If you're a self-employed cleaner or housekeeper, you're in luck! There are a plethora of tax write-offs and deductions that you can take advantage of to reduce your taxable income. Here's a list of some of the most common ones that you might not be aware of.
Whether you're putting up flyers in your local grocery store or running ads on social media, advertising costs can add up. But don't worry, these expenses are tax-deductible. So, keep track of every penny you spend on getting the word out about your services.
How to write it off: Report these expenses on Schedule C, Box 8 of your tax return.
Did you know that meals you eat while conducting business can be written off? Whether you're meeting with a client over lunch or grabbing a quick bite while running errands for your business, you can deduct 50% of the cost. Just make sure to keep your receipts and note the business purpose of the meal.
How to write it off: Report these expenses on Schedule C, Box 24b of your tax return.
If you use your car for business purposes, such as driving to clients' homes, you can deduct the portion of your car insurance and registration fees that relate to your business use. Keep track of your business mileage to determine the percentage of these costs that you can write off.
How to write it off: Report these expenses on Schedule C, Box 15 of your tax return.
Regular maintenance on your vehicle, like oil changes and tire rotations, are also deductible if you use your car for business. Again, you'll need to keep track of your business mileage to determine the deductible portion of these costs.
How to write it off: Report these expenses on Schedule C, Box 9 of your tax return.
If you've purchased a car specifically for your cleaning business, you can write off the cost through depreciation. This allows you to deduct a portion of the car's cost each year over the course of several years.
How to write it off: Report these expenses on Schedule C, Box 13 of your tax return.
From vacuums to scrub brushes, the cost of equipment you buy for your cleaning business is fully deductible. So, don't hesitate to invest in the tools you need to get the job done right.
How to write it off: Report these expenses on Schedule C, Box 22 of your tax return.
Similarly, the cost of cleaning supplies, like detergents and disinfectants, is also fully deductible. Keep your receipts and keep track of what you spend on these necessary business expenses.
How to write it off: Report these expenses on Schedule C, Box 22 of your tax return.
If you use part of your home as an office for your cleaning business, you can deduct the cost of furniture and other items you use in that space. This includes desks, chairs, and even decor that makes your workspace more pleasant.
How to write it off: Report these expenses on Schedule C, Box 18 of your tax return.
Brochures, business cards, and other marketing materials are all tax-deductible. These items are essential for spreading the word about your services and attracting new clients, so don't skimp on them.
How to write it off: Report these expenses on Schedule C, Box 8 of your tax return.
If you travel for your cleaning business, whether it's to a cleaning convention or to service a client out of town, you can deduct 50% of your meal costs. Just remember to keep your receipts and note the business purpose of the trip.
How to write it off: Report these expenses on Schedule C, Box 24a of your tax return.
Parking fees incurred while conducting business are fully deductible. So, if you have to pay to park while servicing a client, make sure to keep your receipt.
How to write it off: Report these expenses on Schedule C, Box 27a of your tax return.
If you use your phone for business, you can write off a portion of your phone bill, as well as the cost of any accessories like a phone case or headset. Just make sure to keep track of your business use.
How to write it off: Report these expenses on Schedule C, Box 27a of your tax return.
If you use part of your home as an office for your cleaning business, you can deduct a portion of your power bill. The amount you can deduct is based on the percentage of your home that's used for business.
How to write it off: Report these expenses on Form 8829 of your tax return.
If you have insurance on your business property, whether it's your home office or a separate business location, you can deduct the cost of your premiums. This can be a significant deduction, so don't overlook it.
How to write it off: Report these expenses on Form 8829 of your tax return.
Repairs to your business property are also deductible. This includes both minor repairs and major improvements. Just make sure the repairs are necessary for your business.
How to write it off: Report these expenses on Schedule C, Box 21 of your tax return.
If you have to pay tolls while driving for business, you can write off these costs. Keep your receipts or your electronic toll records as proof of these expenses.
How to write it off: Report these expenses on Schedule C, Box 27a of your tax return.
If you travel for your cleaning business, you can deduct your transportation costs. This includes airfare, train tickets, and even the cost of gas if you drive your own car.
How to write it off: Report these expenses on Schedule C, Box 24a of your tax return.
If you need to stay overnight while traveling for business, you can deduct the cost of your lodging. Just make sure to keep your receipts and note the business purpose of the trip.
How to write it off: Report these expenses on Schedule C, Box 24a of your tax return.
If you carry a tool kit in your vehicle for your cleaning business, you can write off the cost. This includes the cost of the tools themselves, as well as any containers or bags you use to carry them.
How to write it off: Report these expenses on Schedule C, Box 22 of your tax return.
If you use part of your home as an office for your cleaning business, you can deduct a portion of your water bill. The amount you can deduct is based on the percentage of your home that's used for business.
How to write it off: Report these expenses on Form 8829 of your tax return.
If you have a website for your cleaning business, you can write off the cost of your website and hosting fees. This includes the cost of designing the website, as well as any ongoing fees for hosting and domain registration.
How to write it off: Report these expenses on Schedule C, Box 8 of your tax return.
If you use Wi-Fi for your cleaning business, you can write off a portion of your Wi-Fi bill. Just make sure to keep track of your business use.
How to write it off: Report these expenses on Schedule C, Box 25 of your tax return.