Tax season can be daunting when you don’t have the information you need to maximize your savings. Keeping track of all the tax credits and deductions you qualify for can be difficult, especially since the rules differ depending on whether you’re filing a personal or business tax return. In addition, most tax deductions and credits require detailed documentation to validate the claim. That’s why nearly 48% of U.S. business owners report using tax professionals for business tax guidance (TaxSlayer Pro, 2025).
When you work with a qualified tax professional who has the right information, the filing process becomes easier to manage. Hiring a professional bookkeeper year-round might also be essential, as it ensures your tax preparer has accurate records to help you file with the correct deductions.
ATLAS CPAs & Advisors understands the unique and varied complexities of every tax return – especially when it comes to small businesses. Read on to learn how tax deductions can benefit you and your business, and check out some of the top deductions you may be able to claim during the 2025 tax filing season.
Why Claim Tax Deductions?
When filing a tax return, you owe a percentage of tax based on your taxable income. The U.S. federal tax system uses seven tax brackets, each with a different tax rate. State income tax rates will vary. Taxable income is calculated by the money you take home (such as gross income, investments, business income), minus valid tax deductions.
If your qualifying deductions exceed the standard deduction, it may be beneficial to itemize rather than claim the standard deduction. The more legitimate deductions you can claim, the lower your taxable income will be.
To learn more about the 2025 US Federal income tax brackets and standard deduction amounts, you can visit IRS.gov.
Top Tax Deductions for Small Businesses
Now that you understand how deductions help lower taxable income, let’s review some of the most valuable deductions small businesses should consider for the 2025 tax filing season.
Advertising and Promotion
Did you hire a designer for digital media, pay for print or online advertisements, sponsor an event, or purchase print materials like business cards or brochures? These expenses are generally 100% deductible as long as they are ordinary and necessary business expenses. For example, if you spent $20,000 on advertising and promotion, that full amount is typically deductible and not treated as taxable income.
Note: Political advertising and lobbying expenses are not deductible.
Business Meals
Business meal expenses are generally 50% deductible when they are ordinary and necessary, not lavish or extravagant, involve a current or prospective business contact, and have a clear business purpose. Be sure to properly document: the meal price, date and location, and purpose of the meal.
Certain business meals may qualify as 100% deductible, such as:
—Meals provided at employee gatherings
—Food provided at open houses or events open to the general public.
Bank Fees
Fees associated with business bank accounts or credit cards (such as monthly service charges, merchant processing fees, or transfer fees and overdraft charges) are deductible business expenses. This is one of the reasons why it is important to separate your personal and business finances – separate accounts will help you claim business tax deductions with ease.
Business Use of Vehicle
You can deduct vehicle expenses with one of two methods: the Standard Mileage Rate or the Actual Expense Method. Remember that it’s critical to accurately track your mileage to use either method.
–Standard Mileage Rate: You must own or lease the vehicle and use it for business. If you previously claimed depreciation using the actual expense method, you may be restricted from using this method. For the 2025 tax year, you can deduct 70 cents per business mile driven, in addition to business-related parking fees and tolls.
–Actual Expense Method: This method allows you to deduct the business-use percentage of your actual vehicle expenses, based on mileage. This may include fuel, repairs and maintenance, insurance, lease payments, registration fees, depreciation, and vehicle loan interest.
Home Office Deduction
If you use a portion of your home exclusively and regularly for business, you may qualify for the home office deduction. To be eligible, your home office must:
—Be your principal place of business (where most of your “work” takes place).
—Be used regularly and exclusively for business purposes.
There are two ways to calculate this deduction:
–Simplified Method: Deduct $5 per square foot of home-office space, up to 300 square feet.
–Standard Method: Calculate the percentage of your home used for business and apply that percentage to your eligible home expenses, such as mortgage interest, utilities, insurance, and repairs.
Tax deductions may seem like a small benefit (financially), but they can have a significant impact on your taxable income. Without consistent bookkeeping and proper expense tracking, many deductions may be ineligible to claim. Consult with your trusted ATLAS tax professional to ensure you’re fully positioned to take advantage of every tax deduction available to your small business.