Marketing is a necessary expense in running any business and the IRS acknowledges as much. You may run advertisements on or on the Internet, radio, television, magazines, newspapers, and other media to sell your products or services. You should be deducting all the associated costs on your tax returns.

Ordinary Marketing Expenses
Marketing costs must be “ordinary and necessary” business expenses to be deductible. Put in layman’s terms, you marketing must be reasonably related to the promotion of your business and the expense amount must be a reasonable amount.

Deductible Marketing Expenses
Common deductible marketing expenses include the costs associated with the following items:
A. Yellow Page Advertisements,
B. Business Cards,
C. Advertisements in print media such as newspapers,
D. Telemarketing,
E. Business Cards,
F. Web site costs including creation and maintenance,
G. Costs for Advertisements on the Internet,
H. Billboards, and
I. Graphic design costs.
Goodwill Marketing for Your Business

Marketing that is intended to portray your business positively can be deducted. Such marketing creates a long-term potential for business and, thus, falls within the ordinary and normal requirements of the tax code. Examples of such marketing include:
A. Sponsoring local youth sports teams,
B. Distributing samples of your business product, and
C. Costs associated with prizes offered by your business in a contest.

If your marketing expenses can be related to the promotion of your business, you should be deducting said expenses from your gross revenues. If you failed to claim any such expenses on your tax returns, you’re overpaid your taxes.