It’s tax time. Having some tax insight can help you make the most of your earnings by applying the right deductions and credits. Here are some useful tips as you prepare to file by Tax Day.
Organization is Key
The first step with getting ready to file your taxes is to keep your business documentation in order. Save the receipts related to your business expenses. Use business management tools such as a scheduling app to easily track income from your salon business . Tracking your income and expenses as you go makes filing your taxes easier!
Take Advantage of Tax Deductions
The money you spend on your salon business to make money can serve as valuable deductions. Your salon suite start up costs for items such as equipment, furniture, and products can reduce your tax liability. You can also claim other expenses associated with operating your business like advertising, website costs, rental payments, and supplies. Any expenditure related to your business is tax deductible.
Report Your Tips with Your Income
The tips you receive as a beauty professional is taxable income and you should report it on your tax return. The IRS has a guide that addresses tip income reporting.
File on Time
Make sure you file your taxes on time to avoid any late payment penalties. Penalties can be both a costly and unnecessary expense for a small business owner. Use an E-file software to conveniently submit your tax return.