A tax category is automatically assigned to each expense you pay with your HoneyBook debit card. HoneyBook Balance uses a total of 27 categories, which refer to classifications used for determining the appropriate tax treatment of expenses and other financial activities.
Check out the categories below to learn more about what you can deduct:
Advertising and marketing
Advertising and marketing
Costs related to marketing and advertising your business, including:
Website hosting
Graphic design
Social media promotions
Printed materials
Email marketing costs
Branded swag
Bank and transaction fees
Bank and transaction fees
Fees charged by your bank, like monthly maintenance fees
Fees charged by platforms like PayPal, Stripe, or other credit card processors
Other fees, sometimes referred to as “Merchant Processing Fees,” like those charged by Etsy, for example, for using their platform
Charitable contribution
Charitable contribution
If you’re a C-Corp, you may be able to deduct charitable contributions made to qualifying organizations
However, if you’re a sole proprietor or LLC, you may only be able to deduct these on your personal taxes if you choose to itemize your deductions
Client gifts
Client gifts
If you give gifts in the course of your trade or business, you may be able to deduct all or part of the cost
$25 limit: Gifts to clients and employees are 100% deductible, up to $25 per person per year
Commission and fees
Commission and fees
Commissions paid to salespeople and affiliate payments made
Continuing education and training
Continuing education and training
Costs of professional development, including online courses, conferences, certifications, and educational subscriptions
The costs of “qualifying work-related education”
Education expenses to “maintain or improve skills needed in your present work”
Contract labor
Contract labor
Payments to independent contractors or freelancers for services rendered
Gas and fuel
Gas and fuel
Expenses for business use of vehicles, including mileage, gas, insurance, and maintenance
You can either deduct actual expenses or use the standard mileage rate
Home office expenses
Home office expenses
If you use a part of your home regularly and exclusively to conduct business, you may be able to deduct a part of the operating expenses and depreciation of your home
Insurance
Insurance
Premiums for business insurance, including:
Liability
Event insurance
Professional indemnity
Equipment insurance
Interest
Interest
Interest paid on business loans or credit lines
Legal and professional services
Legal and professional services
Fees paid to:
Lawyers
Accountants
Consultants
Other professionals for services related to your business
Licenses
Licenses
Licensing fees necessary for your business, such as:
Fees for incorporating your business or renewal fees thereafter
Professional licensing fees
Trademark fees
Meals with clients
Meals with clients
Expenses for business-related meals and entertainment, though these are subject to specific rules and limitations
Office expenses
Office expenses
A standalone classification from office supplies, as this could be used to describe any expenses incurred that may not fall under any subaccount
Office supplies
Office supplies
Costs for supplies and materials used in the office, including:
Paper
Pens
Computer software and applications
Payroll taxes
Payroll taxes
You can deduct the social security, Medicare, and FUTA taxes you paid out of your own funds as an employer
You can also deduct as taxes the payments you made as an employer to a state unemployment compensation fund or state disability benefit fund
Payroll wages
Payroll wages
Compensation paid to employees, including wages, salaries, and bonuses
Costs associated with providing benefits, such as health insurance, retirement plan contributions, and education assistance
Personal
Personal
Personal transactions paid for by the business
Rent
Rent
Payments for renting or leasing:
Office space
Equipment
Other business property
Shipping & postage
Shipping & postage
Costs associated with shipping or postage office expenses
Supplies
Supplies
Different from office supplies, as these could be things not specifically limited to the office, such as job supplies purchased for use during photography sessions
Tolls & parking
Tolls & parking
In addition to using the standard mileage rate, you can deduct any business-related parking fees and tolls
Travel airfare
Travel airfare
You can deduct the cost of travel by airplane, vehicle rental, train, taxi, and ridesharing between your home and business destination
"On-the-go internet expenses" such as mobile hotspots or flight and hotel internet for work purposes are also tax-deductible within travel
Travel lodging
Travel lodging
You can deduct the cost of your lodging if your business trip is overnight or long enough that you need to stop for sleep or rest to properly perform your duties
Travel meals
Travel meals
You can deduct the cost of meals if your business trip is overnight or long enough that you need to stop for sleep or rest to properly perform your duties
You can use actual expenses or the standard meal allowance to calculate your deduction
In most cases, you can deduct only 50% of your meal expenses
Utilities
Utilities
Costs for essential services such as electricity, water, and telephone
If it’s utilities for a home office space, only the home office portion may be tax-deductible
Still have questions? Feel free to send us a message by clicking the Question Mark icon on any HoneyBook page. Our team is always happy to help!
HoneyBook is a software company, not a bank. Banking services are provided by Lincoln Savings Bank, Member FDIC. HoneyBook Visa Debit cards are issued by Lincoln Savings Bank, Member FDIC. HoneyBook is not FDIC insured. FDIC insurance only covers the failure of an insured bank.