7 Common Small Business Tax Questions

📌 Bottom Line Up Front:

• Knowing which expenses are deductible can save your business real money.

• The tax forms you need depend on your business structure—miss the right form and you could face penalties.

• If you had a tough year financially, tax rules on business losses might actually help you bounce back.

Tax season can feel overwhelming—especially when you're juggling client work, managing operations, and trying to stay compliant with changing tax laws.

Whether you’re a brand-new entrepreneur in Georgia or a seasoned small business owner, these seven commonly asked tax questions can help you stay one step ahead this season.

1. What documents do I need to file taxes for my small business?

To file accurately, you’ll need organized financial records. That includes:

• All sources of business income

• Business expenses

• Receipts and invoices

• Mileage logs (if using a vehicle)

• Asset purchases

• Loan or debt documentation

The IRS expects accuracy. Using accounting software or working with a bookkeeper (or me!) can make this process much less stressful.

2. What expenses can I deduct?

The IRS says a deductible expense must be “ordinary and necessary” for your business. Common examples include:

• Advertising and social media marketing

• Office supplies and business software

• Business-related meals (50% deductible)

• Internet and phone service

• Rent (including a home office portion)

• Travel and business-related mileage

• Professional fees (bookkeeping, legal, tax prep)

Even if you’re unsure, keep the receipts—we can review them together at tax time.

3. Are business meals still 100% deductible?

Not anymore. The temporary 100% deduction ended after 2022. In 2025, business meals are generally 50% deductible.

To qualify:

• The meal must involve a client, employee, or business associate.

• You (or a business rep) must be present.

• The meal can’t be “lavish or extravagant.”

Meals during travel also qualify, but your solo Chick-fil-A stop between meetings probably doesn’t.

4. Can I write off my home office?

If you use a dedicated space in your home exclusively for business, you may qualify for the home office deduction.

This space must be:

• Your principal place of business, or

• Regularly used to meet clients or store inventory

You can choose between a simplified method (based on square footage) or a detailed method (based on actual expenses). I can help you decide what works best for your situation.

5. Which tax forms do I need based on my business type?

Here’s a quick breakdown:

If you have employees, you’ll also need:

• Form 941 (quarterly payroll taxes)

• Form 940 (annual unemployment)

• W-2s for employees

• 1099s for contractors paid over $600

Need help filing the right forms? That’s where I come in.

6. Do I have to make quarterly estimated payments?

If you expect to owe more than $1,000 in taxes, you’re required to pay estimated taxes each quarter.

Here are the 2025 estimated tax due dates:

• Q1: April 15

• Q2: June 16

• Q3: September 15

• Q4: January 15 (2026)

Missing these deadlines can lead to costly penalties—especially for freelancers and service-based businesses like many here in Georgia.

7. What if my business lost money this year?

If your business expenses exceeded your income, you might have a Net Operating Loss (NOL).

NOLs can:

• Be carried forward to offset future income

• Reduce your tax bill in more profitable years

• Sometimes offset other personal income

While you can no longer “carry back” losses to previous years (a rule that expired in 2023), this can still be a valuable tool if you had a down year.

Need help with your taxes this season?

✔️ Ready to get started?

Let’s review your documents, organize your deductions, and make sure you're not leaving money on the table.

📞 Call or text me today to schedule your free consultation🌐 Connect with us!

Jonesboro, GA – serving clients across all states

Next Steps:

• Track business meals, travel, and receipts in a dedicated folder or app

• Mark your calendar for quarterly tax payments

• Separate personal and business finances to stay audit-proof

• Reach out now—don’t wait until April

  
  

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