Tax Write Offs for Self Employed Hair Stylists

Leased Chair Deductions

• Most self-employed hair stylists rent or lease a chair in an established salon. The hair stylist pays a fee to the salon owner for the use the salon space and major equipment such as hair washing stations and stationary hair dryers. Traditionally, the hair stylist keeps all or most of the proceeds she earns for herself, although some salons require a portion of earnings be paid to the salon in addition to the chair rental fee. Both of these costs are tax deductible for the hair stylist.
  
  

Equipment and Supplies Deductions

• Many self-employed hair stylists buy and use their own equipment, such as scissors, brushes, combs, curlers, styling wands and beauty products. The cost of these supplies is tax-deductible for the stylist.
  
  

Leased Retail Space Deductions

• A self-employed hair stylist who sets up a corporation structure as a sole proprietor typically leases or buys commercial space and runs her own shop. In this instance, the cost of rental space, utilities, insurance, equipment and supplies are tax deductible. Major renovations or build-outs that increase the value of a property are considered capital expenditures and must be depreciated, rather than deducted, over time.
  
  

Training and Licensing Deductions

• Many self-employed hair stylists regularly participate in continuing education programs that help them increase their knowledge about new products and techniques in the salon industry, or allow them to get specialized licenses and certifications. The cost of attending these programs, including the cost of required materials and supplies, is considered tax-deductible.
  
  

Advertising Deductions

• The cost associated with advertising and marketing efforts designed to promote the hair stylist are tax-deductible. This includes the cost of starting and maintaining a website, printing advertising materials and placing ads in magazines, newspapers and direct-mail pieces.
  
  

Health Insurance

• The Small Business Jobs Act of 2010 allows qualified self-employed hair stylists to deduct the cost of health insurance for themselves and their family in the calculation of self-employment tax. To qualify, a hair stylist must purchase health insurance under the name of her sole proprietorship business.