Tax Time? Your Essential Small Business Tax Checklist for 2025

Tax season can feel overwhelming, but with proper documentation and a clear checklist, you can make the process much smoother. Whether you're working with a professional or filing your own taxes, use this comprehensive 2025 tax checklist to make sure nothing gets missed.

Income:

• Gross receipts from sales or services
• Sales records (for accrual-based taxpayers)
• Returns and allowances
• Business checking/savings account interest (1099-INT or bank statements)
• Other income (e.g., affiliate payments, rental income)

Cost of Goods Sold (If Applicable):

• Beginning inventory total (in dollars)
• Inventory purchases during the year
• Ending inventory total
• Inventory taken for personal use
• Materials and supplies used in production

Expenses:

Advertising & Communication

• Marketing and advertising costs
• Landline, fax, or mobile phones used for business
• Computer and internet expenses

Transportation & Travel

• Local transportation (bus, Uber, taxis, etc.)
• Mileage logs or actual vehicle expenses
• Business travel (airfare, hotels, meals, tips) and internet expenses
• Internet expenses incurred during travel

Contractors & Commissions

• Amounts paid to subcontractors or freelancers
• Required Forms 1099-MISC and 1096

Depreciation

• Cost and date of purchase for assets
• Records of personal vs. business use
• Sales or disposals of business assets

Insurance

• General business insurance
• Errors and omissions (E&O) coverage
• Casualty loss coverage

Interest Expenses

• Mortgage interest on business property
• Interest on business loans
• Investment-related interes

Professional Services

• Legal, accounting, and consulting fees

Office Supplies

• Pens, paper, staples, printer ink, and other consumables

Rent Expenses

• Office space rent
• Business-use vehicle lease payments

Office-in-Home Deduction:

• Square footage of home used exclusively for business
• Total home square footage
• Mortgage interest or rent payments
• Home insurance
• Utilities
• Cost of home and improvements
• First date of business use
• Hours of use (for daycare providers)

Wages & Payroll Taxes:

• Form W-2 and W-3
• Federal payroll returns (Forms 940, 941)
• State payroll tax filings
• Federal payroll returns (Forms 940, 941)
• Employee benefit expenses (e.g., health insurance, retirement plans)

Contractors

• Amounts paid to independent contractors
• Filed Form 1099-MISC and 1096 as required

Other Business Expenses:

• Repairs and maintenance of office or equipment
• Equipment rentals
• Software subscriptions
• Bank fees
• Health insurance (self-employed or for partners/shareholders)
• Estimated tax payments made during the year
• Other eligible business-related costs

Having this checklist ready for tax season ensures fewer surprises and smoother communication with your accountant. If you’re unsure about any line item, reach out to a tax professional for guidance tailored to your business.