Tax Write Offs And Deductions For Estheticians

As an esthetician, you have a unique set of expenses that are integral to your business. These costs can be significant, but the good news is that many of them are tax-deductible. Here's a handy guide to some of the most common tax write-offs and deductions for estheticians.

1. Advertising

Whether it's social media ads, flyers, or billboards, advertising is crucial for getting your business out there. It helps attract new clients and keep your services top of mind. Remember, the cost of advertising your business is fully deductible.

How to write it off: Report it on Schedule C, Box 8.

2. Business Meals

Ever had a meal with a client or potential business partner? Those costs can add up. But don't worry, you can deduct 50% of your business meal expenses. Just make sure to keep your receipts and note the business purpose of the meal.

How to write it off: Report it on Schedule C, Box 24b.

3. Car Insurance & Registration

If you use your car for business purposes, like traveling to clients or picking up supplies, you can deduct the business portion of your car insurance and registration fees. Keep track of your business mileage to calculate the percentage of business use.

How to write it off: Report it on Schedule C, Box 15.

4. Car Maintenance

Regular maintenance is key to keeping your car running smoothly, especially if you're using it for business. You can deduct the cost of oil changes, tire rotations, and other routine maintenance.

How to write it off: Report it on Schedule C, Box 9.

5. Car Purchase & Depreciation

If you've purchased a car primarily for business use, you can deduct the cost over time through depreciation. This can be a significant deduction, especially in the first few years of owning the car.

How to write it off: Report it on Schedule C, Box 13.

6. Continued Education

Keeping up with the latest techniques and trends is important in the beauty industry. If you've taken courses or attended seminars to improve your skills, you can deduct these education expenses.

How to write it off: Report it on Schedule C, Box 27a.

7. Contract Labor

If you hire independent contractors to help with your business, their fees are deductible. This could include anyone from a freelance social media manager to a part-time receptionist.

How to write it off: Report it on Schedule C, Box 11.

8. Creative Assistance

Need help with your website design or logo creation? The cost of hiring a graphic designer or other creative professional can be written off as a business expense.

How to write it off: Report it on Schedule C, Box 11.

9. Decor

Creating a relaxing and inviting atmosphere is key for any esthetician. The cost of decor for your business, like candles, artwork, or furniture, can be deducted.

How to write it off: Report it on Schedule C, Box 27a.

10. Esthetician Supplies

From skincare products to waxing supplies, the cost of the tools of your trade can be deducted. This can be a significant deduction, so keep track of all your supply purchases.

How to write it off: Report it on Schedule C, Box 22.

11. Home Office Furniture

If you work from home, the cost of furniture for your home office can be deducted. This includes items like your desk, chair, and any storage units you use for your business supplies.

How to write it off: Report it on Schedule C, Box 18.

12. Licensing Fees

Keeping your esthetician license current is crucial for your business. The cost of any licensing fees is fully deductible.

How to write it off: Report it on Schedule C, Box 23.

13. Meals While Traveling

If you're traveling for a business conference or to meet with a client, you can deduct 50% of your meal expenses. Just like with business meals at home, keep your receipts and note the business purpose.

How to write it off: Report it on Schedule C, Box 24a.

14. Music Streaming Services

Music can help create a relaxing atmosphere for your clients. If you subscribe to a music streaming service for your business, you can deduct the cost.

How to write it off: Report it on Schedule C, Box 27a.

15. Parking

If you pay for parking while conducting business, those fees are deductible. This could include parking at a client's location or at a business conference.

How to write it off: Report it on Schedule C, Box 27a.

16. Power Bill

If you work from home, you can deduct a portion of your power bill. The amount you can deduct is based on the percentage of your home used for business.

How to write it off: Report it on Form 8829.

17. Property Insurance

If you own your business location, you can deduct the cost of property insurance. If you work from home, you can deduct a portion of your homeowner's insurance.

How to write it off: Report it on Form 8829.

18. Property Repairs

Keeping your business location in top shape is important. You can deduct the cost of repairs to your business property, like fixing a leaky faucet or repainting a room.

How to write it off: Report it on Schedule C, Box 21.

19. Tolls

If you pay tolls while traveling for business, those costs are deductible. Keep track of your toll receipts for your records.

How to write it off: Report it on Schedule C, Box 27a.

20. Transportation

If you travel for business, you can deduct your transportation costs. This includes airfare, train tickets, or the cost of using your personal vehicle.

How to write it off: Report it on Schedule C, Box 24a.

21. Travel Lodging

If you stay overnight while traveling for business, you can deduct the cost of your lodging. This includes hotels, Airbnb rentals, or other accommodations.

How to write it off: Report it on Schedule C, Box 24a.

22. Vehicle Tool Kit

If you need a tool kit for your vehicle for business purposes, you can deduct the cost. This could include tools for emergency repairs or to help load and unload supplies.

How to write it off: Report it on Schedule C, Box 22.

23. Water Bill

If you work from home, you can deduct a portion of your water bill. The amount you can deduct is based on the percentage of your home used for business.

How to write it off: Report it on Form 8829.

24. Website & Hosting Fees

Having a professional website is crucial for any business. The cost of your website design, domain name, and hosting fees are all deductible.

How to write it off: Report it on Schedule C, Box 8.

25. Wi-Fi Bill

If you use Wi-Fi for your business, you can deduct a portion of your Wi-Fi bill. The amount you can deduct is based on the percentage of your home used for business.

How to write it off: Report it on Schedule C, Box 25.