Self-employed trades

Tax Help for Barbers and Hair Stylists

Chair rent, clippers, product, licensing — if you work for yourself behind the chair, those are business expenses, and your return should show them.

Barbers
Hair stylists
Salon workers
Booth and chair renters

Schedule an appointment (859) 307-1663

Most barbers and stylists we see are not employees. Renting a chair or a booth points that way, but it is not what settles it. The IRS applies the common-law test, weighing every piece of evidence about control and independence in three categories:

Behavioral control — whether the shop has the right to direct what work you do and how you do it, through instructions, training or otherwise.
Financial control — whether the shop controls the business side: your unreimbursed costs, your investment in your own clippers and chair, whether you can offer your services to whoever you like, how you are paid, and whether you can make a profit or take a loss on a slow week.
Relationship of the parties — what any written or spoken agreement says, whether you get employee-type benefits such as paid vacation or sick pay, how permanent the arrangement is, and whether your work is a core part of what the shop does.

Where those point to independence, you are self-employed: no tax is withheld from your earnings, and the return you file is a business return whether or not anyone has told you so. If your arrangement genuinely sits in the middle, bring us the details — and where it cannot be settled, the IRS will rule on it if you file Form SS-8. The full test is in Topic no. 762, Independent contractor vs. employee.

That catches people out in two ways. The first is the bill: on top of income tax you owe self-employment tax, and nothing has been set aside for it. The second is quarterly estimated payments, which the IRS expects during the year rather than all at once in April.

Both are manageable once someone shows you the shape of it. We have been doing this for shops on both sides of the river since 1996, and we would rather sit down with you in November than in April.

Cash and tips count as income. We are not going to pretend otherwise. What we can do is make sure you are claiming everything you are entitled to on the other side of the ledger, so what you actually pay is right rather than merely high.

What we look for on your return

Common deductions in this line of work. Which of them apply depends on how you are set up — that is what the first appointment is for.

Chair or booth rent

What you pay the shop for your space is a business expense. Keep the agreement and a record of every payment, particularly if you pay in cash.

Tools of the trade

Clippers, shears, trimmers, blow dryers, capes, chairs and mirrors. Larger purchases may be written off in the year you buy them rather than spread over several years.

Product and supplies

Shampoo, color, styling product, towels, sanitizer, disposables. Product you resell to clients is handled differently from product you use on them — we will separate the two.

License, education and dues

Cosmetology or barber license renewal, continuing education hours, and professional association membership.

Mileage between locations

Driving between shops, to a client, or to pick up supplies. Commuting from home to your regular shop does not count — a mileage log is what makes the difference.

Phone, booking and card fees

The business share of your phone bill, online booking software, and the percentage the card reader takes on every payment.

General information for people working in this trade, not advice about your particular situation. Tax rules change and the details matter — talk to us before you act on anything here.

Other trades we work with

Trade

Cutting hair for yourself? Let us take the filing off your desk.

Call us, request an appointment, or send a message and we will get back to you.

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Online booking covers Covington and remote filing. Cincinnati appointments are arranged by phone.