Salon Taxes, Deductions, Software and Must-Have Resources for US Beauty Pros
Salon Taxes, Deductions, Software and Must-Have Resources for US Beauty Pros
No book or software program can substitute for the advice of a tax professional, but that does not mean you shouldn’t do all you can to educate yourself about the taxes that apply to your salon business. Here are some resources that can help.
Chances are you didn’t get into the beauty industry because you wanted to become a salon tax expert. But you probably didn’t get into the beauty industry to become a business owner, entrepreneur, salon marketing expert, scheduler, facility cleaner, hiring and recruiting expert – or any of the other roles that you found were yours as a salon owner or independent beauty professional.
Educating yourself about salon taxes? It just goes with the turf.
Like it or not, it is in your best interest to educate yourself about all of the aspects needed to run a business or make money as a beauty pro, and that means learning about the taxes that apply, the deductions that might legally reduce your salon tax burden, and so on. With that in mind, here are some resources, books and software you can turn to during tax season.
Salon Taxes and Salon Tax Deductions
Best practice: Consult a tax professional. Even if you prepare your own taxes, paying someone who knows the ins and outs of salon taxes and the tax code could save you a significant amount of money. It will also help to ensure that your taxes are prepared accurately and that you have not missed any of the salon tax deduction that might reduce your tax bill.
2016 Annual Tax Mess Organizer For Nail Techs, Manicurists & Salon Owners
This is the only book I found specifically for beauty professionals on the topic of doing salon taxes, either as a salon owner or an independent beauty pro (booth renter, salon suite owner, nail tech, skin care esthetician, massage therapist, etc.) The Annual Tax Mess Organizer For Nail Techs, Manicurists & Salon Owners offers “Help for self-employed individuals who did not keep itemized income & expense records during the business year.”
Get Free Salon Tax Help from the IRS
There’s no surer way to stay out of trouble than consulting the government agency responsible for interpreting and applying the tax code. At https://www.irs.gov/Help-&-Resources you will find help and resources with links to tax forms and publications, filing instructions, and even an interactive tax assistant that can help you prepare your 2015 salon tax return.
475 Potential Salon Tax Deductions
Bernard Kamoroff is a C.P.A. (Certified Public Accountant) who has compiled a book titled 475 Tax Deductions for Businesses and Self-Employed Individuals: An A-to-Z Guide to Hundreds of Tax Write-Offs which lists hundreds of potential salon tax deductions for businesses and self-employed individuals. This book could be an invaluable reference during tax season for both salon owners and salon professionals such as booth renters, salon suite franchisees and others who work as independent contracts in the beauty industry.
100 Page Tax Primer for Salon Owners or Indies
If you’re overwhelmed by the thought of sifting through 475 tax deductions or the IRS site, you can start your education with an easy to read 100 page tax primer written just for independent contractors and sole proprietors. Bonus, if you’re an Amazon KindleUnlimited member you can read this one for free.
Salon Taxes and Bookkeeping
Another highly-reviewed resource salon owners and independent beauty pros can turn to at tax time is Small Time Operator: How to Start Your Own Business, Keep Your Books, Pay Your Taxes, and Stay Out of Trouble – also by C.P.A. Bernard Kamoroff. This book would be a good read during tax season but could be even more helpful as a book to be read by those who are thinking about opening a new salon business, since it also covers topics like finding a good location, writing a business plan and getting the permits and licenses needed.
Salon Tax Software
If you are going to prepare and file your own business taxes, TurboTax has two products you can use to do your 2015 salon tax return.
TurboTax Home and Business 2015 – Federal + State + Fed Efile allows you to import data from QuickBooks and Quicken to speed up the process and has built-in guidance that can help you maximize your salon tax savings. The program also enables you to generate W-2 and 1099 forms you might need for employees or independent contractors who worked with you in 2015. This version is appropriate for salon tax filers who are sole proprietors, consultants or contractors who also receive income from a side job or who are self-employed. The program enables you to file business and personal taxes together.
TurboTax Business 2015 – Federal + Fed Efile is the next step up and is suitable for salon tax filers who own an S Corp, partnership, C Corp or multi-owner LLC. Not only does TurboTax Business have built-in guidance to help you maximize savings, it also includes industry-specific tax deductions that might apply. Like the Home and Business version, users can generate W-2 statements for employees and 1099 statements for contractors and easily import data from programs like QuickBooks and Quicken to streamline the process.
Commonly Missed Business Deductions
Last year I wrote a list of eleven commonly overlooked small business tax deductions which you’ll find on my client’s site at dbsquaredinc.com. Some of the items from this list of deductions that small business owners might miss include things like subscriptions – yes, that includes all the magazines you put in client’s hands while they are under the dryer – mileage (like all those trips to the salon supplies distributor’s store), education and training (cost of the classes that every beauty pro takes to develop their technical and business acumen), health insurance premiums and more.
Read: 11 Commonly Overlooked Small Business Tax Deductions at DBSquaredInc.com
***
Get Client Rules: 2016 Marketing Calendar for Salon and Spa and get 12 months of marketing ideas for growing a salon business including the salon marketing strategies you need to attract new clients in today’s digital salon marketing landscape.
Perfect for salon owners but also easy to implement for any beauty industry professional – from booth renters and hair dressers to estheticians, nail techs, salon suite franchisees and anyone who wants to know how to grow salon clientele and keep clients engaged for the long haul.
