Every small business owner’s favorite season is approaching quickly. No, it’s not spring with its vibrant blossoms and renewed spirit. It’s not summer with its balmy breezes and road trip adventures.
It’s tax season, so put away the spring cleaning supplies and summer shorts and reach for your documents.
In all seriousness, tax season is rarely something people look forward to. Sure, you may get a refund, but the hassle and stress leading up to that brief moment of levity can be challenging, especially as a barber whose taxes can be a little funky.
One way to prepare for tax season and ensure you’re keeping as much of your hard-earned money as possible is to familiarize yourself with common tax write-offs for barbers. Read on to destress your tax season while (legally) padding your pockets.
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The Best Tax Write-Offs for Barbers
You’re an expert when it comes to haircuts, trends, and wielding a pair of shears. When it comes to taxes, however, it’s not unusual to feel a little overwhelmed. Not only do they tend to be confusing, but the time and effort required to do them properly is a huge distraction from your work, passion, and daily life.
Luckily, barbers can write off quite a bit on their taxes thanks to the nature of their work.
Rent, Utilities, and Shop Expenses
Whether you own the shop or rent a space inside someone else’s building, the payment you’re making is a tax write-off. The opportunities to write expenses off do not stop with your monthly rent payments, either. They are just the tip of the iceberg.
Your utility payments and maintenance expenses are more shop-related items that can be written off. If something is related to the operation of your shop, chances are it can be written off legitimately. When in doubt, ask an expert–you may find even more shop-related expenses that qualify!
Certifications, Education, and Licenses
Staying on top of your game as a barber often requires continued education in the form of courses and classes. Then, you have to make sure you are maintaining your certifications and licenses in order to legally practice barbering in your location. These expenses, while necessary, can add up to be quite costly.
Thankfully, barbering-related educational courses, certifications, and licenses are prime expenses to write off on your taxes. They are investments in your craft and business, making them integral to your success as a barber. Rest easy knowing that the upfront cost of investing in your future can be a solid tax write-off.
Barber Insurance
All your skill, hard work, and expertise can help you build your dream barbering business. You know the time, effort, and dedication it takes to succeed in this competitive industry, which means you also know how important it is to protect what you’ve achieved.
Barber insurance does just that. It protects you, your business, and those who rely on you from the legal and financial fallout of an accident or mistake. Sure, barbering insurance is an additional expense, but it is worth the investment to ensure you are protected in the worst-case scenario.
Better still, your insurance premium payments can be written off. You can feel protected while also benefiting during tax season–now that’s a win-win!
Physical and Digital Tools
As a barber, “the tools of the trade” is more than just a saying–it’s reality. You rely on your barbering tools every single time a client walks into your barber shop. While some have impressive longevity–clippers, combs, and sheers, for example–it is not unusual to pay for maintenance to keep them at their best. Sometimes, you even have to replace high-quality tools with new and better ones. This can be very expensive.
You don’t limit yourself to tangible tools, either. Your shop most likely relies on digital tools to manage your finances, book and schedule appointments, and market your business. These tools can also be costly, whether they are a one-time investment or a recurring monthly expense.
Your tools, whether physical or digital, are essential to the operation of your barbering business. As such, they can be used as tax write-offs, so don’t forget them this tax season!
Products and Supplies
The products and supplies you stock and use are essential to your business. You use hair products and dyes frequently, keep the shelves stocked with products for your customers to purchase and use at home, and rely on consumables like towels and cleaning agents to maintain an orderly shop. All of these products and supplies require consistent replenishment to remain in date and in stock.
As you spend the money to ensure your shop has what it needs to function at its best, keep in mind that these expenses are tax write-offs! Be sure to document your purchases so you don’t forget any potential tax write-off opportunities.
It’s not uncommon to dread tax season, but it doesn’t have to be the stuff of nightmares. With a little knowledge and some preparation, you can make this tax season more streamlined while maximizing your write-offs. We encourage you to speak to a tax professional for more thorough information. They can help you finish your taxes with ease.
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