As a hair stylist, you can save hundreds (even thousands!) of dollars at tax time by deducting business expenses. That’s because every time you write off an expense, you lower your taxable income — putting the money you spend on your business back in your pocket.
When it comes to deducting business expenses, there are certain regulations you need to follow:
If you’re a hair stylist, here are 14 deductible expenses you should keep track of throughout the year.
1. Mileage: Keep track of all your business-related trips. While there are lots of ways to do this (like taking odometer readings before and after trips), the easiest way is to use an app like Stride that records mileage while you drive:
If you choose to take the standard mileage deduction, keep in mind that you cannot deduct individual vehicle expenses like gas, oil changes, car repairs, and car insurance.
2. Home office: The IRS keeps a close eye on this deduction, so make sure you only write off your office if it’s a dedicated home workspace used solely and regularly for your hair business.
Have a home office? You can write it off with either:
3. Professional development: You can write off any classes (e.g. for coloring techniques), seminars, conventions, and hair publications (e.g. that highlight new styles or methods) that help you improve your business.
4. Tools and supplies: Don’t forget to deduct the cost of any supplies — think scissors, shampoo, blow dryers, smocks, sinks, mirrors, styling chairs, foils, towels, and more — that you use for your business.
5. Cell phone bills: Do you use your phone exclusively for business? You can fully deduct related expenses (including the phone purchase and monthly bills). If you also use your phone for personal reasons, you should only deduct the portion used for business. The best way to do this is to calculate what percentage of your calls were work-related and then claim that percentage of your bill.
6. Business cards: Designing and printing business cards is a deductible marketing expense.
7. Printing and copying: Keep your receipt anytime you print or copy work-related materials like marketing flyers, brochures, and office records. Print jobs are deductible.
8. Advertising: When you invest in promoting your business, keep track of how much you spend. Online ads, signs, print ads, videos, website hosting fees, and more are all deductible.
9. Promotional goodies: If you give away items like hair brushes or pens to help promote your business, keep the receipts — promo goodies are deductible!
10. Parking: Anytime you have to pay for parking while you’re working, save your receipts; these expenses are deductible. Unfortunately, this doesn’t apply to parking tickets or traffic violations, so drive safely.
11. Tolls: Any toll fees you pay while working are tax-deductible as long as they’re not already being reimbursed.
12. Licenses: There are certain licenses you are required to have to do your job, including business licenses. These are all deductible (even license renewal fees).
13. Hair stylist insurance: If you buy insurance to protect your business from claims, you can deduct your premiums.
14. Health insurance: As long as you don’t get health insurance via a spouse or employer, you can deduct 100 percent of your monthly premiums. Keep in mind that if you receive a government subsidy, you can only write off the amount you pay each month (not the original price of your plan). Note: Your health insurance premiums are taken as a personal deduction on Form 1040, NOT deducted as a business expense.
The IRS deems some common expenses as non-deductible. These include:
Have you tried our free expense tracker?
Stride is an app that makes it simpler than ever to find deductible expenses, take pictures of receipts, and automatically record business mileage.