Tax season can catch small business owners off guard, especially when rules and filing requirements change. Understanding what’s different for the 2024 tax year will help you file accurately and avoid penalties in 2025. 

Whether you handle taxes yourself or hire help, organized records and tools like simple small business bookkeeping software can make a big difference. In this article, we’ll answer key tax season questions, highlight important changes, and outline steps you can take to file with confidence this year. 

 What’s new for the 2024 tax year? 

A few notable updates for the 2024 tax year will affect how small businesses prepare and file in 2025. Some of these changes are relatively small but still worth knowing: 

When are the 2025 tax deadlines for small businesses? 

Tax filing deadlines vary depending on how your business is structured: 

  • Partnerships and multi-member LLCs: March 17, 2025 (file Form 1065) 
  • C corporations: April 15, 2025 (file Form 1120) 

These dates are based on calendar year filing. If your business uses a different tax year (such as fiscal year filing), most forms will be due on the 15th day of either the third or fourth month after the end of the tax year. If the 15th falls on a weekend, the due date is the next business day (which is why some forms above are due on March 17). 

If your business needs more time, you can request a six-month extension using Form 7004. Just remember—an extension to file is not an extension to pay, so you may still owe penalties and interest on the unpaid amount until you pay. 

What deductions are still available in 2025? 

Most of the standard small business tax deductions remain unchanged for the 2024 tax year. Some of the most commonly used include: 

  • Business use of your vehicle, calculated using either actual expenses or the IRS mileage rate 
  • Home office deduction, if a portion of your home is used exclusively for business 
  • Business meals, generally 50% deductible 
  • Office supplies and technology 
  • Employee wages and benefits 
  • Self-employed health insurance premiums 

Keeping well-categorized financial records is essential. If you haven’t already found a simple small business bookkeeping software solution that works for your business, now is a good time to choose and set up a digital bookkeeping solution. It helps track deductible expenses throughout the year and reduces the risk of missing valuable write-offs. 

How do I report income from payment platforms? 

Many small business owners now accept payments through platforms like PayPal, Stripe, or Square. These third-party processors are required to issue Form 1099-K if your business receives more than $5,000 through one of these platforms. (This limit is set to decrease again in 2026.) 

However, even if you don’t receive a 1099-K, you’re still responsible for reporting all business income. The IRS uses other methods to detect unreported income, including data-matching and audits. Always keep internal records of payments received so you don’t have to rely solely on what forms are issued to you. 

Can I deduct expenses paid from a personal account? 

Yes, you can deduct legitimate business expenses even if they were paid from a personal bank account. That said, using personal accounts for business adds risk and complexity. It can be difficult to prove certain expenses were truly business-related, so make sure you have adequate records to back it up if you’re going to claim these expenses. 

To make tax season easier in the future: 

  • Open a business checking account 
  • Use a dedicated business credit card 
  • Avoid mixing personal and business transactions 

Separating your finances doesn’t just help with taxes—it makes your business more professional and easier to manage year-round. 

What tax records do I need to keep? 

The IRS recommends keeping all records that support income, deductions, and credits for at least three years. This includes: 

  • Invoices and receipts 
  • Canceled checks and bank statements 
  • Mileage logs (if claiming vehicle expenses) 
  • Payroll records 
  • Forms W-2, W-4, W-9, and 1099 
  • Copies of previous tax returns 

Some documents, such as those related to asset purchases or payroll taxes, should be retained longer—up to seven years. Consider using digital storage or a secure cloud system to keep everything organized and accessible if needed for an audit. 

Should I hire a tax professional? 

Depending on the complexity of your business, hiring a tax professional can save you time and help you avoid costly mistakes. You may want to work with a Certified Public Accountant (CPA) or enrolled agent if: 

  • You’re claiming significant deductions or credits 
  • You have employees or independent contractors 
  • You changed your business structure 
  • You received an IRS notice or audit request 
  • You’re an independent contractor  

A professional can also help with year-round tax planning—not just filing. If you’re unsure, many tax professionals offer a free consultation to help you decide whether their services are worth the investment.  

With new e-filing rules and deduction limits in effect for 2024, small business owners need to be alert to the latest tax changes. Use this guide as a starting point, and don’t hesitate to reach out to a trusted tax professional if your situation is more complex. The more you prepare now, the smoother tax season will be in 2025.