5 Tax Deductions Jackson, TN Small Business Owners Miss Every Year
We've been doing taxes for small business owners in Jackson and West Tennessee since 1979. And every year, without fail, we see new clients walk through the door who've been overpaying on their taxes — sometimes by thousands of dollars — because nobody told them about deductions they were entitled to.
It's not that these business owners are doing anything wrong. It's that their previous accountant (or their tax software) wasn't asking the right questions. Here are the five deductions we see missed most often.
1Home Office Deduction
If you run your business from home — even part-time — you may qualify for the home office deduction. This applies whether you own or rent, and it covers a portion of your mortgage or rent, utilities, insurance, and repairs. The IRS offers a simplified method ($5 per square foot, up to 300 square feet) that many business owners don't even know exists.
The key: your home office has to be used regularly and exclusively for business. A dedicated room or workspace counts. Your kitchen table where you also eat dinner does not.
2Vehicle Expenses
If you use your personal vehicle for business — meeting clients, running to the bank, picking up supplies — those miles are deductible. For 2026, the IRS standard mileage rate is expected to be around 70 cents per mile. If you drive 10,000 business miles in a year, that's a $7,000 deduction.
The mistake we see: people don't track their miles. You need a log. It doesn't have to be fancy — a notes app on your phone works fine — but you need to record the date, destination, business purpose, and mileage for every trip. No log, no deduction.
3Retirement Plan Contributions
This is the big one. If you're self-employed or own a small business and you're not contributing to a SEP IRA, SIMPLE IRA, or Solo 401(k), you're missing one of the most powerful deductions available. A SEP IRA alone lets you contribute up to 25% of your net self-employment income — potentially tens of thousands of dollars — and deduct every penny.
You're saving for retirement AND reducing your tax bill at the same time. We help our clients figure out which retirement plan makes the most sense for their situation and income level.
4Health Insurance Premiums
If you're self-employed and paying for your own health insurance, those premiums are deductible. This includes medical, dental, and long-term care coverage for you, your spouse, and your dependents. It's an above-the-line deduction, which means you get it even if you don't itemize.
We've seen Jackson business owners paying $800-$1,500 a month in premiums and not deducting a dime because they didn't realize they qualified. That's $10,000-$18,000 in deductions left on the table every year.
5Professional Development & Education
Conferences, courses, certifications, books, and subscriptions related to your business are deductible. Traveled to Nashville for an industry conference? The registration fee, hotel, meals, and mileage are all potentially deductible. Took an online course to improve your skills? Deductible.
The rule of thumb: if it makes you better at your current business, it's probably deductible. If it prepares you for a completely new career, it's not.
The Bottom Line
Here's the thing about missed deductions: they add up. One or two might cost you a few hundred dollars. All five together could easily mean $5,000-$15,000 in additional deductions, which translates to real money back in your pocket.
At Steele Martin Jones, catching these things is just part of what we do. We ask the questions your tax software can't — because we actually sit down and talk with you about your business, your goals, and your financial situation. That's the difference between filing a tax return and actually planning for your taxes.
Ready to Take the Next Step?
Book a free consultation with one of our accountants — we'll review your situation, answer your questions, and put together a plan that makes sense for you. No pressure, no jargon, just a real conversation.
