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Tax Tips for Self Employed Hair Stylists

Monday, October 1, 2012

A lot more individuals are starting to work out of their homes rather than in offices. This is especially true for self-employed hair stylists. Rather than rent space from local hair salons, these individuals are now operating out of their home. By doing so, however, they take on a whole new mess of tax issues. Therefore if you are working out of the home as a barber or hair stylist, you need to keep these tax tips in mind to avoid a hefty tax bill at the end of the year.

Provide the Right Information

IRS revenue officers recommend that all individuals who are self-employed hire a tax professional to prepare their returns. This is because the information regarding a self-employed tax return is difficult to understand and a lot of individuals simply do not know the tax laws well enough to file their own returns.

Receipts

No matter what is purchased, if it is going to be tax deductible a person needs to keep the receipt. That way if there is ever an audit the individual can ensure they have proof about the purchase made. This will go for all hair supplies, utilities and even rent.

Resale Items

Any items that are purchased to resell, such as hair care products, are considered inventory items by IRS revenue officers. Therefore, a hair stylist or barber will only be able to deduct the costs of that inventory item after it actually sells.

Deductions

There are a lot of deductions available for individuals who are self-employed. The issue, however, is most individuals are unaware of these deductions or they are not aware of how it applies to them. Rather than risk spending more in taxes, IRS revenue officers recommend hiring a tax professional who can help organize deductions and credits to ensure that you do not pay more to the IRS than you have to.

Stay Up to Date

A lot of self-employed individuals do not stay up to date on the latest tax codes. By doing this they are unaware of what new laws are in effect and how they will impact their taxes. Anyone who is self-employed should still read up on new IRS revenue officers laws – regardless if they have a tax professional.

If you need assistance with your self-employment taxes or you have an audit, contact the professionals at Strategic Tax Lawyer today for assistance. STL can help you negotiate with IRS revenue officers and represent you during your self-employment audit.

IRS.gov is a good place to start if you need government and federal tax related guidance.  Need to contact the IRS?  Check out the library of IRS forms and publications for one to meet your specific need.  The Department of Labor can offer answers related to employment taxes.  Lastly, Google is a good place to head when you need to search local laws pertaining to your state.  Check out your local Beverly Hills Bar Association