Adopting good recordkeeping habits ensures you capture all eligible write-offs. Proper documentation is key in case of an audit. Maintain an expense tracking spreadsheet. Calculate the percentage of cell phone use for business vs. Take pictures of receipts or use apps to scan and organize them. Save receipts for all purchases and track mileage logs for business travel. Meticulous recordkeeping is crucial for maximizing hair stylist tax deductions. Other Tax Deductions for Barbers, Beauticians, and Stylists Services such as dry cleaning, advertising, or having the salon clean are examples of services needed to maintain the integrity of your business. Homeowners calculate the deduction based on the percentage of homes used for business, while renters deduct a portion of rent.Įnsure your home office meets the rules to claim this valuable deduction. The space must be used regularly and exclusively for business. The home office deduction can provide substantial tax savings but requires meeting strict IRS requirements. Operating costs are the expenses needed to maintain your business such as uniforms, insurance, booth space, etc. Your CPA (Certified Public Accountant or trusted Tax Advisor can go into more detail on depreciation with you).ĭepreciation means you can claim some of the equipment costs for a smaller tax break over a few years (read more about the process called depreciation here). The IRS treats these differently, in the fact that you can write off up to $5,000 of your taxes, with the rest being depreciated over 15 years. Start-up expenses are everything you spend to get the business running such as equipment, rent, marketing, etc. Tuition for school has to be done separately from the 1098-T formthat you will receive from your school.įile with Ease from Home Today! 4 – Start-up and Operating Expenses Subscriptions to magazines related to your job also count as deductions since you need them to stay up-to-date with the latest trends and fashions. Once licensed, you can deduct the cost of any continuing education classes needed to improve your skills. Along with any travel associated with obtaining your continued education, such as hair shows or conferences. When it comes to your education, which is highly important to stay competitive, these fees can also be written off. You can also write off fees for your local business license. The good thing for you is that you can write off the fee associated with getting your license and maintaining your license. 3 – Licenses and Educationīeing licensed is a common requirement for professionals in the beauty industry. Power Tip: Keep a good record of each item you buy, just in case you need it in the future for the IRS. 2 – SuppliesĪny amount you spend on materials you purchase as a stylist or barber for your business or job. If you’re thinking about something more in the fashion sense, you’d have to be able to prove its necessity for accomplishing your job. For example, an apron, a smock, or shoes are items you can write off when doing your taxes. Your work outfit has to be specific to the work you do as a stylist, beautician, or barber. I’ve put together a quick and FREE generalized tax deductions checklist for stylists, barbers, manicurists, and other beauty professionals for you to download below. However, if you are an employee receiving a W-2, unreimbursed employee expenses are no longer deductible after the Tax Cuts and Jobs Act of 2017. When preparing for the tax season, please keep in mind that you can write off expenses that are common for your profession and ones that are necessary to help you run a business.Īs a self-employed hair stylist, you can reduce your taxable income through business deductions for ordinary and necessary expenses. This means if you click on any of the links, I’ll receive a small commission. In this article, I will show you how to get the most business deductions and lower your tax bill. The first thing you will want to do is to make sure all your documents are in line. I am definitely aware of this and I always want to make your life easier when it comes to helping you prepare your taxes. The last thing you want to worry about is making sure your taxes are prepared correctly and with optimal care. You’re in the world of perfecting your client’s physical appearance whether it is through hair, fashion, or makeup. Many tax deductions for barbers and beauty professionals are missed each year!
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