Tax season is (regrettably?) here. But guess what? Now that you've found this blog, there’s no reason to fear.
Look, we get it—people dread tax season for good reason. It tends to be stressful, time-consuming, and (let’s be honest) a massive drag. There’s nothing fun about it for the vast majority of beauty professionals. And unless you went to school for cosmetology AND accounting, it can feel super overwhelming. (Did you do it right? Did you calculate everything correctly? Did you double-check all your numbers?)
But if there’s one thing that can put a pep in your tax-time step, it’s write-offs. These handy little deductions reduce the amount of money you owe. That sounds like a big win to us.
So, before you let the despair that is tax season take you down, read on. Equipped with the information here, you can maximize your beauty business tax write-offs and keep more money in your pocket this April.
Key Takeaways: Write-offs are a beauty business’ ticket to tax deductions and tax season savings. Maximizing your deductions with common write-offs is an essential tax season practice.
The Top Business Tax Write-Offs for Cosmetologists
Rent and Office Space
The cost of your salon space can be written off on your taxes. Depending on your unique situation, this could look like writing off rent for your building, your shop space within a salon, or even your home office.
When calculating the amount you can deduct from your taxes, it is important to follow IRS guidelines. Thankfully, this is straightforward, even when dealing with a home office space. There are numerous calculators you can use to determine the right amount, or you can consult a professional.
Certifications, Education, and Licenses
Maintaining and even expanding your professional education and licensure is an essential part of being a successful beauty pro. While continuing your education and keeping your certifications up to date can be a time-consuming and expensive process, it’s worth the investment, and you can write off the cost.
So, if you pay to renew your license or you take educational courses that contribute to your professional development, those expenses are fair game for business tax write-offs. It’s a win-win for you—tax deductions and professional self-improvement!
Cosmetology Liability Insurance
No business is without risk. This is particularly true of the beauty biz. Whether it’s an unavoidable accident that is entirely outside of your control or a mistake that causes some form of harm to your customer, having insurance to cover you is an essential business expense.
It’s no secret that paying a monthly premium can hurt, but the investment is worth the confidence that comes with coverage and protection should you ever need to use it. Plus, you can write off your cosmetology liability insurance premiums, which should help alleviate the sting a bit.
Marketing Campaigns and Materials
Attracting new clients to your salon requires thorough planning and a budget. While your spending on marketing campaigns and materials—both physical and digital—may differ year to year and from other salons, what you do spend can be considered a beauty business tax write-off.
Don’t forget to include digital programs, such as your email marketing tools, in this write-off!
Business Software and Tools
Speaking of marketing tools, did you know you can write off the programs and tools you use to keep your beauty biz running smoothly? From schedule software to payment processors, anything you use to operate your business on a daily (or yearly) basis is fair game.
As a beauty pro, you also use physical tools to perform your services. Whether it’s shears or hair dyes, the tools you rely on to provide your customers with the services they expect qualify as business write-offs.
Products and Supplies
If you keep your retail shelves stocked with products, you have quite the collection of tax write-offs to claim this spring. The same principle applies to things like computers, printer paper, furniture, and cleaning supplies. All of these integral products and supplies that keep your beauty biz ticking can be claimed as deductions, so be thorough!
The best way to maximize your deductions this tax season is to work with a tax professional. That said, the business write-offs above should provide you with a solid foundation for ensuring you receive the best possible deduction this April.
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