Esthetician Tax Write-Offs: What You Need to Know

22 de dezembro de 2023

Written by Abby Ahearn

22 de dezembro de 2023

Written by Abby Ahearn

As tax season draws near, looking ahead to how you’ll do your taxes as a business owner will keep you prepared for the entire process and will let you maximize the money you’ll get back.

If you have your own business, or started your own salon, knowing which expenses you can make deductions on is crucial for reinvesting in your business in the new year for supplies and services, and preparing for unexpected expenses.

Table of Contents

How to Write Off Products for Tax Deductions

Tax Deductions for New Business Owners

How to Stock Up Before Tax Season

Final Thoughts

Especially for those who just started their businesses in the last year, knowing which expenses you can write off will save you a lot of money in paying taxes, and will let you get more back.

If you plan to open a business in 2024, these tips will let you get ahead of your future deductions and make note of expenses as you go.

READ: Tips for Reducing Your Wax Salon Product Costs

How to Write Off Products for Tax Deductions

Writing off business expenses on your taxes can be of particular benefit to you if you’ve recently opened a business in the past year, or have given your salon a new look or upgrade. There are many items you can write off for business expenses, including:

Equipment

Warmers

First or second warmers for your business serve as the backbone of your salon and its operation. Writing off this expense will let you invest in a second or backup warmer this year.

Spa Tables

You can’t provide your services without your spa tables! Don’t miss out on this deduction.

Skin Care Equipment

From facial steamers to microdermabrasion machines and more, having your skincare equipment is an essential aspect of your salon.

Furniture

Salon chairs

You’ll need a chair in your salon suites for clients to leave their clothes and bags on, or to have them sit during a consultation.

Reception area furniture

You can’t have your clients waiting for their appointments with nowhere to sit! This applies to chairs, tables, and side tables in your waiting room.

Desks

Your receptionist needs a desk to work from! Write off this expense to reinvest in your business.

Cabinets/Organizers

Both in your reception area and in each of your suites, you’ll need cabinets to store supplies, office materials, and more to keep your business organized.

Display furniture

This is integral to have for retail add-on items prominently shown to clients.

Products

Waxes

Waxes are of course the most important part of your business, and what you’ll go through most of. Writing off this expense will make a huge difference.

Pre & post-wax care products

These products will be a staple for every service you provide, and should also be available as retail add-on purchases.

Skincare products

Especially if you provide both waxing and skincare services, you’ll of course need skincare products for your clients. Even if you don’t provide skin care services, you can also provide these products for sale to clients.

Employee Expenses

Salaries

You might not expect to be able to deduct employee salaries on your taxes, but you can in many cases!

Benefit plans

These matter a lot for your business, and don’t come cheap! Write off your benefit plans to even upgrade them in the coming year.

Uniforms/scrubs

Employee scrubs and uniforms can quickly add up expense-wise, but writing them off on your taxes can help you out a lot.

Insurance

Insurance premiums (worker’s compensation, liability, etc)

You might be surprised that you can claim this dedication, but insurance premiums are a huge business expense that will do you a lot of good to claim.

Marketing Expenses

Business cards, flyers

Business cards, flyers, and other marketing materials go a long way in spreading the word about your business. Make them go even further by claiming them as a deduction on your taxes.

Website costs/development

Buying a domain and building your website and social presence can cost more than you’d think, especially if you hire an IT developer or social media manager to do so. Writing off these expenses will help your business a lot!

The most common deductions independent estheticians can claim on their taxes are for expenses relating to buying supplies, products, warmers, furniture, uniforms, and other equipment. You can also in some cases claim marketing expenses, and employee-related expenses. Additionally, you can also write off educational expenses taken after getting your license - including Starpil University’s courses!

READ: How to Start a Waxing Business in 2024

Tax Deductions for New Business Owners

If you’ve just opened your own business this past year, be sure to research and write off start-up expenses, including equipment and marketing, in order to get that money back and reinvest in yourself and your endeavors. If you regularly make house calls as a part of your business, you can even write off mileage and gas!

For complete resources regarding the forms you’ll need to fill out, how to write off expenses, and general tax tips for your business, you can check out this complete guide.

Writing these expenses off can go a long way in developing and putting money back into your business as it takes off and continues to grow. Even if you haven’t opened your own storefront or physical business, operating independently and writing off these expenses will allow you to provide even better services for your clients in the future.

READ: The Ultimate Salon Marketing Guide

How to Stock Up in the Future

In order to receive your maximum refund during future tax seasons, try to stock up on the materials, equipment, and products you need before the year ends, and before filing your taxes. This will let you claim the maximum amount on your taxes and will save you from leaving possible deductions on the table.

This includes warmers, second warmers for your salon, equipment, accessories, pre & post, and waxes. If you think you would need some of these items or products in the earlier months of the year, you should stock up before filing and get that money back faster!

Another great way to get the most back on your taxes is by purchasing wholesale waxes and supplies. Joining Starpil Pro, which is our own portal for professional and wholesale waxing products, will let you do just that. This aspect of our site allows you to get exclusive lower pricing than retail on larger professional quantities of wax.

Not only will you be able to claim these expenses on your taxes, but buying in bulk will let you save money and save you from having to constantly reorder for retail prices. Join the Starpil PRO Portal today with just your license number to reap the savings and benefits of buying wholesale waxing supplies.

READ: How to Calculate ROI for Your Waxing Services

Final Thoughts

As a small business owner, we’re sure you know that you need to take all of the savings on supplies, equipment, and more to keep your business running smoothly and to keep it growing - especially in often economically uncertain times. Knowing what you need to do to take the most deductions possible on your taxes will allow you to reinvest in your business and make it the best it can be.