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May 29, 2018

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Tax Tips for Yogis

May 29, 2018

Independent Contractors have advatages

From a tax perspective, being an independent contractor offers several advantages, although it also comes with added responsibilities. You likely won’t have to pay tax on all your income because you’ll be able to deduct business expenses using IRS Schedule C when you prepare your tax return. The resulting number after business deductions is what you’ll enter on your tax return as self-employed taxable income.

Be careful with your business deductions, however. The Internal Revenue Service says that business expenses must be both “ordinary and necessary” to be deductible.

  • Ordinary means that every other yoga instructor probably spends money on the same expense.

  • Necessary simply means that the expense is integral to doing business.

Look around your studio and what do you see? The costs of those mats, straps, and blocks are all tax deductible, as well as:

  • The percentage of the monthly costs of maintaining your home, if you have office space there dedicated solely to your yoga business.

  • Yoga professional memberships (Yoga Alliance, YogaGlo and Gaiam)

  • Malpractice and liability insurance, as well as legal and professional services

  • Music and music subscriptions for classes (CDs, iTunes Music, Spotify, and Pandora)

  • Aromatherapy, essential oils, and supplements for classes

  • Yoga certification fees and training expenses

  • CPR training and certification required for teaching yoga

  • Yoga website subscriptions for your business (e.g. YogaGlo)

  • Continuing yoga education (yoga and meditation workshops, classes, and seminars)

  • Yoga apparel for teaching your classes

     

     

     

     

     

     

     

     

     

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