Tax Season’s Over—Now’s the Best Time to Maximize Deductions and Credits

You made it through tax season—take a deep breath.

But here’s something many small business owners don’t realize: the best time to start saving on next year’s taxes isn’t in April. It’s now.

Whether you’re self-employed, running a small team, or just getting your business off the ground, what you do in the months after tax season can make a big difference in your next return. With some simple, proactive steps, you can keep more of your hard-earned money and avoid last-minute stress.

1. Start Tracking Deductions Now

If you found yourself scrambling this year to find receipts or remember business expenses, now is the time to fix that.

Put a simple system in place to track your business-related costs consistently. That might be a dedicated folder in your email for digital receipts, a mobile app that logs mileage, or even a shared spreadsheet. Whatever method you choose, make sure you’re capturing:

  • Business meals and meetings
  • Travel and vehicle mileage
  • Home office expenses
  • Marketing and advertising costs
  • Software and tools subscriptions

Being organized all year long means fewer missed deductions and a smoother tax filing process next time.

2. Time Your Big Purchases Strategically

Thinking about buying a new laptop, vehicle, or office equipment? Strategic timing can turn these into powerful tax-saving tools.

Certain assets can be deducted immediately under Section 179, or depreciated over time. Either way, these purchases can reduce your taxable income. Planning ahead—rather than waiting until the end of the year—gives you more flexibility and confidence in your financial decisions.

3. Don’t Miss Out on Tax Credits

Unlike deductions, which reduce taxable income, credits reduce your tax bill directly—dollar for dollar.

Some common credits that small business owners often overlook include:

  • Retirement Plan Startup Credit – If you started a qualified plan, like a SEP IRA or solo 401(k), you could be eligible for up to $5,000 in credits per year.
  • Work Opportunity Tax Credit (WOTC) – If you hired employees from certain groups facing employment barriers, this credit may apply.
  • Energy Efficiency Credits – If you’ve invested in energy-efficient systems or electric vehicles for your business, these may qualify.
  • Research and Development Credit – Even small service-based businesses making internal process improvements might be eligible.

Tax credits often go unclaimed simply because business owners don’t realize they qualify. A mid-year check-in can help catch these opportunities.

4. Revisit Your Business Structure

The way your business is structured has a major impact on your taxes. Are you operating as a sole proprietor, LLC, or S Corporation?

Each entity type comes with different tax rules, income reporting requirements, and options for paying yourself. If your income has grown—or your business has changed—since you first chose a structure, this is a good time to review and possibly switch to one that’s more tax-efficient.

5. Make Quarterly Tax Planning a Habit

Don’t wait until next March to wonder how much you’ll owe. Schedule quarterly financial check-ins to review profits, set aside funds for taxes, and adjust your plans as needed.

Even simple conversations about what’s working, where you’re spending, and what changes are on the horizon can help avoid surprise tax bills—and missed savings.

Moving Forward with Confidence

Tax season may be over, but tax strategy is a year-round process. The earlier you start, the more options you have—and the more peace of mind you gain.

Don’t wait for next spring to start thinking about deductions, credits, or planning. Stay ahead, stay informed, and keep building a stronger financial future—one smart move at a time.