Summary of What This Blog Covers
- Claim overlooked deductions like health insurance, home office, and business software.
- Save big with retirement contributions and properly documented business travel.
- Deduct business use of internet, phone, meals, and mileage with accurate tracking.
- Work with a proactive CPA to stay compliant and maximize every tax-saving opportunity.
Let’s be honest: tax season often feels like a high-stakes legal thriller. And if you’re a business owner, you’re probably the lead character. Juggling receipts, stressing over 1099s, and wondering if you missed something critical.
Here’s the real plot twist: you probably did. Because the IRS won’t knock on your door and say, “Hey, you forgot to deduct that conference trip or your internet bill.” That’s not how this game works. You miss it, you lose it. But that’s where strategy comes in.
At Insogna CPA, a top-rated CPA firm in Austin, Texas, we help business owners turn their taxes into a tool not a trap. We combine proactive planning with real-time insights to ensure you’re capturing every deduction, credit, and compliance opportunity available to you.
So if you’ve been typing “tax preparer near me” into Google or asking around for a “CPA in Austin” who doesn’t just push paper once a year, keep reading. This list of overlooked tax deductions is your ultimate defense against overpaying the IRS.
1. Self-Employed Health Insurance Deduction
Let’s start with one of the most missed and most powerful deductions available to self-employed individuals. If you pay your own health insurance premiums, you may be eligible to deduct 100% of those costs. That includes premiums for yourself, your spouse, and dependents.
Here’s the catch: this deduction is only available if you’re not eligible for a subsidized plan through an employer or spouse’s plan. It also applies only to months where you had self-employment income.
Where it goes: Directly on your Form 1040, reducing your adjusted gross income which also impacts your eligibility for other credits and deductions.
Many clients we onboard have never heard of this one. When they do, it changes the way they approach both their health plan choices and their tax strategy.
2. Continuing Education and Professional Development
Business evolves fast and the IRS actually encourages you to stay sharp. Expenses that improve your skills in your current business are typically deductible.
That means the course you took on managing remote teams, the conference you attended to build partnerships, and even the subscription to that business leadership publication? Deductible.
What’s included:
- Online classes (LinkedIn Learning, Coursera, etc.)
- Conferences and networking events
- Webinars and trade association memberships
- Business books and publications
What’s not included: Education that qualifies you for a new line of work. If you’re a photographer taking coding classes to become a developer, the IRS considers that personal investment not a business expense.
Work with a certified public accountant near you to make sure you’re classifying these expenses properly and keeping the necessary records.
3. The Home Office Deduction: Your Home, Your Tax Break
With more people running businesses from home than ever before, this deduction has become both more common and still, wildly misunderstood.
Here’s the truth: if you use part of your home exclusively and regularly for business, you may qualify for the home office deduction.
Two options to calculate:
- Simplified method: $5 per square foot, up to 300 square feet (maximum $1,500).
- Actual expense method: Based on the percentage of your home used for business.
Deductible costs include:
- Mortgage interest or rent
- Property taxes and insurance
- Utilities and internet
- Repairs and maintenance
If your home office takes up 10% of your total square footage, you may be able to deduct 10% of these expenses.
This is one of those deductions that triggers questions so don’t navigate it alone. A small business CPA in Austin can help you determine which method makes the most sense based on your records and revenue.
4. Business Travel Expenses
If you travel for business and document it well, you may be entitled to some serious deductions.
What’s deductible:
- Airfare and transportation
- Hotel accommodations
- 50% of meals during business travel
- Baggage fees, ride shares, parking
- Conference or event fees
The key is keeping detailed records. Document your itinerary, purpose of the trip, whom you met, and any receipts. This is not the time to estimate or round numbers. Digital bookkeeping tools like QuickBooks Self-Employed can help you keep track on the go.
Note: If you bring your family, only your portion is deductible unless your spouse or child is a legitimate employee with a business reason to be there.
Work with an Austin, TX accountant who understands business travel rules and can help you properly allocate and document these expenses.
5. Self-Employed Retirement Contributions
Here’s where strategy meets savings: contributing to your retirement plan not only builds your future wealth, it reduces your current-year tax burden.
Three powerful options:
- SEP IRA: Flexible and simple. Deduct up to 25% of net earnings (max $69,000 in 2025)
- Solo 401(k): For solo entrepreneurs or family businesses. You can contribute as both employee and employer, with total contributions up to $69,000 in 2025, or $76,500 if you’re age 50 or older.
- Traditional IRA: Contributions may be deductible depending on income and whether you or your spouse are covered by another retirement plan. The 2025 contribution limit is $7,000, or $8,000 if you’re 50 or older.
Your contribution reduces your adjusted gross income, and in many cases, also your self-employment tax.
A licensed CPA or enrolled agent can run the numbers to determine which plan makes the most sense based on your income, business structure, and retirement goals.
6. Business Meals: Delicious and Deductible
If you’re meeting with a client or conducting business over lunch, congratulations. That meal is 50% deductible.
To qualify:
- The meal must be with a business associate (client, contractor, employee)
- Business must be discussed before, during, or after the meal
- You must be present (no takeout for staff unless for a meeting)
The IRS allows 50% of the cost to be deducted, but the documentation is key. Log:
- Who you met with
- The business purpose
- Date and total amount
Where to record: Business meals go under “Meals and Entertainment” on your Schedule C or business tax return.
This is a great example of an expense that can be missed if you’re not actively tracking it, especially for 1099 workers or self-employed professionals who pay out of pocket and forget to log it later.
7. Software Subscriptions and Tools
These days, businesses run on subscriptions. And every one of those tools could be tax-deductible.
Examples include:
- Accounting software (QuickBooks, Xero)
- Project management tools (Trello, Monday.com)
- CRM platforms (Salesforce, HubSpot)
- Design programs (Canva, Adobe Creative Cloud)
- E-signature platforms
- Apps that generate W9 forms or help with 1099 tax filing
Every app, plug-in, and digital platform you use for your business should be tracked as a line-item. These costs may be small, but they add up fast and they’re all deductible when used exclusively for business.
8. Internet and Phone Bills
If you use your phone or internet for business—and who doesn’t these days?—you can deduct a portion of those bills.
Break it down like this:
- Business-only phone line: 100% deductible
- Cell phone: Deduct percentage of business use (i.e., 80% use = 80% deduction)
- Internet: Same rule applies
Many business owners underestimate this deduction or forget to calculate it properly. Let an Austin accounting firm help you determine your monthly deduction and how to record it cleanly.
9. Mileage and Vehicle Expenses
Driving to a client meeting? Picking up supplies? That mileage adds up and so does the potential deduction.
Choose your method:
- Standard Mileage Rate: 67 cents per mile in 2025 for business use.
- Actual Expense Method: Calculate gas, maintenance, insurance, lease payments, and depreciation based on the percentage of business use.
Pro tip: You must choose a method for the vehicle’s first year of business use and stick with it. So plan ahead.
We recommend mileage tracking apps like MileIQ or the QuickBooks Mileage Tracker to ensure your data is clean, audit-proof, and easy to use when you sit down with your certified CPA near you.
10. State and Local Taxes (SALT)
The SALT deduction allows business owners to deduct up to $10,000 in combined state income and property taxes on their federal tax return.
What’s included:
- State income tax
- Local franchise or business taxes
- Real estate taxes on business property
If you own a brick-and-mortar location or pay state income taxes, this deduction is especially important. However, due to the $10,000 cap, it’s critical to be strategic about how and when to leverage it. That’s where your Austin tax advisor earns their keep.
Bonus: Don’t Forget FBAR Filing
Have over $10,000 in foreign accounts? You’re required to file an FBAR (Foreign Bank Account Report) annually. This is an informational return, but failing to file can result in hefty penalties even if the accounts didn’t earn income.
Many entrepreneurs, especially digital nomads or eCommerce sellers with international accounts, forget this. A certified public accountant or enrolled agent can make sure you’re FBAR-compliant and covered for global tax issues.
Closing Argument: It’s Time to Stop Overpaying
We’ve just walked through 10+ deductions that can save you thousands. And here’s the truth: this list barely scratches the surface.
When you work with Insogna CPA, you’re not just getting another CPA in Austin. You’re getting a proactive partner who helps you:
- Maximize every deduction legally and ethically
- Stay compliant with state, local, and federal requirements
- Interpret forms like the 1099 NEC, 1099K, W9 tax form, and more
- Create a year-round tax strategy that builds wealth and peace of mind
Schedule your consultation with Insogna CPA today and discover how your taxes can become a tool for financial growth, not just a necessary chore.