As a tax preparer, your clients look to you to tell them what deductions they can take to lower their tax bill or increase their refund. But claiming these write-offs often require proper documentation. In this article, we break down the most common tax deductions your clients may qualify for, from home office expenses to charitable contributions. We also outline the specific records and receipts they’ll need to provide to ensure their eligibility. Whether you’re preparing returns or advising clients ahead of tax season, this guide will help you navigate write-offs with confidence and accuracy.
How can I explain a write-off to my client?
A write-off is a slang term that describes an expense that qualifies as a tax deduction. Qualifying deductions can be deducted from your client’s total business revenue to determine their total taxable income. Taking write-offs is common among small business owners.
To qualify as a deduction, the write-off must be essential to running a business and common to the business’s industry. According to the IRS, a write-off doesn’t need to be 100% necessary, but it should be considered a normal expense that helps run the business.
Most business expenses are deductible, either fully or partially. As a result, small business owners tend to write-off as many qualifying expenses as possible to decrease the tax they need to pay.
What are some business expenses that my clients can write off for their small business?
The business expenses your client can write off will vary depending on the structure of their business, whether it’s a sole proprietorship, partnership, S corporation, or another entity type. While many expenses are fully deductible, some are only partially deductible or subject to limitations. For example, meals and entertainment expenses are typically only 50% deductible. Small businesses can typically write-off expenses in the following categories:
- Advertising and marketing expenses
- Business use of car
- Contracted labor costs
- Depreciation
- Education and training
- Salaries and employee benefits (such as health insurance)
- Insurance
- Interest
- Inventory (costs of goods sold)
- Legal and professional fees
- Meals and entertainment for clients
- Miscellaneous expenses (bank fees, wages, etc.)
- Office supplies and postage
- Office rent and leases
- Retirement plans for employees
- Supplies (internet, equipment, etc.)
- Startup and organizational costs
- Utilities for office space
Are there any charitable donations that qualify as a write-off for my clients?
Yes, charitable donations can qualify as a write-off for your clients, if they meet certain criteria. Clients can deduct donations made in cash or property (such as real estate or vehicles) provided they are made to a qualifying organization. These include:IRS recognized religious organizations
- Nonprofit schools and hospitals
- Other 501(c)(3) charitable organizations
Donations must be paid before the close of the tax year to be deductible, regardless of whether the taxpayer uses cash or accrual accounting. This means pledges or promised donations are not deductible until the payment or transfer of property is complete.
Is there a limit on charitable donations that my clients should know?
Yes, charitable contributions are subject to IRS limits based on the type of donation and the organization receiving it. Under current rules, cash donations to qualified public charities (such as churches, nonprofit schools, hospitals) are deductible up to 50% of your client’s adjusted gross income.
Donations to private foundations, veterans’ organizations, fraternal societies, and cemetery organizations are generally limited to 30% of AGI.
Starting in tax year 2026, the One Big Beautiful Bill introduces new limitations and deductions:
- The limit on cash gifts will increase from 50% to 60% of adjusted gross income.
- A 0.5% AGI floor for itemized deductions, only donations exceeding this amount are deductible.
- A new above-the-line deduction for non-itemizer of up to $1,000 for single filers or $2,000 for married filing joint filer for cash gifts to public charities.
These changes make it more important than ever to plan charitable giving carefully and ensure proper documentation.
Can I write off political contributions for my clients?
No. The IRS states that money contributed to a politician or political party can’t be deducted from your taxes.
Give the following list to your clients to reference if they frequently make political contributions. If your clients made contributions, donations, or payments in support of any of these, they client can’t deduct the amount from their taxes:
- Political candidate or party
- Admission to dinners or programs for a political candidate or party
- Political Action Committees (PACs)
- Campaign committees
- Advertisements in convention bulletins
- Newsletter fund
What form(s) do my clients need to fill out to report their write-offs?
The forms you must include with your clients’ tax returns will depend on the type of deduction they are claiming and their overall filing circumstances. Different types of expenses require different forms, and the client’s business structure can further influence which forms are necessary.
Charitable donations
To report charitable contributions, clients typically use Form 8283 when the amount is more than $500. Under the OBBB, a new above-the-line deduction for charitable contributions allows single filers to deduct up to $1,000 and joint filers to deduct up to $2,000. This means clients can claim a deduction for their contribution, even if they are not itemizing.
Small business write-offs
For clients who are small business owners, the forms required will depend on their business structure. Schedule C – Used by sole proprietors to report income and expenses.
- Form 1120 – Required for corporations to report business income, deductions and tax liability.
- Form 1065 – Used by partnerships that pass profits and losses on partners.
- Form 8829 – For clients who operate a business out of home.
- Form 4562 – Used to claim depreciation and amortization on property and assets.
