Filing Taxes This Year – Tax season can be daunting, especially for small business owners and independent creators juggling multiple revenue streams, expenses, and compliance requirements. With the 2025 tax filing season underway, understanding key deadlines, new tax regulations, and available deductions can make the process smoother while ensuring you maximize your tax savings. 

This guide covers essential tax considerations for small businesses and creators, including IRS updates for filing taxes in 2025 for the 2024 tax year, common deductions, and best practices to avoid penalties. Whether you’re working with an invoice software for small business or going it alone, these are the essential facts to know that will help you keep up with the ever-changing world of small business taxes.  

1. Tax Changes for the 2024 Tax Year 

Several changes affect how small business owners and creators should approach their tax filings for income earned in 2024: 

  • 1099-K Reporting Threshold: The IRS has adjusted reporting requirements for third-party payment platforms (e.g., PayPal, Venmo). For the 2024 tax year, the threshold for issuing 1099-K forms has been set at $5,000, a significant reduction from the previous $20,000 and 200-transaction threshold. This change is part of a phased approach, with even lower thresholds expected in future years. Creators who receive payments via digital platforms should be prepared to report these earnings. 
  • Standard Deduction Increases: The standard deduction has increased to $14,600 for single filers and $29,200 for married joint filers, reducing taxable income for those who don’t itemize. Small business owners operating as sole proprietors may benefit significantly from these increases. 
  • Retirement Plan Contribution Limits: The contribution limit for SEP IRAs and solo 401(k)s has increased again, allowing self-employed individuals to save more tax-free. Maximizing retirement contributions can reduce taxable income while securing future financial stability. 
  • Changes to Energy-Efficient Tax Credits: If your business has invested in energy-efficient upgrades such as solar panels or other green initiatives, you may qualify for newly expanded tax credits in 2024. 

2. Essential Tax Deductions for Small Businesses and Creators 

Taking full advantage of deductions can significantly reduce your taxable income. Some of the most commonly overlooked deductions include: 

  • Home Office Deduction: If you work from home, you may be eligible to deduct expenses such as rent, utilities, and internet. The IRS allows a simplified deduction of $5 per square foot, up to 300 square feet. Creators who use dedicated workspace for content production or client meetings should ensure they track all home office expenses. 
  • Business Expenses: Business expenses like equipment, software subscriptions, and advertising costs are often tax-deductible. For example, video editing software, professional cameras, or digital art tools all qualify as business expenses for content creators (when used for business purposes). 
  • Health Insurance Premiums: Self-employed individuals can deduct health insurance costs for themselves and their families, including dental and vision insurance, if paid out-of-pocket. 
  • Vehicle Use: Business-related mileage can be deducted at the 2024 IRS standard mileage rate. For creators who travel for brand collaborations, photography shoots, or speaking engagements, maintaining a mileage log can maximize deductions. 
  • Professional Development: Courses, certifications, and workshops related to business growth, such as marketing training, accounting courses, or skills development programs, may be deductible as a business expense if they meet certain requirements. 
  • Retirement Contributions: Contributions to a SEP IRA, SIMPLE IRA, or solo 401(k) can reduce taxable income and help build future savings. 

3. Common Tax Mistakes to Avoid 

Many small business owners and creators make errors that can lead to audits or missed deductions. Avoid these common pitfalls: 

  • Not Keeping Proper Records: Maintain organized records of income and expenses to support your deductions. Digital bookkeeping tools can simplify this process, so comparing the best accounting software products available is best to find one that fits your business. 
  • Forgetting Estimated Tax Payments: If you expect to owe $1,000 or more in taxes (or $500 and up for corporations), you must make quarterly estimated payments to avoid penalties. Creators and freelancers should set aside funds for these payments throughout the year. 
  • Mixing Personal and Business Expenses: Keep separate accounts for business transactions to simplify bookkeeping and prove business-related expenses. A dedicated business credit card can help track these purchases. 
  • Ignoring Self-Employment Tax: Entrepreneurs and freelancers must pay 15.3% in self-employment taxes, which covers Social Security and Medicare contributions and is typically paid as part of your estimated tax payments. Factoring this into pricing strategies ensures you don’t undercharge for your services. 
  • Not Claiming All Eligible Deductions: Some business owners fail to claim deductions they are entitled to, such as software tools and health insurance premiums.  

4. Best Practices for Filing Taxes in 2025 

To streamline the filing process and optimize your tax savings, consider these strategies: 

  • Hire a Tax Professional: An accountant with experience in small business taxes can identify deductions, help with preparation, ensure compliance, and generally make tax season less stressful. One especially important factor is that for content creators earning income from various sources, a tax professional can clarify which earnings require separate documentation. 
  • Review IRS Forms and Guidance: Forms like Schedule C (Profit or Loss from Business) are crucial for sole proprietors and creators with freelance income. 
  • File Electronically for Faster Processing: The IRS recommends e-filing to receive refunds quicker and reduce errors. Creators with multiple revenue streams may also want to work with an accountant to ensure accurate reporting. 

5. Important Tax Deadlines for 2025 

Missing important tax deadlines can result in penalties and added stress. Here are the key dates for filing taxes in 2025 for the 2024 tax year: 

  • January 15, 2025 – Q4 2024 estimated tax payments due for self-employed individuals. (If you missed this, make your payment as soon as possible.) 
  • January 31, 2025 – Deadline for employers and businesses to send out W-2 and 1099 forms to employees and contractors. 
  • March 31, 2025 – Deadline for 1099 issuers to electronically file 1099 forms with the IRS.  
  • April 15, 2025 – Individual tax returns (Form 1040) and sole proprietorship filings due. Also, the first due date for Q1 2025 estimated tax payments. 
  • October 15, 2025 – Extended deadline for individual tax returns. 

Tax filing is easier when you stay informed and organized. Keep track of income, deductions, and deadlines to avoid penalties and maximize savings. Whether you file on your own or hire a professional, planning ahead helps ensure a smoother process and better financial outcomes for your business.