TAX-WRITE OFFS FOR BARBERS & STYLIST
If you're a barber or hairstylist and looking for some common tax deductions for the money you made this year, look no further. Here's some steps to help make the process easier.
A tax deduction can be an expense that you subtract from your earned income to lower the amount of the money you're taxed on and how much you'll owe the Irs.
LICENSES & EDUCATIONAL COURSES
Barbers and stylists are normally required to get licensed to operate in this industry and then you may have to pay fees to maintain these licenses so this expense is a write off. Also, if you’re taking courses throughout the year to perfect your craft and stay up to date with new standards, this can also be a write off for you a barber or stylists could possibly write off the expense of Barber or hair school which can cost $8000-$10,000 talk to a professional to see if you qualify for this.
TOOLS & SUPPLIES
All of the tools and supplies you need to perform a service for a client such as shampoo, combs, clippers, scissors, blow dryers, razors, curling irons, straighteners, hair dye and etc. or right offs also don’t forget if you have a booking system that you pay for to allow clients to make online appointments that’s also a write off too such as..
Just to name a few
HOUSE CALLS & TRAVEL APPOINTMENTS
For example: My barber normally drives a few miles to my office each week to cut my hair because I hate sitting in barbershops. He/She can write off a percentage of their travel expenses such as gas, maintenance car note and etc. And that percentage is based on how much he uses his vehicle to meet clients. So if he/she uses car 30% of the time for a business and 70% for personal, he/she can write off up to 30% of travel expenses as long as he/she has proof and documentation to show the % used for business.
If you have a branded uniform with your logo on it to wear around the shop or salon each day, you can write off that uniform and even the cost of washing or dry cleaning that uniform. Keep in mind that it must be a uniform that can clearly only be used for the shop or salon if it’s every day fashion clothing that can clearly be worn outside the shop or salon, it’s most likely going to to be disallowed by the IRS.
BOOTH RENT & OVERHEAD COST
If you work out of someone else’s shop or salon and pay booth rent that’s a write off. If you have a phone to connect with clients, it’s also a write off. The percentage you can write off for the phone depends if you also use that phone for personal use or if it’s a phone strictly for business use. Merchant services fees such as 2.9% fees from Square to collect money from clients is also a write off. If you have an assistant for clients customer service needs, that’s also a write off.
Having business Insurance as a barber or hairstylist is massively important to protect yourself and business from people who get injured inside your shop or if a client claims you made an error or mistake which is common you can write off the premiums you pay for your business insurance better safe than sorry business insurance could cover your legal fees if sued by a client.
IF YOU OWN THE SHOP
If you own a barbershop or salon you can write off the expense of monthly rent, paying employees, utilities, maintenance in the shop and advertisement cost of bringing clients in the door. Plus additional things as well.