What beauty pros can usually deduct (and what to keep as proof)
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
| Category | Examples |
|---|---|
| Space | Booth or suite rent, utilities you pay for the space, cleaning and laundry |
| Products and supplies | Products used on clients, disposables, towels, linens, gloves |
| Tools and equipment | Shears, lamps, beds, devices (large purchases may be spread over several years) |
| Training and licenses | Continuing education, license renewals, state board fees, trade shows |
| Insurance | Liability insurance for your business |
| Marketing | Website, ads, business cards, professional photos |
| Software and fees | Booking software, bookkeeping apps, card processing fees |
| Phone and internet | The business-use share |
| Travel | Mileage between work locations or to buy supplies (not your regular commute) |
| Professional help | Accountant, 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.
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.