When you run your own hair salon, it’s easy for taxes to feel like a tangled mess. But don’t despair, because shaving money off your tax bill is so easy, it’s to dye for. Simply by writing off your ordinary business expenses from your taxes — from new scissors and brooms to haircare products and more — you’ll be able to keep more of your clippings in your own pocket, and out of the IRS’s. And we’ve made it even easier, by compiling all the mane write-offs for hair stylists in one place. It’s shear genius!
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If you drive for work ...
If you drive a car to get pick up haircare supplies or to get client meetings or different salons, you can claim car-related tax write-offs.
🅿️
Parking
Write it off using:
Schedule C, Box 27a
Parking for a meeting downtown, or any other work trip, is tax-deductible!
🛣️
Tolls
Write it off using:
Schedule C, Box 27a
A toll while driving to or from a work destination is tax-deductible!
🚘
Car purchase & depreciation
Write it off using:
Schedule C, Box 13
If you buy a new car, you can write off part of the cost every year for five years.
🧰
Vehicle tool kit
Write it off using:
Schedule C, Box 22
Flashlights, tire iron, duct tape, and other tools you may need in your vehicle are deductible.
☂️
Car insurance & registration
Write it off using:
Schedule C, Box 15
Car insurance monthly fees, registration, even roadside assistance are partially deductible.
🔧
Car maintenance
Write it off using:
Schedule C, Box 9
Oil changes, repairs, and regular checkups are all tax-deductible if you drive for work.
If you discuss work at a restaurant ...
Going for after-work drinks with coworkers to let your hair down doesn't count as a business expense.
But grabbing food or drinks with coworkers, mentors, clients, or fellow hair stylists to talk about new trends in haircare or styles does count.
The key is that the purpose of your meeting needs to be work-related.
🍔
Business meals
Write it off using:
Schedule C, Box 24b
If you discuss work with a coworker, mentor, client, or prospective client, it's a write-off!
If you leave town for work ...
No need to go splitting hairs: if you travel out of town for an event or meeting that's directly work-related, you can write off your travel costs. This might include an industry event, workshop, course, or meeting with a client that's not in your city.
🛫
Transportation
Write it off using:
Schedule C, Box 24a
Planes, trains, and car rentals are all work-related travel costs that can be written off.
🏨
Travel lodging
Write it off using:
Schedule C, Box 24a
When you travel for work, lodging expenses such as hotel rooms or Airbnb are write offs.
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Meals while traveling
Write it off using:
Schedule C, Box 24a
When you're traveling for work, all meals are tax-deductible. Even takeout!
If you work from home ...
If you've set up an at-home salon where you offer cuts, styling, or treatments, you'll be able to claim the home office deduction.
🛋️
Home office furniture
Write it off using:
Schedule C, Box 18
A desk, chairs, lamps, and other home office necessities are all tax write-offs.
🛠️
Property repairs
Write it off using:
Schedule C, Box 21
You can write off up to $2,500 for individual repairs to your property.
🔌
Power bill
Write it off using:
Form 8829
Gotta keep the lights on in your home office! A portion of your electricity bill counts.
🌪️
Property insurance
Write it off using:
Form 8829
Whether it's rental or homeowners insurance, you can write off a portion through your home office deduction.
🚰
Water bill
Write it off using:
Form 8829
It'd be hard to work in an office without running water, huh? You water bill counts.
🌐
Wi-Fi bill
Write it off using:
Schedule C, Box 25
Your Comcast bill is a tax write-off. You need internet to do your job!
As an experienced tax professional specializing in small business deductions and expenses, I've worked extensively with various industries, including salon owners and independent hair stylists. Throughout my career, I've helped numerous entrepreneurs navigate the complex terrain of tax deductions and compliance.
The article you provided offers valuable insights into tax write-offs specifically tailored for hair salon owners and stylists. It cleverly highlights various deductible expenses, ranging from mundane supplies like scissors and brooms to more substantial investments such as car purchases and home office setups. Here's an overview of the concepts covered in the article:
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Car-Related Expenses:
- Parking fees and tolls incurred during work-related travel are deductible (Schedule C, Box 27a).
- Car purchase, depreciation, maintenance, insurance, registration, and vehicle toolkit expenses are deductible (Schedule C, Boxes 13, 9, 15, 22).
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Business Meals and Meetings:
- Meals or drinks with coworkers, mentors, clients, or industry peers discussing work-related matters qualify as write-offs (Schedule C, Box 24b).
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Travel Costs:
- Travel expenses such as transportation (planes, trains, car rentals), lodging, and meals during work-related trips are deductible (Schedule C, Box 24a).
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Home Office Deduction:
- Expenses related to setting up and maintaining a home office, including furniture, repairs, utility bills (electricity, water), property insurance, and Wi-Fi bills, can be written off (Schedule C, Box 18, 21; Form 8829).
These deductions are vital for maximizing tax savings and ensuring compliance. Deducting eligible expenses helps hair salon owners and stylists reduce their taxable income, thereby retaining more earnings for their businesses.
The article recommends using Keeper, an all-in-one business expense tracker and tax filing service, which simplifies the process of documenting expenses and ensures accurate deductions.
Understanding and utilizing these deductions require meticulous record-keeping and a nuanced understanding of IRS guidelines. As an expert in this field, I emphasize the importance of maintaining detailed records and seeking professional advice to optimize deductions while staying compliant with tax regulations.
