(Please note: these are simply tips from Social:Managed, you should always consult with your accountant or financial advisor with any concerns regarding filing your taxes) 

If you are a small business owner, you know first-hand the struggles that go into filing your taxes every year.  Can this expense be deducted?  Can that be deducted?  It can be a lot! 

Social: Managed, a leading digital marketing company in Kansas City, has some good news for you though.  Marketing expenses are tax-deductible! 

According to the IRS, the government does allow you to deduct many expenses.  These expenses can be for your existing clients or the expenses you incur that help bring in new customers.  However, please note that you can only deduct your marketing costs directly related to your business activities. 

Here is a list of common items that may be able to be deducted from your taxes: 

  • Email Marketing 
  • Media Advertising (newspapers, magazines, TV, internet, radio, cable) 
  • Banner Ad Expenses (excludes political websites) 
  • Print Advertising (business cards, brochures, web pages) 
  • SEO Services (fees for a digital marketing agency in Kansas City like Social: Managed. 
  • Search Engine Advertising 
  • Social Media Advertising 
  • Promotional/Public Relations Expenses (t-shirts, mugs, pens, sponsorships) 
digital marketing company in Kansas City

Although there are many tax-deductible items when it comes to using a digital marketing agency in Kansas City , we want to make you aware of some items that are NOT tax-deductible.  There is a bit of a grey area for some items, but the best rule of thumb is that if it is primarily a personal item, it will likely be non-tax-deductible. 

Here is a list of items that are NOT tax-deductible: 

  • Advertising expenses for research and development activities 
  • Advertising used to donate to a political contribution indirectly 
  • Ads on vehicles (the ad itself is tax-deductible, but the operating expenses of the vehicle are not deductible) 
  • Donations to a charity or non-profit organization (these may be deductible in other areas of your tax return) 

When you go to file your taxes, you may wonder where you go to input these deductions.  That all depends on the type of business you have.  Here is a quick list of the different types of businesses and some instructions for each. 

Sole Proprietorships & Single Member LLCs 

File on Line 8 in Part II-Expenses of Schedule C. 

Partnerships and Multiple-Member LLCs 

File on Line 20 in the Other Deductions section of Form 1065: Partnership Income Tax Return. 

Corporate Tax Returns 

Use form 1120: Corporate income tax return and file on Line 22. 

As a leading digital marketing company in Kansas City that, Social: Managed knows how important it is to get your name out there to potential clients. We are also at the top of the industry for Kansas City website design as well as being one of the best SEO companies in Kansas City  Our mission is to provide our customers with a seamless marketing experience across all of their digital assets.

We also know how important it is for your business to maximize every dollar that you have earned.  We hope these tips on marketing and tax-deductions benefit you and your business when filing your taxes in 2020.