21 Hairstylist Write Offs You Shouldn’t Miss
- gallowaytax
- 6 days ago
- 4 min read
As a hairstylist, managing your finances is just as important as perfecting your techniques. One major, yet often overlooked aspect is tax write-offs. Knowing what you can deduct could lead to impressive savings. By grasping hairstylist write-offs, you can handle salon expenses effectively and boost your profits.
In this blog post, you’ll learn about 21 tax deductions specific to hairstylists that can make a real difference at tax season. Let’s take a closer look!
1. Hairstylist Write Offs for Hair Products
Purchasing shampoos, conditioners, and styling products is essential for your job. For instance, if you spend $50 a month on hair color and $30 on styling gel, that's $960 you can write off each year. These expenses are crucial and qualify as deductions.
2. Salon Equipment
Investing in chairs, mirrors, and tools can be costly. If a salon chair costs $800 and you purchase one every five years, that's $160 per year, which you can deduct. These items are fundamental to your services and eligible for deductions.
3. Marketing Materials
Creating business cards or promotional flyers? All these costs are deductible. If you spend $200 a year on marketing materials, you can write off that full amount and enhance your visibility in the market.
4. Education and Training
In the ever-evolving beauty industry, continuous education is key. If you attend a $500 workshop, that entire amount can be deducted. Investing in your skills not only helps you grow but also reduces your tax burden.
5. Travel Expenses
Traveling to client locations or attending trade shows can be significant. If you travel 50 miles for a client and spend $20 on gas, those costs can be written off. Keep a detailed record of these expenses.
6. Home Office Deduction
Running your hairstyling business from home? You might qualify for a home office deduction. If your home office constitutes 15% of your home’s area, you could deduct a portion of your rent, utilities, and internet costs.
7. Utilities
For salon owners and booth renters, utility costs can add up quickly. If you spend $300 a month on electricity and water, that totals $3,600 annually, all of which may be deductible.
8. Insurance Premiums
Professional liability and business insurance are essential. For instance, if you pay $600 annually for insurance, don’t overlook this deduction. It protects you and reduces your taxable income.
9. Online Booking Software
If you rely on booking platforms like Acuity or Vagaro, the fees for these services are often deductible. If you spend $30 a month, that’s $360 each year written off, allowing you to focus on your clients.
10. Client Gifts
Gifting your clients can help build loyalty. If you spend $50 a year on client gifts, these expenses could be eligible for write-off, showing you care while also benefiting your taxes.
11. Licensing Fees
Renewing your cosmetology license is mandatory. If your renewal fee is $100, that expense is crucial. Keep proof of the payment as this is a necessary write-off.
12. Rent or Lease Payments
Renting a booth in a salon? The cost of $500 a month means you can write off $6,000 a year as a legitimate business expense. Always keep your rental agreements and payments.
13. Depreciation
Consider depreciation for high-value equipment like chairs and tools. If you purchase a styling tool for $1,200, you can depreciate that cost over its estimated useful life and reduce your taxable income gradually.
14. Cleaning Products
A clean salon is vital for business. If you spend $100 a year on cleaning supplies, that cost can also be deducted, ensuring your workspace remains professional and inviting.
15. Website Expenses
Investing in your online presence is important. If you spend $200 a year running your professional website, you can deduct that amount. A strong website can attract new clients and enhance your credibility.
16. Business Travel
Traveling for industry events or training may result in write-offs for transportation or accommodation. If you attend a conference and spend $300 on travel, keep your receipts for potential deductions.
17. Subscriptions
Subscriptions to beauty magazines or online platforms can be deducted as well. If your annual subscriptions total $150, that’s another expense you can write off.
18. Networking Events
Expenses from networking events can also be claimed. If you spend $75 attending a local beauty industry mixer, that deduction can aid in growing your clientele while reducing your taxes.
19. Professional Memberships
Joining associations can enhance your skills and business credibility. If your membership costs $100 a year, it’s a small price for potentially big benefits, plus it’s fully deductible.
20. Advertising Costs
Any expense on advertising, whether online or through print, can reduce your taxable income. If you spend $500 on ads, you can claim that entire amount to improve your marketing outreach.
21. Equipment Maintenance
Regular servicing of your tools is crucial. If you spend $200 a year on maintenance, track those costs and include them as write-offs. This ensures that your equipment is always at its best for clients.
Maximizing Your Deductions
Understanding hairstylist write-offs is vital for boosting your profits while managing a salon. Each deduction listed above has the potential to save you money on taxes. Make sure you keep accurate records and consult a tax professional to fully leverage these opportunities. With this knowledge, you can focus more on your craft and confidently navigate your financial landscape.