For many, the month of January is seen as a period of reset. It’s a great time to reflect on your previous year and set new goals for the upcoming year! While January is a month of opportunity, it’s also a time of year for everyone’s not-so-favorite task…taxes.
A lot of independent estheticians and salon owners work hard on bookkeeping all year to keep their business finances in order and we here at Nova wanted to provide some information on tax write-offs as a salon owner.
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When is Tax Season?
According to the IRS, this year taxes are eligible for filing on January 23, 2023. The taxes filed are a report of the taxes paid from the previous financial year. The deadline for filing taxes is April 18, 2023.
Salon Owner/Esthetician Tax Write-Offs
As small or independent business owners, estheticians have a lot of responsibilities when it comes to maximizing profits! One way to maximize profits is by writing off business expenses accumulated throughout the year.
Estheticians’ deductions that can be claimed on taxes include a wide range of items, everything from equipment to start up-expenses. If you just opened your business within the tax year, be sure to be diligent about everything you did to get it up and running.
A good list of things that can be considered tax write-offs for estheticians can be found here.
How to Calculate Tax Write-Offs
Figuring out how many things you can potentially write off can be a very overwhelming task! One suggestion when calculating tax write-offs that may be helpful is to start by making a list of everything you can see in your salon that you use regularly.
You want to make sure that the list includes things you purchased within the last year. For example, maybe you just bought a new esthetician bed or possibly upgraded to the best luxury hard wax available before the year ended.
After you make a note of everything new, finding the receipts in your email or in your amazon history is a good way to start keeping track of potential write-offs and how much they cost.
If you're already a loyal Nova user, we make it quick and easy to find your order history and view your receipts! All you need to do is log in to your account, and you'll be able to see your full order history. Each individual order contains it's corresponding receipt.
Don’t limit yourself to just thinking about your products, however! Tax write-offs can also include things like gas mileage if you made house calls. Going through your house call history and calculating how many miles you drove is a great way to get a deduction.
Tax season may be very overwhelming, but as an esthetician it’s important to remember that it’s a chance to reinvest into your business. Depending on how recently things were purchased, deductions can be what end up bringing you a lot of returnable income after taxes are filed.