I'm an accountant and this has really good information that I was looking for. I do want to clarify a few things. 1] Paying taxes throughout the year (quarterly) is the law, not a personal preference. Failing to do this can subject you to penalties and interest to both the Federal and State governments. 2] You need receipts for ALL expenses claimed on your return, not just the variable ones. 3] Be careful about expensing all "fixtures". You may need to capitalize and depreciate some of the items that have longer useful lives (more than 1-year life). Make sure you are disclosing these purchases with your accountant to determine when/if purchased items are expenses or assets. Thanks for the video!
@@brandywatson7219 If you or your spouse had a job that withheld taxes then you might have been paying in enough during the year in the past. However, withholding rules changed in 2020, and for many, reduced the amount of withholding. Work with your accountant to make sure you have enough withholding and/or paying estimated taxes quartly to avoid penalties at year end.
Thank you SO MUCH for this video I’m going solo with a new studio soon so this playlist has been a life saver, ALSO thank you so much for sharing that testimony of paying your taxes your first year. Praise the Lord He is so good!
Just seeing this video! I wish I saw it a year ago to help me bc I feel crazy all over the place when it comes to tax time. This will help me a bunch now! Thank you for this!! ❤
thank you so so much for this video! as a first year salon suite owner, i've been stressing myself out about taxes and this made me feel so much better
Thank you I’m about to cry I’m about to finish school and I’m getting my hair braiding off the ground since I can’t keep a regular job. I’ve been trying my best to learn how to file for taxes with my braid business. Thank you so much!!! Time for me to rock and roll
Girl! You are a God sent! I was over here like yaaaaaaaaas come through God with the reducing those taxes. So glad he had your group pray for you and lead you to those receipts. You explained everything so clearly....I appreciate all of this, you officially have a new follower😉 Blessings to you and your business💓
This is lifesaving content. im writing this down for the future!! Thanks Lau! Also omg that 12k shock must have been huge. im so glad god came through for you in the end with the 4 month receipts!
Ivan J it was scary! I wish I knew all this info before I opened my small business so I figured I would pass on what I’ve learned! 😊 thx for watching!!
I like your video very informative information, however, as we prepare to do bookkeeping, we mostly refer to bank statements and for cash transactions we would refer to receipts. I am also a Tax Advisor and Planner for business .. we would show you throughout the year how to maximize your business to get the more write offs for your business and pay less taxes. Each accountant works differently and we offer different services. In general I always like to educate my client and I always want to meet with them at least 3-4 times a year.
This video is amazing! I don’t own a suite yet but I am manifesting that I will open one in the next year or two and this video was very helpful and gave me a lot of perspective. Thank you. You’re the best
Hi taxes have changed so much in the last couple of years could you possibly do an update on this video this was very helpful at the time but things have changed.
I am an Esti! So when I buy my devices like microneedling pen or my wax pot, which area do I put those in? Would it be workplace fixtures, or electronics???
Can we use cosmo school as a write off? Like how much we’re paying for school ,the supplies we’re having to buy while in school, mileage for gas to commute to & from school, our lunch that we have to buy while on breaks at school, gas when we have to travel to field trips for school, or business cards?
This makes me feel love it I am stressing out right now trying to figure out my taxes for my accountant right now. She’s asked me and it’s coming down to the wire. I was just like you my first year, and I kind of just threw myself into the business not really organized. I saved a lot of receipts but I don’t know if I have them all so now I’m going back and trying to find them. Also about half way through the year I jumped on QuickBooks attached to my work debit card so my question is how do I make sure I do not duplicate receipts that I have and receipts that are used using my QuickBooks debit card do I just look at the receipt and if it’s on a debit card that I know it’s probably in QuickBooks?
that’s a great question, I haven’t used any electronic things like that for that reason! I print everything out and do paper receipts only, it’s the best way i’ve been able to keep track
Hi!! I have a question and really need help! So I don't own a salon/suite, I have a DBA and am a traveling hairstylist/MUA mainly doing weddings and 2021 was my first year in business and it's been going great! I opened in Sep so it hasn't even been a year yet however tax season is coming and I have some things to figure out. I've been bookkeeping expenses/income and will have my uncle help me file everything but I was just wondering if you knew what would be better for car write offs, I'm not sure if I should go by miles or car payment/insurance/expenses. I'm not even sure if I can do that, hopefully you know and can help!! That was my only question but other than that loved this video and your background is awesome! Love the Jesus vibes haha! xo
I’m a hairstylist but I’m also a waitress and I always filed yearly cause of the waitressing job. I get my W2 from the restaurant and then I file everything. I never got a penalty from my self-employed LLC business. Is it still better to just do it that way or file quarterly taxes for my business and then file for the restaurant taxes once I get the W2? Also, I do withholdings from my restaurant’s paycheck to reduce my tax payments.
Thank you so much for this. I’m about to open up my salon suite and I’m trying to figure out the business portion. Do you have to use your business debit card to buy expenses to do write offs or can I use any debit card and save the receipts?
Gotcha. What if you don’t have all of the funds to purchase all of the supplies up front, if you are just starting out with no income from clients? Do you just use your business credit card? I’m sorry for all the questions lol
Read Income Tax Shattering the Myth. If you live in one of the fifty states just making a living, you are swearing on these forms that you operate out of DC and surrounding islands. You are also filing class 2 forms (gift and donations). The IRS LOVES you for donating.
it’s annoying but amazon doesn’t send recipes so at the end of the year I go through my past purchases and add them up individually and add them to my expenses
I was told by my accountant that writing off cc processing fees is non factor as the fees are automatically deducted from your profit prior to your credit card processor making deposits into your bank account ( at least this is how square works.)
What do you mean by credit card fees? Are you talking about your credit card bill that you used for personal use like eating out and stuff? Or the fee of the card itself ?
@@WholyHair ohhh I see. I have a similar situation. Our booking app takes a processing fee of 2.7% for every card or prepaid appt. How do you list this as an expense on your card? Because it’s not you that is actually swiping your own card, it’s the clients right? If you can please explain this situation in depth, I’d really appreciate it! Your video was very very very informal. Thank you for replying
@@2222hasib at the end of the year my software system tells me a total of how much I was charged in credit card processing fees so it makes it easy! maybe see if you can find out in the settings
Um...if you are renting a suite or booth you are not an independent contractor who would use a 1099. You are a self-employed business owner & most likely would use a Schedule C.
Do you have a phone that you use specifically for work? I was told that I couldn't write off my phone bill because it's used for personal use as well & it couldn't be divided as to how much of my business was actually done on the phone.
I save everything into my stride-app...check it out...is a app that allows you to save receipts & miles & then i just print it out for my CPA but if you can do your taxes alone for your self then more power to you
@@IrisGallegos-i7i that’s awful😭 it’s best to plan on paying quarterly so you don’t owe a huge amount at the end of the year! and also make sure you keep track of all the write offs
No, if you pay attention she prayed because she didn’t know what she was going to do about having to pay 12,000 in taxes at the end of the year. The next day she found over 6,000 in extra receipts she was able to write off that she didn’t otherwise have BEFORE God answered her prayer! So that left her with only having to pay 4,000! That’s what she prayed for! He provided. 💥🙌🏼💥💰
![12 HUGE Tax Write Offs for Small Business in 2024! [Bookmark This]](/img/n.gif)
I'm an accountant and this has really good information that I was looking for. I do want to clarify a few things. 1] Paying taxes throughout the year (quarterly) is the law, not a personal preference. Failing to do this can subject you to penalties and interest to both the Federal and State governments. 2] You need receipts for ALL expenses claimed on your return, not just the variable ones. 3] Be careful about expensing all "fixtures". You may need to capitalize and depreciate some of the items that have longer useful lives (more than 1-year life). Make sure you are disclosing these purchases with your accountant to determine when/if purchased items are expenses or assets. Thanks for the video!
I have been doing nails for 20 yes, I have never done quarterly taxes!!😬 I did not know this was the Law, my accountant has never told me this
@@brandywatson7219 If you or your spouse had a job that withheld taxes then you might have been paying in enough during the year in the past. However, withholding rules changed in 2020, and for many, reduced the amount of withholding. Work with your accountant to make sure you have enough withholding and/or paying estimated taxes quartly to avoid penalties at year end.
yes this is accurate! Thank you for clarifying.
Please don’t ever delete this video! You’re such a life saver , I can’t thank you enough to how much this helped!!
💗💗
THANK YOU SO MUCH FOR THIS! I cried while listening and FEEL SO MUCH MORE confident to do my taxes. THANKS AGAIN 🌹🌹🌹
3 years later and still helping people ❤
yay, love that 💗
Thank you SO MUCH for this video I’m going solo with a new studio soon so this playlist has been a life saver, ALSO thank you so much for sharing that testimony of paying your taxes your first year. Praise the Lord He is so good!
Just seeing this video! I wish I saw it a year ago to help me bc I feel crazy all over the place when it comes to tax time. This will help me a bunch now! Thank you for this!! ❤
This was extremely helpful. Your voice was extremely calming. Thank you for the video🤍
Thank you for all of these tips! These were great.
thank you so so much for this video! as a first year salon suite owner, i've been stressing myself out about taxes and this made me feel so much better
Thank you I’m about to cry I’m about to finish school and I’m getting my hair braiding off the ground since I can’t keep a regular job. I’ve been trying my best to learn how to file for taxes with my braid business. Thank you so much!!! Time for me to rock and roll
OmG! please share what you have learned. I am in the sale boat right now!
I talk about a really great business tool in this new video: th-cam.com/video/qp77pLe08wk/w-d-xo.html Hope it's helpful!!!
Girl! You are a God sent! I was over here like yaaaaaaaaas come through God with the reducing those taxes. So glad he had your group pray for you and lead you to those receipts. You explained everything so clearly....I appreciate all of this, you officially have a new follower😉 Blessings to you and your business💓
hahaha love it 💗💗💗 God always pulls through💪🏼 thx for watching!
Thank you so much. I am getting a suite in the next two weeks and I don't even know where to turn to and this video helped me a whole lot!
I have a whole series on opening a suite💗
I’m approaching my first year tax review and this just gave me ALOT of comfort sooooooooo helpful
This is lifesaving content. im writing this down for the future!! Thanks Lau! Also omg that 12k shock must have been huge. im so glad god came through for you in the end with the 4 month receipts!
Ivan J it was scary! I wish I knew all this info before I opened my small business so I figured I would pass on what I’ve learned! 😊 thx for watching!!
I watched many videos but this one is AMAZING.
Many blessings to you for helping others
Thank you so much!!! Im opening a salon suites building this year and this is soooooo helpful!
This is beyond helpful! Thank you! ❤
I like your video very informative information, however, as we prepare to do bookkeeping, we mostly refer to bank statements and for cash transactions we would refer to receipts.
I am also a Tax Advisor and Planner for business .. we would show you throughout the year how to maximize your business to get the more write offs for your business and pay less taxes.
Each accountant works differently and we offer different services.
In general I always like to educate my client and I always want to meet with them at least 3-4 times a year.
You are a life saver ❤❤. Thank you for sharing, God continue to bless you 🙏
Thank you for sharing this❤️
This video is amazing! I don’t own a suite yet but I am manifesting that I will open one in the next year or two and this video was very helpful and gave me a lot of perspective. Thank you. You’re the best
Hi taxes have changed so much in the last couple of years could you possibly do an update on this video this was very helpful at the time but things have changed.
very true, i’ve thought about doing an updated one! i’ve been so busy lately, but i’ll try!!
Your kindess is just so refreshing ! Thank you for sharing these amazing tips
thx for watching 💗💗
I am an Esti! So when I buy my devices like microneedling pen or my wax pot, which area do I put those in? Would it be workplace fixtures, or electronics???
Can we use cosmo school as a write off? Like how much we’re paying for school ,the supplies we’re having to buy while in school, mileage for gas to commute to & from school, our lunch that we have to buy while on breaks at school, gas when we have to travel to field trips for school, or business cards?
i’m not sure, I would ask your accountant!
@@WholyHair ok thank you for responding! Have a blessed day ❤️
Thank you so much for sharing!! I needed this!
You are so welcome! Go to wholyhair.com if you'd like to get on the waiting list for my future classes💗
This was so helpful! Thank you so much, God bless
thanks for the tip! that is true, sometimes the receipts do fade. God bless!!
Thank you so much for this helpful video. 🙏🏼 I am an Esty student and this is a helpful video to use in the near future!
Loved this video so much! God bless you!
Great video , love it ! I’m beginning my business so I want to do the right thing . Great list as well !! 🥰👏🏻
This was so helpful and definitely helped with stress! Thank you so much you’re such an angel🤍
im so glad💗 thx for watching!
This makes me feel love it I am stressing out right now trying to figure out my taxes for my accountant right now. She’s asked me and it’s coming down to the wire. I was just like you my first year, and I kind of just threw myself into the business not really organized. I saved a lot of receipts but I don’t know if I have them all so now I’m going back and trying to find them. Also about half way through the year I jumped on QuickBooks attached to my work debit card so my question is how do I make sure I do not duplicate receipts that I have and receipts that are used using my QuickBooks debit card do I just look at the receipt and if it’s on a debit card that I know it’s probably in QuickBooks?
that’s a great question, I haven’t used any electronic things like that for that reason! I print everything out and do paper receipts only, it’s the best way i’ve been able to keep track
For the receipt savings, could the receipts be scanned as documents or do they have to be the originals
?
Hi!!
I have a question and really need help!
So I don't own a salon/suite, I have a DBA and am a traveling hairstylist/MUA mainly doing weddings and 2021 was my first year in business and it's been going great! I opened in Sep so it hasn't even been a year yet however tax season is coming and I have some things to figure out. I've been bookkeeping expenses/income and will have my uncle help me file everything but I was just wondering if you knew what would be better for car write offs, I'm not sure if I should go by miles or car payment/insurance/expenses. I'm not even sure if I can do that, hopefully you know and can help!! That was my only question but other than that loved this video and your background is awesome! Love the Jesus vibes haha! xo
I’m a hairstylist but I’m also a waitress and I always filed yearly cause of the waitressing job. I get my W2 from the restaurant and then I file everything. I never got a penalty from my self-employed LLC business. Is it still better to just do it that way or file quarterly taxes for my business and then file for the restaurant taxes once I get the W2? Also, I do withholdings from my restaurant’s paycheck to reduce my tax payments.
Great video! question? Where to get the form 1099? Thanks
you have to file your business with the state to register as a 1099 business owner
Thanks for this video! So helpful 🙌🏼
i love you’re cop
Very very helpful
Thank you for creating this video.. so helpful!!! 😇
Angel Garden you’re welcome, glad you liked it 💗
Thank you so much for this. I’m about to open up my salon suite and I’m trying to figure out the business portion. Do you have to use your business debit card to buy expenses to do write offs or can I use any debit card and save the receipts?
I like to use my business debit so I keep things separate, I also have a business credit card for points!
Gotcha. What if you don’t have all of the funds to purchase all of the supplies up front, if you are just starting out with no income from clients? Do you just use your business credit card? I’m sorry for all the questions lol
@@JustMeKortne yes, you can use the credit card, but I would recommend saving up before you go off on your own. it’s not great to start out with debt
Very helpful thank you
Thank you for making this video ❤️😊
Read Income Tax Shattering the Myth. If you live in one of the fifty states just making a living, you are swearing on these forms that you operate out of DC and surrounding islands. You are also filing class 2 forms (gift and donations). The IRS LOVES you for donating.
What about the expenses for your salon you order on Amazon? Or anything online. How do you keep track of those 🤔
it’s annoying but amazon doesn’t send recipes so at the end of the year I go through my past purchases and add them up individually and add them to my expenses
Thank you
This was so helpful!! Do you write everything down like this when you pay quarterly taxes?
yes! and I print off the receipts too
I was told by my accountant that writing off cc processing fees is non factor as the fees are automatically deducted from your profit prior to your credit card processor making deposits into your bank account ( at least this is how square works.)
Very helpful! Thank you very much! 💖
Would you recommend this for stylists who rent a chair in a salon?
Samantha D it depends on if you file as a 1099 or W2. If you file as 1099 than yes
Prayers works people! A big confirmation
amen!
Please don’t ever delete your videos/channel!!!
Thank you ❤😅
What about online receipts do you print those or how do you add your online purchases
Sarah Orozco I will either print them out or write them down on a sheet of paper and keep it with all the other receipts
Amazing video thank you
I wonder if you could also add daycare
Thank you. Will this work for me as a barber. I pay booth rent every week .?
yes!!
Thank you so much for this
Thank you!!
Great information
Wowwwwwww life saverrrrrrrrrrrrrrrr omgggggggg
💗
Helpful thank you
QuickBooks helps a lot also
thank you very helpful
Are you able to file quarterly as a independent contractor making commission?
If you’re a w2 commission employee and have to provide your own color and tools how would you go about this come tax season?
all your expenses should be able to be a tax write off, but I would ask the person filing your taxes
so helpful thank you!
What do you mean by credit card fees? Are you talking about your credit card bill that you used for personal use like eating out and stuff? Or the fee of the card itself ?
when I swipe someone’s card at the salon with my credit card reader there is a fee i am charged per swipe.
@@WholyHair ohhh I see. I have a similar situation. Our booking app takes a processing fee of 2.7% for every card or prepaid appt. How do you list this as an expense on your card? Because it’s not you that is actually swiping your own card, it’s the clients right? If you can please explain this situation in depth, I’d really appreciate it! Your video was very very very informal. Thank you for replying
@@2222hasib at the end of the year my software system tells me a total of how much I was charged in credit card processing fees so it makes it easy! maybe see if you can find out in the settings
Um...if you are renting a suite or booth you are not an independent contractor who would use a 1099. You are a self-employed business owner & most likely would use a Schedule C.
jotted down some notes predicate the help!
My price tags usually fade by the end of the year?
Do barbers who earn 65% commission on their work get to write off the 35% they pay the shop?
@@Ghosttowndelivery if they’re getting commission they would probably be a w-2 employee which doesn’t get any write offs
Thank you!
Do you have a phone that you use specifically for work? I was told that I couldn't write off my phone bill because it's used for personal use as well & it couldn't be divided as to how much of my business was actually done on the phone.
I dont have one just for work, but maybe see if you could write off a portion of it?
I save everything into my stride-app...check it out...is a app that allows you to save receipts & miles & then i just print it out for my CPA but if you can do your taxes alone for your self then more power to you
If I just sell wigs does this apply
Do you have to file taxes on the food and clothes you buy for your home
no, only the things related to the business
Do you still use quickbooks? Or does vagaro suffice?
I just use Vagaro to track all my transactions, but I use an accountant to file
🔥🔥🔥🔥🔥
❤️❤️❤️
Thank you, can you tell me you paid $4000 out of how much making???
my first year out on my own I had a lot of expenses opening my studio, but I don’t remember exactly how much I made
Good
Do you have to have a business license and a salon license or are they the same thing
you dont need a business license to operate in the state I live in but obvi need a cos license to have a suite
Do you give your tax lady all of the receipts or just the totals on the paper?
just the totals!
Have you ever tried using just bank statements to find everything? I lost a lot of receipts
the bank statements usually don't always go back a full year, I like to have hard copies but thats just my preference!
My bill was $8906 but my accountant told me $7000 and I just don’t understand either one
this was was so helpful thank you!
So glad it was helpful!
so i don’t have receipts but i have my bank statements
that’s okay, but receipts are best to have a hard copy! some bank statements only go back so far. plus sometimes you may pay in cash
Can you write off insurance?
yes, some insurance you can. you’ll have to ask the person who files for you
Do you have a separate bank account for all hair/salon stuff separate form your personal banking??
yes! I set up a business debit account
Me 10 grand 😢😢😢😢😢😅
@@IrisGallegos-i7i that’s awful😭 it’s best to plan on paying quarterly so you don’t owe a huge amount at the end of the year! and also make sure you keep track of all the write offs
So you prayed for organizational and tax skills
No, if you pay attention she prayed because she didn’t know what she was going to do about having to pay 12,000 in taxes at the end of the year. The next day she found over 6,000 in extra receipts she was able to write off that she didn’t otherwise have BEFORE God answered her prayer! So that left her with only having to pay 4,000! That’s what she prayed for! He provided. 💥🙌🏼💥💰
this was so helpful! thank you!