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BizReport : Law & Regulation : April 15, 2014

Survey: SMB's need more tax education

Small business owners may not be making the most of Tax Day here in the US. That is, according to a recent 99Designs survey which found upwards of one-quarter didn't know they could deduct marketing expenses from their taxes.

by Kristina Knight

New data out from 99Designs may have more small businesses taking a look at their tax forms. According to the report 27% of SMBs surveyed didn't know they could write off marketing expenses from their taxes; meanwhile about half (57%) of those who were aware they could write off marketing expenses said they would take the deductions.

Other interesting findings from the report include:

• 70% say they believe their marketing spending for 2013 had good results, 23% say they aren't sure
• Most SMBs said they focused on improving websites and social media efforts
• 64% of those who will take marketing deductions say the deductions for 2012 and 2013 are very much alike, 22% say they'll deduct more in 2013

As for how small businesses would spend tax deductions of $500 - revamped websites and mobile apps led the way, along with online ad campaigns.

"Finally, we asked business owners what they'd do if they received a $500 refund to put toward a single marketing channel. One-third (33%) would put the money into their websites, 17% would focus on Internet advertising, 14% would go the mobile app route, and 10% would funnel it to print ad campaigns," writes the company.

Image via Shutterstock

Tags: 99Designs, small business trends, SMB taxes, SMB tips

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