What Personal Appearance Products are Tax Deductible?
It’s that time of year when professionals and entrepreneurs are gathering receipts in search of tax deductions. People working in industries that require a certain look may not realize how many deductions they could be entitled to for personal appearance expenses. If you’re curious, you can consult with an online CPA from your home in San Jose, Chicago, or any other US city.
In recent years, filers have claimed $1.2 trillion dollars worth of tax deductions each tax season. The numbers would be higher if more people understood how deductions work and what the qualifiers are.
There are people in the beauty industry that can claim certain expenses associated with their professions. These careers usually involve people whose personal appearance is a large part of their job.
Keep reading to learn more about which personal appearance products and services are tax-deductible.
Personal Appearance Entrepreneurs
There are many entrepreneurs freelancing in the beauty industry. Some have their own clientele while others work for people in the entertainment industry.
Like any other small business, you are entitled to claim deductions that are essential to your business success. It could be a cosmetology suitcase or make-up bench. You can also claim the following:
- Home offense expenses
- Transportation, i.e. mileage, meals, car maintenance, airfare
- Travel, i.e. hotels, meals, entertainment
- Ongoing education and training expenses
To claim these expenses you will need to understand tax guidelines. You will also need to have documented proof of your expenses.
It is a good idea for you to pay yourself a salary and create line items to show your expenses. Check out https://www.paystubs.net to see how easy it is to generate a pay stub even if you’re the only employee.
News anchors may be able to claim their wardrobe as a deduction. Most news stations have a certain look they want on-air personalities to achieve. It is no different than someone having to wear a uniform.
Are you spending money on clothes, you would not ordinarily wear, and not receiving a wardrobe allowance? The expenses could be deductible.
Cosmetic Surgery, Haircare, and Makeup
Cosmetic surgery is a little trickier and hard to prove. There have been instances where exotic dancers have successfully claimed breast augmentations. The question comes down to, if it were not for your career would you still have the procedure done.
Haircare can be extremely costly. Wigs and hair extensions run into the hundreds of dollars before you ever get in the stylist chair. Models and actresses should look into these expenses as work-related deductions.
Like professional attire and haircare, wearing make-up is sometimes a requirement for your employment. As a rule, it isn’t an expense you would normally incur outside of work, it may be tax-deductible.
Are You Claiming All of Your Deductions?
Personal appearance deductions is not an all-inclusive list. Remember, you will need to be able to justify your deductions if you are ever audited by the IRS. Make sure the items you claim are work-related and a necessity for you to do your job.
Since we’re on the subject, check out our section on beauty & makeup for some awesome tips.