Kan Dail
If you haven’t been writing off all your business expenses because it seems like it’s too much trouble, it’s time to start doing that now. In 2025, the standard deductions will revert to their 2017 levels, which will be about a 50% reduction, and that means you can expect to pay thousands more in taxes each year. It’s time to start documenting and writing off those small expenses for your business.
Small expenses add up fast, and it’s worth keeping track because you can save a considerable amount of money each year. For example, if you’re a sole proprietor earning $60,000 per year, you can expect to pay around 30% for state and federal income tax. If you have $10,000 in deductible expenses for the year, that will reduce your tax obligation by around $3,000. If you have $20,000 in deductible expenses, you’ll save closer to $6,000.
You probably won’t have tens of thousands of dollars in deductible expenses for small items, but when you add up everything small, you’ll be surprised at just how much money you can save on your tax bill each year.
Here’s a list of some of the most common, yet small and forgotten accessories that you can write off as a business owner in the United States.
Your phone case
If you purchase a phone case for your smartphone, and you use that phone to conduct business, you can write it off on your taxes. Phone cases are deductible expenses and even though it may not seem like it will make much of a dent, it will contribute to a larger amount of deductible income when combined with other expenses.
Since you can write it off, you have even more reason to get that high-quality case you’ve been wanting, like the Unicorn Beetle PRO which has been proven to protect phones from all kinds of damage, including being dropped out of windows and tossed out of fast moving cars. To check out these cases, click here.
Your smartphone
Did you buy a new smartphone for your business? If so, you can write it off for that tax year. Whether you bought the new iPhone or the Samsung Galaxy S24, getting a new smartphone is a big investment. The device may be small, but the price tag is not. So don’t forget to write off this expense.
Office supplies, like pens and paper
This is pretty standard, but any paper, pens, paperclips, and other small office supplies you buy for your business are tax-deductible. Depending on how many supplies you buy, and how often, it might be worth adding up all those $1.99 purchases or any other small amount.
The easiest way to keep track of small expenses is to put it all into a spreadsheet that you manage daily so you never have to scramble to find receipts or purchase amounts. If you wait until later, you may not even recognize a purchase because of the way it’s described on your bank statement.
Peripherals, like mice and keyboards
Did you buy a backup keyboard or a replacement mouse? Maybe you bought a mouse to use when you go to work at a coffee shop. These items are tax-deductible. If you haven’t bought any, but you feel like you might need a backup, get it because you can write it off.
USB drives
USB drives are useful for a variety of reasons. They’re great for backing up your files, being an extra hard drive for your daily use, and you can use the thumb drives to send your clients data through the mail.
Whatever type of drive you’ve bought for your business or clients, those expenses can be written off on your taxes.
Your internet service
Although it’s not an accessory, the internet is something people often forget they can deduct. Any internet services you pay for and use to conduct business are eligible for tax deductions. This includes the internet at home and any mobile services you subscribe to that get used for business.
Unless an internet connection is used solely for business, you can only write off a percentage of the bill, but that’s still going to help reduce your taxable income. All the small things add up and the internet happens to be a significant bill.
Travel costs
Travel for business can be expensed. Each year, the amount may vary, but you can take a standard mileage deduction for using your vehicle for work, or you can account for all of your expenses and deduct that amount. With the latter option, you’ll have to keep track of all your loans, leases, oil changes, tune-ups, tire changes and rotations, repairs, registration costs, insurance, and depreciation.
Which one you use will depend on your situation. If the standard mileage deduction is far less than your actual expenses, then it would be better to deduct your expenses.
Your web hosting and domain-related expenses
If you run a website, you can write off all of your yearly hosting and domain name registration expenses. You can also write off the cost of a hosted e-commerce site if it’s on a platform like Shopify. Everything else related to your website is also fair game, including themes, skins, plugins, and customizations from developers.
Take all of your allowed deductions
It’s important to take all of your allowed deductions because you shouldn’t have to pay income tax on money that is spent on your business.
If you’ve noticed for the last several years that your expenses aren’t meeting or exceeding the standard deduction, that will probably change in 2025 when the Tax Cuts and Job Acts expire and the standard deductions revert to their 2017 levels.
This will be roughly half of what it is now, so you just might find yourself with enough expenses to claim. Get in the habit of documenting your expenses now so you don’t have to scramble at the last minute later.
Every qualifying dollar is worth saving.