Tax season is upon us, and if you’re like us, it is not the most wonderful time of the year. We may go as far as to say that tax season is on our list of dislikes. Strong words, right?

While very few people enjoy doing their taxes, we have good news–with a little knowledge and a touch of confidence, you can conquer your taxes for beauty professionals like it’s nothing. All you need is some guidance, and we’re here to give it to you.

Taxes for Beauty Professionals: Everything You Need to Know

With a reputation for being stressful and time-consuming, tax season is rarely a walk in the park–especially as a beauty pro with a lot on your plate. From providing your clients with the services they crave to running your beauty biz (and everything that comes with it), taxes are the last thing you need to add to your to-do list.

We’re here to alleviate any feelings of impending doom you might have, streamline your tax season, and help you reclaim your time (and sanity). All you have to do is keep reading.

Know Your Beauty Pro Tax Status

The taxes you pay, forms you need to fill out, and documents you must submit are all linked to your tax status as a beauty pro. In other words, your employment type determines nearly everything about your tax season.

Independent contractors file differently than employees, limited liability corporations (LLCs) have their own rules, and so on. As such, being sure of your employment status is a vital piece of information you must know before you begin the tax season process.

Luckily, determining your tax classification is easy. So, do a bit of research, consult a tax professional if you want to be extra cautious, and file with confidence knowing that you are submitting the correct documents and following the right rules.

Track Your Beauty Biz Income and Expenses

Nothing is quite as frustrating during tax season as tracking down your income and expenses from the previous year. Not only is this time-consuming, but it also leaves you prone to mistakes (and the potential consequences that follow).

Rather than playing hide-and-seek with your receipts, cash flow documentation, and other important files, keep them organized year-round. That way, you know exactly where they are when you need them during tax season–talk about a relief.

There are even accounting software programs that allow you to automate your bookkeeping. Track your income from all sources, classify your different types of expenses, and feel confident in the accuracy of your numbers by utilizing one of these tools for your business operations.

In addition to streamlining taxes for beauty professionals, tracking your income and expenses provides you with valuable insights into your business. From where you spent the most money to which aspects of your business were profitable (or not), what you learn along the way can help you become more efficient and continue growing your beauty biz.

Make the Most of Your Tax Deductions

No one likes to see money leave their bank account for taxes, especially small businesses and entrepreneurs. For those paying taxes for beauty professionals, limiting their taxable income is one of the best ways to reduce their tax burden.

Claiming deductions can drastically reduce your taxable income and the subsequent taxes you owe, but you have to be cautious and informed when writing off expenses. Only certain things are eligible for deduction–such as your shop equipment and beauty professional insurance–so while you should do your best to maximize your write-offs, you need to be careful not to claim anything that doesn’t qualify.

You should also track your expenses and keep your receipts in order to prove that your deductions are legitimate. Hopefully, you won’t need them, but if the IRS comes knocking, having those receipts can save you from a stressful experience.

File Your Taxes for Beauty Professionals on Time

Staying organized and keeping accurate records help you file your taxes correctly, but all that hard work can go to waste if you miss the deadline. While you’ll still be able to file your taxes late, you will be subjected to penalties and fees, and no one wants that!

The first step to avoid this unwelcome outcome is to know the tax deadlines. That way, you can plan ahead, get all of your information ready, and submit your taxes on time. If you suspect that you may not be prepared to file your taxes on time, you can also file for an extension.

If you’re feeling the crunch of tax season, you’ve come to the right place. Equipped with the foundational knowledge above, you can file your taxes for beauty professionals with confidence. If you want more assistance, it is always better to work with a tax professional than go at it alone!

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