Barber Tax Savings
Barbers & Hairstylists
Why did you become a barber or hairstylist?
It was probably because you’re creative and enjoy helping your clients look their best. We doubt it was because you enjoy filing your self-employment taxes.
Luckily, freelancers like you can save money by organizing your business wisely and becoming aware of all your business deductions. You can save money on many expenses including the cost of supplies and even the many scissors and other tools needed on the job.
The North American Industry Classification System (NAICS) is the standard used by Federal statistical agencies in classifying business establishments for the purpose of collecting, analyzing, and publishing statistical data related to the U.S. business economy.
Barbers and hairstylists are trained a bit differently and traditionally have served a more narrow clientele based on gender. However today, men and women frequent both barbers and hairstylists depending on their own needs and preferences. Barbers and hairstylists both cut, dress, groom, and style hair. In the case of barbers, they may also shave and groom beards. Hairstylists often color hair as well. ~ Source Wikipedia
The most common tax deductions for barbers and hairstlists are listed below.
|Type||Deduction Description||Tax Form|
|Continued Education||Classes you take to enhance your skills after getting your license are tax write-offs.||Sch. C - Box 27a|
|Cosmetic License||Licensing fees in the state where you work are considered a write-off.||Sch. C - Box 23|
|Chair Fees||If you pay a fee for a chair in a salon, you can write it off.||Sch. C - Box 10|
|Appointment Booking Software||If you use software to keep track of appointments, write off the subscription.||Sch. C - Box 18|
|Haircare Tools & Supplies||Scissors, hairdryers, curling irons, shampoo, and other supplies you use are all deductible.||Sch. C - Box 22|
|Inventory & Samples||If you have to keep inventory of products or samples, you can write these off.||Sch. C - Box 36 (COGS)|
|News & Magazine Subscriptons||Newspaper or magazine subscriptions used for work-related research can be written off.||Sch. C - Box 27a|
|Advertising||Print and online advertising costs for your business are considered write-offs.||Sch. C - Box 8|
|Website & Hosting Fees||Squarespace, Wix, GoDaddy, and other website service fees are fully tax-deductible.||Sch. C - Box 8|
|Creative Assistance||If you need to hire an editor, designer, photographer, or other creative pro, write off what you pay them.||Sch. C - Box 11|
|Music Streaming Services||Spotify, Pandora, or other music streaming services you use while with clients are write-offs.||Sch. C - Box 27a|
- Driving for Work -
|Parking||Parking for a meeting downtown, or any other work trip, is tax-deductible!||Sch. C - Box 27a|
|Tolls||A toll while driving to or from a work destination is tax-deductible!||Sch. C - Box 27a|
|Car Purchase & Depreciation||If you buy a new car, you can write off part of the cost every year for five years.||Sch. C - Box 13|
|Vehicle Tool Kit||Flashlights, tire iron, duct tape, and other tools you may need in your vehicle are deductible.||Sch. C - Box 22|
|Car Insurance & Registration||Car insurance monthly fees, registration, even roadside assistance are partially deductible.||Sch. C - Box 15|
|Car Maintenance||Oil changes, repairs, and regular checkups are all tax-deductible if you drive for work.||Sch. C - Box 9|
- Work Meetings -
|Business Meals||If you discuss work with a coworker, mentor, client, or prospective client, it's a write-off!||Sch. C - Box 24b|
- Traveling for Work -
|Transportation||Planes, trains, and car rentals are all work-related travel costs that can be written off.||Sch. C - Box 24a|
|Travel Lodging||When you travel for work, lodging expenses such as hotel rooms or Airbnb are write offs.||Sch. C - Box 24a|
|Meals While Traveling||When you're traveling for work, all meals are tax-deductible. Even takeout!||Sch. C - Box 24a|
- Working from Home -
|Home Office Furniture||A desk, chairs, lamps, and other home office necessities are all tax write-offs.||Sch. C - Box 18|
|Property Repairs||You can write off up to $2,500 for individual repairs to your property.||Sch. C - Box 21|
|Power Bill||Gotta keep the lights on in your home office! A portion of your electricity bill counts.||Form 8829|
|Property Insurance||Whether it's rental or homeowners insurance, you can write off a portion through your home office deduction.||Form 8829|
|Water Bill||It'd be hard to work in an office without running water, huh? You water bill counts.||Form 8829|
|Wi-Fi Bill||Your Comcast bill is a tax write-off. You need internet to do your job!||Sch. C - Box 25|