Working as a hair stylist is a great career to go with. You get to work with your hands all day, meet a lot of new people, and do something that you really enjoy doing day in and day out. Some stylists choose to work with another professional in order to save on the costs and just make a paycheck each year. But others are happier running their own businesses and setting up their own booth.
While this is a great way to make some money on your own business, you need to realize that it can be really expensive, just like with any type of business that you could start. And just like other businesses, you are going to be able to deduct some of the costs of starting and running your business on your tax return. If you are a hair stylist and would like to learn more about some of the deductions that you are going to qualify for, make sure to contact your tax professional to help you out this year.
Business Expenses
The first kind of expense that you are going to be able to deduct when it comes to your tax return is the business expenses. You can get a deduction on the professional license that it took to be able to open a hair styling booth as well as the business license in order to open your own business. Both of these are tax deductible so you can save money.
There are a lot of different salon expenses that you can deduct, including all of those that are considered necessary to run your salon. These can include things like towels, trash, water, television for the customers to watch, and even electricity. If you pay some of the salary for the receptionist, you can deduct that amount as well as any insurance that you pay any employees.
If you are uncertain about which expenses you are going to be able to deduct on your tax return at the end of the year, make sure to talk to your tax professional. They will be able to look over your business and all your receipts and figure out which deductions are going to work out the best for your business to save you money.
Education
Most of those who are in the hair styling world are going to need to keep current on the newest products and the latest trends. You may have to go to classes, conventions, trade shows, and workshops to learn this information and this can get expensive over time. The cost for going to these things is deductible and you can also deduct the food and hotel costs as well as the mileage, as long as you take care to keep all of the receipts for this information to prove that you actually went. Some other things that you can use is video classes, online applications, DVDs, color books, and magazine subscriptions, whether they are used for your education or to keep the customers occupied while waiting for you to do their hair.
These are just a few of the deductions that you are going to be able to claim when it comes to being a hair stylist. Take a look at some of your expenses with a tax professional and see what you are able to deduct at the end of the year for your personal business.
Marketing
When it comes to hairstyling, many of your clients are going to come from word of mouth. If you do a good job on one client, they are more likely to talk to other friends and family and tell them to go to you. But there are other marketing things that you can do that can cost a bit and will be deductible on your tax return. These things could include any items that have your name and address on them, such as bottles, pens, combs, calendars, and so on. If you make a website, brochure, or advertise in the newspaper, you can include these as marketing as well. These costs can add up, but you do need to make sure that you are keeping all the receipts before making them deduction on the tax return.
Other Things
Some of the supplies that you need to actually run your business can be counted as deductions. For example, curling irons, scissors, diffusors, blow dryers, brushes, combs, and so on are all deductible as long as you keep the right receipts for them in your business. Pretty much anything that you use to run your business, that is considered necessary to run a business like yours, and which you bought in the year that you are claiming them can be used as a deduction on your tax return. Make sure to keep some good receipts and talk to your tax advisor if you are worried about claiming something on your tax return so you make the right decisions during your tax season.
Running your own business can be a great experience in your whole life. You get to be the boss and do something that you love to do. But there are a lot of different costs that come with running a business and often this can start to eat into your profits. With the right tax professional, you will be able to find all the deductions that you qualify for to save more money than ever before.
Kenneth M Perkins CPA/PFS