The Ultimate 2025 Tax Deductions Checklist for Insurance Agents

Note: This article has been updated for 2025. Disclaimer: We are not tax professionals. Please consult with your accountant or CPA for tax advice.

Tax season is here, and we’ve put together a comprehensive tax deductions checklist specifically for independent insurance agents.

Before we dive into the checklist, here are a few things to keep in mind:

1. Get a professional to help you
2. Understand what counts as a deduction

Get a Professional to Help You

If you’re running your own business, it’s essential to work with a professional. The saying goes that hiring a CPA (Certified Public Accountant) can pay for itself, as they help uncover every potential deduction, ensuring your taxes are filed accurately.

CPAs are licensed by the state and must stay updated on the latest tax laws, while regular accountants don’t have the same licensing requirements.

If you don’t already have a CPA, you can always do some online searching, but call several offices to get a feel for your options.

When it comes to deductions, keeping track of your receipts and expenses is crucial. While your CPA can guide you on deductions, you must have proper documentation to back up your claims.

What Counts as a Deduction?

Your business expenses must be ordinary and necessary in order to be deducted from your taxes.

• Ordinary expenses are common and accepted in your industry.
• Necessary expenses are helpful and appropriate for your business.

For expenses related to both home and business use, you need to accurately allocate the percentage used for each. For instance, if your home office is 200 square feet in a 2,000-square-foot home, you can only deduct 10% of your mortgage payments, insurance, utilities, and similar costs.

Tax Deductions for Insurance Agents

Car Allowance

• Mileage driven → MileIQ or TripLog can make this easy
• Gasoline
• Oil
• Repairs
• Depreciation
• Parking fees
• Tolls
• Registration fees

Note: Use Schedule C and Form 2106. The standard mileage rate for 2024 is 67 cents per mile. For 2025, it is 70 cents per mile.

Continuing Education

• State licenses
• Renewals
• Courses
• Certifications
• Subscriptions to professional, technical, and trade journals that deal with your business field
• Books

Note: Use Schedule A. Only continuing education that maintains or improves your existing career qualifies.

Insurance

• Health insurance
• Long-term care insurance
• Dental insurance
• Business insurance
• Part of your homeowner’s insurance
• Vehicle insurance

Note: Use Schedule A, Form 2106 and Form 1040. You can only deduct business-related insurance costs. For homeowner’s insurance, you can deduct a portion based on the square footage of your home office.

Work Travel

• Meals and entertainment
•  Flights
•  Baggage fees
•  Taxis
•  Hotels
•  Tips

Note: Use Form 2106. Half of the meals and entertainment tab can be deducted for business-related meals and entertainment. You must keep receipts, a note of who was entertained, and what the purpose of the meeting was. Note that if the meal is lavish or outrageously expensive, it will not count as a valid deduction.

Office Space

• Home office
• Utilities
  • Heat
  • Lights
  • Power
  • Telephone service, but only for long-distance calls or a second line (the first line is not deductible)
  • Internet
  • Water
  • Sewage
• Office desk
• Repairs  
  • Reconditioning floors
  • Repainting the interior or exterior walls
  • Cleaning and repairing roofs and gutters
  • Fixing plumbing leaks

Note: Use Form 8829, Schedule C, and Schedule A. For home office deductions, calculate the percentage of your home used for business, then apply that percentage to the relevant expenses.

Office Supplies and Equipment

• Computer
• Printer
• Scanner
• Paper
• Ink
• Software
• Maintenance
• Paper clips
• Postage stamps
• Presentation folders
• Copying costs
• Overnight deliveries
• Stationary
• Pens
• Paper
• Stapler
• Docusign
• Internet fees
• Greeting cards

Note: Use Schedule C. Your computer must be used for business at least 50% of the time to qualify for deductions.

Random

• Advertising
• Charitable contributions
• Tax preparation fees (for the business portion of your tax return)

Note: Use Schedule A and Schedule C.

Top Tax Deductions for Independent Insurance Agents

Here are some of the biggest deductions you may have:

• Office/Building rent or home office space. Whether you rent office space or work from home, you can deduct rent and utilities like phone and internet.
• Advertising. Ads on social media, business cards, and more are deductible.
• Continuing education and training. State licenses, AHIP fee, and continuing ed classes are all tax deductible – and they add up.
• Travel. Expenses related to client travel or business trips, such as vehicle use, flights, hotels, and parking, are deductible.
• Software. Your CRM, scheduling system, and website maintenance costs are deductible—often some of the largest expenses for independent agents.

How to Keep Track of Your Tax Deductions

It’s important to track receipts and expenses throughout the year to simplify the process come tax season. If you don’t already have a system, here are some tools that can help:

• Evernote Scannable (free app) lets you scan receipts and save them to cloud storage.
•  Expensify is another option that simplifies expense tracking.

Also, consider using services that automate your deductions, such as MileIQ or TripLog for tracking mileage or a system like Xero for automating business expense reporting.

Conclusion

While our checklist can help guide you, we always recommend working with a tax professional to ensure you’re filing correctly and maximizing your deductions. Be sure to consult the IRS and tax professionals for the most up-to-date information.

The U.S. Small Business Administration also has a helpful website to assist you in paying your taxes appropriately. 

If you’d like to take our checklist with you, download the PDF below to keep track of your tax deductions as you file your taxes for the 2024 tax year.