businesses

Regarding business expenses, a few write-offs are more common than others. However, I
took the time to find them, so you don’t have to. Let’s dig in!

1. Education and training expenses.

If you or your employees need to update your skills for the job, you can write off the cost of
tuition, textbooks, and other associated fees.

2. Home office expenses.

If you have a dedicated space in your home that is used exclusively for work, you can write
off a portion of your mortgage or rent, as well as utility bills and other necessary expenses.

3. Vehicle expenses.

If you use your personal vehicle for business purposes, you can write off a portion of the
gas, oil, and maintenance costs. You can also write off the depreciation of a business-only
vehicle.

4. Travel expenses.

You can write off your airfare, hotel bills, and meals if you travel for business purposes. You
can also write off mileage if you use your personal vehicle.

5. Business insurance premiums.

Insurance is a necessary expense for any business, and the cost of premiums can be written
off on your taxes.

6. Advertising and marketing expenses.

The cost of advertising and marketing your business is tax deductible. This includes
everything from online ads to print materials like flyers and business cards. Especially stuff
like the Website, Logo, Branding, and SEO.

7. Interest on business loans.

The interest paid on business loans is tax deductible. This includes both loans for start-up
costs and loans for ongoing operations.

8. Rent or lease payments.

If you rent office space or lease equipment, those payments are tax deductible as well.

Summary

So, here you go. A complete list of what you need to consider when it comes to tax write-offs
and saving money.
An easy rule to follow is that you can write-off the stuff you can show positively affects your
business. So the recommendation from us is, of course, to use the tax season to invest in
your:
Website
● SEO
Logo
Branding
Marketing
Since it’s your face and 24/7 salesperson that helps potential customers decide that you are
the right company for them.
Last but not least, if this has been on your agenda for a while and you’ve been looking for a
sign to get started. This is your sign

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