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What beauty pros can usually deduct (and what to keep as proof)

General information for the United States. Not tax, legal, or financial advice.

If you are self-employed, you generally pay tax on profit, which is income minus business expenses. Expenses that are ordinary and necessary for your work can usually be deducted. Here are the common ones for beauty pros.

Common deductions

CategoryExamples
SpaceBooth or suite rent, utilities you pay for the space, cleaning and laundry
Products and suppliesProducts used on clients, disposables, towels, linens, gloves
Tools and equipmentShears, lamps, beds, devices (large purchases may be spread over several years)
Training and licensesContinuing education, license renewals, state board fees, trade shows
InsuranceLiability insurance for your business
MarketingWebsite, ads, business cards, professional photos
Software and feesBooking software, bookkeeping apps, card processing fees
Phone and internetThe business-use share
TravelMileage between work locations or to buy supplies (not your regular commute)
Professional helpAccountant, bookkeeper, or attorney fees

Watch-outs

  • Personal costs are not deductible. Your own hair, skin, and nails are generally treated as personal, even if they help your business.
  • Clothing counts only if it is required and not suitable for everyday wear, like a branded uniform.
  • Meals are generally only partly deductible and need a business purpose.
  • Paying yourself is not an expense. Money you move to your personal account is a draw.
  • Tips are income. Keep a log and report them.

Home office

If you use part of your home regularly and exclusively for the administrative side of your business, you may be able to deduct it. A simplified method allows $5 per square foot, up to 300 square feet.

Records to keep

  • Receipts, invoices, and bank and card statements.
  • A mileage log with date, place, and purpose.
  • A tip log.

The IRS can generally look back three years after you file, and longer in some cases. Many people keep records for seven years to be safe. Photographing receipts the day you get them is the easiest habit to build.

What to do next

Use the category list in the starter kit so every receipt has a home from day one.

Good to know

This is general education, not tax or legal advice. Rules change and every situation is different. A licensed tax professional can tell you what applies to you.

Missing receipts for the year?

We can sort the pile into categories and show you what you spent.

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