Now that 2018 is over, your least favorite time of year is swiftly approaching—tax time. (Insert groan here.) While you may not be thrilled to sit down and tally just how much you owe the government, you can ease the pain by being smart about the write-offs available to studio owners and freelance teachers.
What Is a Tax Write-Off, Anyway?
Write-offs reduce the total income you'll be taxed on as a business owner. If your business brings in $75,000, for example, and you can deduct $10,000 in write-offs, you'll be taxed on only $65,000. Write-offs, says arts and entertainment accountant Jessica Scheitler, break into three categories: business expenses, personal deductions and credits.
7 Write-offs Often Overlooked
1. Business gifts "This could be any gift [worth $25 or less] that's intended to advance your business," says Scheitler. "I have a tattoo artist client who buys snacks and beer for his clients while they get tattooed. He might be thinking about customer service and trying to be nice, but that still counts."
2. Copyright expenses
3. Makeup, hair and nails for theatrical use Your own haircuts don't count—but the sparkly stage makeup you buy for your comp kids to wear for that aliens piece definitely does.
4. Memberships, dues and subscriptions Like your subscription to Dance Teacher!
5. Muscle conditioning and massage
6. Website expenses
7. Tour and convention travel Hotels; meals; car rental; gas; parking; tolls; air, rail and bus fares
Studio Owners who try TutuTix for their Spring 2019 Recitals can get a $222 Visa Gift Card. Click here to learn more.
Sponsored by TutuTix Jan. 03, 2019 06:30AM EST
Is Your Tax Bill Too High?
Photo by rawpixel on Unsplash