Hair stylists earn money providing services to a client base that is developed over time. As a hair stylist, you may have a multitude of deductions open to you, depending on your business structure and whether you work for a company, as a business owner, or as a freelancer.
Cost of Supplies
Hair dressers need various hair supplies like mousse, hairspray, shampoo, towels and hair coloring supplies. If your employer does not reimburse the cost of your supplies or does not pay for them as part of your employment, then you may deduct these costs on your tax return. If you’re an employee, take the deduction under schedule A of your 1040. If you’re an independent contractor, then use schedule C to take this deduction.
The tools you use in your job may include scissors, hair dryers and clippers. These tools may not be paid for by your salon. This is especially true if you’re an independent contractor. If these supplies aren’t reimbursed or paid for directly by your employer, deduct these costs on schedule A if you’re an employee, or schedule C if you’re an independent contractor.
You may be required to rent space at a salon to perform your business. Employees may not have to worry about this, but if you’re an independent contractor, your rent is an expense you may deduct on your tax return. Deduct this amount on schedule C of your 1040 with your other expenses.
You must be licensed to cut hair in most states. These licensing fees are generally paid for by you, and may or may not be reimbursed. If your employer does not issue a reimbursement of your licensing fee, you may deduct this amount from your taxes. Employees may deduct this on schedule A while independent contractors deduct this amount on schedule C of the 1040 tax return..