Tax season is coming up, so buckle up, we're diving into the world of tax deductions.

A tax deduction is like finding money in your pocket that you forgot you had.

It's a nifty way the IRS says, “Hey, you spent some money on your business; we'll cut you some slack.” So if you shelled out $3,000 for getting the word out about your business — in other words, marketing — you get to take that off your total earnings. If your revenue was $150,000 and you claim that $3,000 as a tax deduction, now it's like you only made $147,000 in the government’s eyes.

Don't get tax credits mixed up with deductions. They're both good, but credits are like gold. They take off real dollars from your tax bill, while deductions just whittle down the amount the taxman sees as your income.

The government hands out credits to pat you on the back for doing good stuff — like investing in cool things or being eco-friendly. So, if you owe $20,000 in taxes, but you snag a $5,000 credit for driving an electric vehicle, your tax bill drops to $15,000, and you've got some extra green in your pocket.

That's the tax game in a nutshell. The IRS has a rulebook, and it's thicker than the Bible. It's called Publication 535, and it's like a GPS for navigating the maze of deductions. But sometimes, you have to play detective.

Let's dig into some of the common deductions for small businesses.

Advertising and marketing: If you’re spending money on ads or just spreading the word, those costs are 100-percent deductible.

This can include things like:

• Production costs for advertising materials (business cards, logos, etc.).

• Media advertising costs (TV, print, radio, or online).

• Event sponsorships (excluding lobbying or sponsoring political events/campaigns).

Automobiles: Since you’re using your wheels for your business, you can either count the miles or go with the standard mileage rate set by the IRS.

In greater detail, the two methods to calculate your motor vehicle tax deduction are:

• Actual expense: Here, you track your mileage plus all car expenses (insurance, gas, repairs) and deduct the business percentage of those costs. You may be able to deduct a depreciation amount each year.

• Standard mileage rate: Here, you deduct a set amount per business mile driven. The IRS sets the amount each year. Beginning January 2023, the standard mileage rates for the use of a car (also vans, or trucks) was 65.5 cents per mile driven for business use. Using the standard mileage method, you don’t need to track what you spend on car expenses — just your business mileage and total annual mileage. If you’re considering writing off car expenses using the mileage deduction method, you should make sure you are eligible and prepared to track mileage for taxes.

Bad debts: Some of us have had customers who’ve refused to pay. Write it off. (That means you have to use the accrual accounting method, where you report income in the tax year you earned it, regardless of when you are paid. With the cash accounting method, you don’t record income until you’re paid, so you can’t deduct bad debts, and there’s no tax benefit.)

Bank fees: Every business needs a bank account, and if you're paying those monthly or annual bank fees, service charges, transfer fees, merchant or third-party payment processor fees, you can deduct them on your tax return.

Books and professional journals: Keeping up with the latest in your field? Well, those books and subscriptions are deductible, as long as they are related to your business.

Business equipment and office supplies: From computers to paper clips, if it's helping you make a buck, it's deductible. That includes things like machinery, furniture, office machines, electronic devices, computers, and more. Staples, sticky notes, printer ink or toner — all the office supplies you use for your business during the year are all 100-percent deductible. Business insurance: It might feel like a rainy-day fund, but if it's necessary for running your business, you can deduct those insurance costs. It's like getting a discount on your business umbrella, which state laws, contracts, or industry regulations require businesses to carry. These include:

• Accident and health insurance.

• Casualty and theft insurance.

• Workers’compensation insurance.

• Professional liability or malpractice insurance.

• Motor vehicle insurance (for business vehicles).

Business loan interest: If you're paying interest on loans, make sure the business loan is in the company’s name and deduct it.

Business meals: The IRS loosened up a bit on this one. You can deduct 50% of business-related meals and even go 100% for special qualifying ones. Just don't turn every lunch into a 5-course dinner.

To be eligible for the deduction, the IRS requires that:

• An employee or taxpayer must be present at the meal.

• The meal must not be “lavish or extravagant.”

• The expense must be ordinary and necessary for running your business.

• The meals may be provided to potential or current business clients, customers, consultants, or similar business contacts.

Employee expenses: Payroll, benefits, hiring costs, awards, bonuses, employee benefits (dependentcare assistance, retirement plans, educational assistance, flights, meals, and lodging), and even vacation time paid to your workers and even the coffee in the break room can be written off. As long as you're paying your people for work done, it's tax deductible.

Equipment Leasing: Leasing gear for your business? Well, that's taxdeductible. Whether it's a shiny new photocopier or a paper shredder, if you've got the lease papers, you're in the clear.

Rent: So, you've got this cool business space, be it an office, or a warehouse — rent is part of the game. The good news? You can deduct those rental payments. And if you're working from your home, you can claim some deductions too — repairs, mortgage interest, property taxes, and some utilities — based on the percentage of your home that is devoted to your business.

Software Subscriptions: On the digital front, your internet services, domain registration, web hosting — all those cool online tools and apps that make your business go round? They're also tax deductible. If your business toolkit includes Skimmer, Pool Office Manager, or Ion, consider that subscription cost 100-percent deductible. It's like getting a tax discount for being tech-savvy.

Start-up Expenses: Remember the rollercoaster of getting your business off the ground? Well, guess what — it comes with a tax-deductible pass. Registration fees, legal fees, office supplies, and even the marketing expenses that put your brand on the map — they all reduce your tax bill. Just make sure they're the regular, run-of-the-mill expenses your business simply can't live without.

Tax and Licenses: You can deduct a bunch of them — payroll tax, personal property tax, state income tax, excise tax, sales tax, fuel tax — you name it. If it's a tax, and it's essential for your business survival, it's a deduction. Plus, annual fees paid to obtain or renew required business licenses that are ordinary and necessary are also tax deductible.

So that's the scoop on deductions. Remember, keep it 'ordinary and necessary.” And if you're feeling lost in the tax jungle, send a smoke signal to a friendly CPA.