Cosmetology tax write offs

Do you need a W2 if you are a self-employed stylist?

At tax time, employees should receive a Form W-2

This shows how much you earned during the year, and how much of your income was withheld for taxes

A self-employed (or independent) stylist typically rents a workstation in a salon or sees clients in an at-home setting

Meticulous recordkeeping is crucial for maximizing hair stylist tax deductions

Save receipts for all purchases and track mileage logs for business travel

Take pictures of receipts or use apps to scan and organize them

Calculate the percentage of cell phone use for business vs

personal

Maintain an expense tracking spreadsheet

The IRS treats these differently, in the fact that you can write off up to $5,000 of your taxes, with the rest being depreciated over 15 years

Your CPA (Certified Public Accountant or trusted Tax Advisor can go into more detail on depreciation with you)

Here are some of the most important ones to think about when it comes time to file your lash tech taxes:

Equipment. Tweezers, extension tools, glue, remover, primer, the extensions themselves, chairs, and any other equipment or supplies for your lash business may qualify as tax write-offs.
Rent. If you’re renting a space for your business, the rent you pay each month very likely will count as a cosmetologist tax deduction.
Advertising. ...
Licensing fees. ...
Improvements made to your business. ...
Business insurance. ...

,When preparing for the tax season