What’s Actually Deductible on My Taxes?

Small business tax deductions for Women Small Business Owners, Therapists, Creatives, and service-based solopreneurs.

If you’ve ever stared at a receipt and thought, “Can I write this off? Is this lunch deductible?” you’re not the only one. The IRS rules are dense, and online advice is often confusing or flat-out contradictory.

Kim is the founder of BreezePoint, a remote bookkeeping service for Small Business Owners and mental health professionals. This article is part of a series answering the most common questions about bookkeeping, cash flow, and taxes for small businesses.

BreezePoint is an online done-for-you bookkeeping service for Women Business owners and other service-based solopreneurs across the U.S..

▶️ Watch the video on YouTube »

The Concept

• What a tax deduction really is
• The “ordinary and necessary” rule that keeps you grounded
• Common categories where legitimate business deductions live
• How to think about gray areas like clothing, meals, travel, and home office
• A simple tracking system so you don’t have to be the tax expert

What a Tax Deduction Really Is

First things first: what is a tax deduction?

A tax deduction is a business expense that reduces your taxable income. If you make $100,000 in sales and have $20,000 in deductible expenses, your taxable income is $80,000. The expenses don’t give you free money, but they do reduce the amount of income the IRS can tax.

Here’s the rule that matters most:

To be deductible, an expense must be ordinary and necessary for your business.

• Ordinary means it’s common and accepted in your industry.
• Necessary means it’s helpful or appropriate for running your business.

If you’re a photographer, a new camera lens is easy to justify. If you’re a Therapist, therapy software or a laptop for telehealth sessions is clearly part of doing business. But if you’re a landscaper, a personal boat probably isn’t going to pass the test.

Use this as your daily filter:

Anytime you buy something, ask: can I truthfully make the case that this purchase is both ordinary and necessary for my business?

If the answer is yes, you’re closer to a valid deduction. If you’d be embarrassed trying to explain it to your tax pro or the IRS, that’s a red flag.

If you want the official language, you can skim the IRS page on deducting business expenses, but you don’t need to memorize it. Start with “ordinary and necessary,” and stay honest.

Common Business Deduction Categories

Most valid business deductions fall into a few broad buckets.

Supplies & Equipment
Things you buy to deliver your service:

• Laptops, monitors, cameras, tools
• Office supplies and basic equipment
• Software subscriptions

Marketing & Advertising
Expenses that help people find and understand your business:

• Websites and hosting
• SEO services
• Printed materials, ads, podcast or YouTube costs

Professional Services
People you pay to help your business run:

• Bookkeepers and accountants
• Attorneys
• Cleaners for your office or workspace

Continuing Education
Costs that improve your current business skills:

• Courses and workshops
• Industry conferences
• Relevant memberships

These categories cover a big chunk of what Small Business Owners are already paying for. Clean bookkeeping simply helps you see those expenses clearly and claim what you’re entitled to.
(That’s exactly what we do ; )

Gray Areas That Trip People Up

Now, let’s talk about areas that feel confusing. They’re not as gray to the IRS as they feel to you.

Clothing

This one surprises people.

• Regular clothes (even “work clothes”) are usually not deductible.
• What can be deductible: uniforms, logo wear, or true protective gear that you wouldn’t wear outside of work.

The logic is simple:

If you could reasonably wear it off the clock, the IRS views it as personal, not a business deduction.

So a branded scrub top or logo hoodie might qualify. A nice blazer you also wear out to dinner? Personal.

Meals

Meals can be deductible, but only when there’s a real business purpose. Common scenarios:

• Meals with a client or business contact where you’re discussing work
• Meals while traveling for business (away from your home base overnight)
• Meals for employees or contractors during work-related meetings or long days

With meals, documenting the purpose matters. On each receipt, jot down:

• Who you met with
• What you talked about
• The business purpose

That quick note is your proof that it was truthfully a business meal, not just a social outing.

Travel

Business travel can include:

• Flights
• Hotels or other lodging
• Ground transportation to client sites or conferences
• Event or conference registration fees

But if family tags along, their portion of the costs is usually not deductible. And the trip needs to be clearly for business, not a vacation with a little work sprinkled in.

Ask yourself:

If someone looked at my calendar and receipts, would it be obvious this trip was primarily for business?

Home Office

The home office deduction can be powerful when used correctly.

You generally need a space that is:

• Used regularly and exclusively for business

This might be:

• A dedicated office room
• A defined corner with your desk and work setup

It is not:

• A guest room with a bed that doubles as your office
• A dining table you use for both family meals and work

You don’t have to claim the entire room, but you do need to be honest about the square footage that’s only used for business. Your tax professional can help with the specifics, but the principle is the same: keep it truthful, consistent, and well documented.

Keep Your System Simple (You’re Not the Tax Expert)

You don’t need to be the tax expert — that’s what your accountant or bookkeeper is for. What you need is a simple system so your deductions are tracked and ready.

• Use a separate business bank account for income and expenses
• Save your receipts, digitally or physically, in one organized place
• Categorize expenses monthly so you’re not trying to rebuild an entire year at tax time
• Flag anything you’re unsure about and ask your tax professional later

Good bookkeeping is what turns “I think this is deductible” into “I can prove this is deductible.”

If all of this feels like too much, that’s exactly the work we take off clients’ plates with our done-for-you bookkeeping.

Key Takeaways for SMB Owners

• A tax deduction is a business expense that reduces your taxable income
• To be deductible, an expense must be ordinary and necessary in your specific line of work
• Common deduction categories include supplies, equipment, marketing, professional services, and continuing education
• Gray areas like clothing, meals, travel, and home office get clearer when you focus on truthful business use and documentation
• A simple system plus professional support helps you keep more of what you earn and stay compliant

Frequently Asked Questions about Business Tax Deductions

How do I know if something is really deductible?
Start with the ordinary-and-necessary test. If it’s common in your industry and clearly helpful for running your business — and you can explain it honestly — you’re closer to a valid deduction.

Do I need receipts for every deduction?
You should keep records for all business expenses, especially for areas like meals, travel, and home office. Receipts plus brief notes about the business purpose make life much easier if questions ever come up. Our Bookkeeping FAQs explain how we help clients handle this.

What if I’m still not sure?
If you’re unsure, track the expense, mark it as a question, and bring it to your tax professional. It’s better to ask than to guess. Over time, you’ll build a clearer sense of what fits your specific business.

Watch the Video

Watch “What’s Actually Deductible On My Taxes?” on YouTube »

About BreezePoint

BreezePoint provides done-for-you small business bookkeeping for Therapists, Counselors, Mental Health Care Providers, and service-based solopreneurs—clean books, clear reports, zero jargon.

If you’re ready to stop guessing about deductions and feel confident at tax time, contact Kim about done-for-you bookkeeping support.

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