Top 10 Tax Deductions and Expenses For Small Businesses

1099 Tax Deductions For Small Employment Businesses

The IRS allows various deductions for small employment businesses when compared to the regular employees. The 1099 deductions are the little complex for the individuals who are filing the tax returns for the first time. In order to clear the doubt regarding the tax deductions and to know more about 1099, lets shed some light on 1099 tax deductions for small employment businesses.1099 Tax Deductions for Small Employment Businesses

Top 10 Tax Expenses for Self Employment Businesses

Expenses of car and mileage

Among the other tax deductions that are available, car expenses and mileage is one of the most important deductions. The taxpayer can write off the driving activities like going to meet the clients, or driving while working. The standard mileage rate for the deduction is 54 cents for every mile you drive for the business.

In order to track and deduct the mileage, there are two methods. One is the actual method and standard mileage rate. The standard mileage rate records the gas, maintenance, insurance and depreciation, which is easy to track and claim. When using the actual method to record the mileage, make sure to keep adequate records. Record the log date, the purpose of the business, miles, starting and ending odometer reading.

Home office expenses

When you are running the business from home, you may count the portion of the home expenses in the write-off. There are certain conditions to use this deduction:

  • The home which you are using for business must be the primary place of your business. If you use the home occasionally, then you cannot use this as a deduction.
  • The space in your home that you use within the home should be exclusively for work. You need to write off only a portion of your home space.

Office Supplies

When you are purchasing any supplies to conduct the business is deductible. If you are a cleaner, you may deduct the cleaning supplies that you have purchased for the business purpose. When you rented or leased an equipment for business purpose, then you can add that to the deduction as well.

Insurance premiums

When you paying for your own health insurance and your partner do not benefit from the employer-subsidized health insurance, then you may count those payments as a tax deduction on the income taxes.

Education Expenses 

Expecting to take an online course to improve the knowledge? When that added knowledge could improve the skills in your present business, you can add them to the tax deduction. Remember that, you cannot add the education expenses for the new line of work.

Cell phone

When using mobile for contacting your clients and use the same for own personal use, then you can add a portion of your mobile bill as a tax write off. But you need to make a careful estimate of the percent of usage for personal versus business. Deduct the percent of business call charges.


When you are traveling frequently for business, ensure to keep the records of the airfare, rental cars, hotel, cab, and any other expenses. The mentioned costs are deductible when you are traveling for a business purpose.


When you are regularly paying a parking fee, keep those receipts to count as a tax write off.


One of the tax deduction, which is often ignored is Postage. When you ship and mail for your business purpose, hence keep track of those expenses.

Fees, Subscriptions and Dues

When you are paying some amount for any trade organization, services or publication for the purpose of your business, you can deduct that amount. For instance, when you got a certification, which requires a maintenance fee, you can deduct that as well.

Apart from those discussed items, there are more 1099 deductions which can count. Hence before completing the write-off, understand the entire 1099 tax deduction according to your particular work or business. You can save a lot of money with these deductions and make those deductions, you need to keep the records of your entire expenses.