Business Tax Planning

5 Overlooked Tax Deductions That Could Save You Thousands for 2025

by
Wes Kirtz
on
10/24/2025
5 Overlooked Tax Deductions That Could Save You Thousands for 2025

Every year, millions of taxpayers overpay the IRS—often without even realizing it. Why? Because they’re missing deductions they’re legally entitled to claim.

It’s easy to assume that tax software or a quick DIY filing will catch everything, but the truth is that most programs only fill in what you tell them. If you don’t know a deduction exists, you’ll never claim it—and that means leaving money on the table.

As we head into the 2025 tax season, here are five of the most commonly overlooked deductions that could save you serious money this year.

1. Home Office Expenses

If you use part of your home exclusively for business, you may be eligible for the home office deduction—even if you’re self-employed or run a side hustle.

This deduction can include:

  • A percentage of rent or mortgage interest
  • Utilities like electricity and internet
  • Office supplies and furniture

Pro tip: The IRS simplified the calculation method, allowing $5 per square foot up to 300 square feet. That’s up to $1,500 in deductions most small business owners forget to take.

2. Vehicle and Mileage Deductions

If you use your personal car for business—visiting clients, delivering goods, or attending meetings—you can deduct mileage or actual vehicle expenses.

The standard mileage rate for 2025 is expected to remain around 67 cents per mile (check the IRS update before filing). That adds up quickly: a few client visits per week can equal thousands of dollars in deductible miles by year’s end.

Just make sure you keep a mileage log or use an app to track trips accurately—documentation is everything with the IRS.

3. Health Insurance Premiums for the Self-Employed

If you pay for your own health insurance, don’t skip this one. Self-employed individuals can deduct 100% of their health insurance premiums—including dental and long-term care—for themselves, their spouses, and dependents.

This deduction reduces your adjusted gross income (AGI), which can also lower your tax rate and make you eligible for other credits.

4. Retirement Contributions

Retirement contributions are one of the most powerful ways to reduce taxes and build long-term financial security.

Depending on your situation, you may be eligible to contribute to:

  • A SEP IRA (up to 25% of compensation or $69,000 for 2025)
  • A Solo 401(k) (up to $23,000 plus employer contributions)
  • A traditional IRA ($7,000, or $8,000 if age 50+)

Even better, you can make some of these contributions up until the tax filing deadline, which means there’s still time to lower your 2025 tax bill.

5. Professional and Software Fees

Did you pay for accounting software, tax prep tools, legal help, or business consulting? All of those expenses are deductible as long as they’re directly related to your business operations.

This is one of the easiest deductions to miss, especially for solopreneurs or freelancers who buy subscriptions throughout the year. Those “small” expenses add up fast—and every one reduces your taxable income.

Why It’s Worth Working with a Pro

Tax laws change constantly, and deductions that apply this year may not exist next year. That’s why working with a qualified tax professional can more than pay for itself.

A pro doesn’t just fill in forms—they help you strategize:

  • Identifying deductions you qualify for
  • Planning estimated payments
  • Reducing taxable income through proactive year-end planning

Even if you think your return is simple, one conversation could uncover hundreds or even thousands in savings.

Tax season doesn’t have to be a guessing game. By keeping good records and working with a qualified professional, you can capture every deduction you’re entitled to and keep more of what you earn.

Don’t let another year go by leaving money on the table. Make this the year you file smarter, not harder. Connect with the experts at Bookkeeper.com today.

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Wes Kirtz

Wes Kirtz

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