Attention insurance agents! There is a high possibility you aren’t getting the most out of your business expenses when it comes to your taxes. Make sure to talk with your accountant about these possible deductions for maximum return! Remember that many of these write-offs are conditional and you should always speak with a professional rather than make assumptions.
1. Licenses and Renewals
As long as you were already an agent, 2016 state licenses and renewals should be eligible deductions.
2. CE Courses
The money you spend on continuing education courses that you need to keep your insurance license, along with any study material, could also be deducted. This is likely only eligible if you’re not a new agent, where the courses were not used to prepare you for a new career. Talk to your accountant about how to itemize this deduction.
3. Meals and Entertainment
Business meals, like when you meet a client at a coffee shop or your FMO for dinner, can usually be deducted as long as it’s directly related to business and isn’t an overly expensive purchase.
4. Tech and Supplies
Your computer, printer, fax machine and any other technology, along with office supplies, you use to conduct business may also contribute to your deductions. There are some rules, especially if you use a home computer, about what counts, so make sure you talk with a professional about this one.
Marketing can be a large expense for any insurance agent or agency! Tell your accountant about anything from print materials and business cards to website upgrades you paid someone to perform.
6. Professional Services
Any fees paid toward legal, consulting, accounting or other services are good expenses to note as well.
Travel expenses incurred to and from a seminar as well as taxi bills, and other transportation are usually eligible. Make sure your travel is business related and you have your receipt!
8. Business Insurance
Insurance strictly for your company, like liability and E&O, can be a deductible. If you work out of your house, part of your home owners insurance may be eligible as well.
9. Conventions and Seminars
Events like the SMS Sales Summit, which you should definitely attend, can be write-offs too! Talk to your accountant about how to deduct your travel, hotel, and ticket expenses.
10. IRA Contributions
Many agents have IRA accounts, like our Road 2 Retirement program, which you may be able to deduct in the year you make contributions.