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30 Tax Deductions for Your Massage Therapy Practice

 

Trying to figure out how to save money on your taxes this year? If you’re a self-employed massage therapist, there are a lot of things you can write off to lower your taxable income. In this article, you’ll learn which tax deductions for massage therapists are available to you.

 

Getting Started: Gather this information

Filing taxes is a daunting task for many massage business owners, but it doesn’t have to be. If you keep good records, it can be as easy as printing off a couple reports and handing them to your accountant.

 

Aside from identification documentation, there’s two pieces of information you’ll need to file taxes for your massage therapy business.

 

  1. Income 
  2. Expenses 

 

These two pieces of information will be used to determine what portion of your income is taxable.

 

First add up all of your income, including massage sales and tips. If you use a clinic management software, like ClinicSense, sales reports are generated automatically. All you have to do is click print. You can also print reports for sales tax collected, if you’re required to do so.

 

Next, add up all the expenses you incurred related to the cost of running your massage business. Make sure you have receipts from these transactions.

 

If you’re not sure what counts and what doesn’t, get advice from an accountant.

How it all works: Income and tax deductions for massage therapists

Does thinking about taxes stress you out. Relax. Here’s a simple breakdown of the numbers. This is how your income and expenses are converted into taxable sales and tax deductions for your massage business.

 

There are 3 important numbers reported on your self-employed massage taxes.

 

  1. Gross Sales:  This number represents every last dime your business made this year. It includes every sale, including products and services. It even includes the tips clients gave you for a job well done.

  2. Deductions:  This number represents the cost of doing business. It includes all the things you had to pay for in order to operate your massage business.

  3. Net Sales:  This number represents your profit. It’s what you had left after you paid all your business expenses. This is your taxable income.

 

Here’s an example of how that math works out:

Imagine that your total sales for the year was $75,000. You also incurred $25,000 in business expenses. This is how that would break down on your tax forms.

 

Gross Sales: $75,000

Deductions:  $25,000

Net Sales: $50,000

 

Do you see how the deductions lower your taxable income (net sales)? That’s how tax deductions save massage therapists money. Without them, you’d pay taxes on your total sales (gross sales).

 

30 common tax deductions for massage therapists

Now that you understand that you’re only taxed on net sales, you can see how deductions save you money. It’s not usually advisable to spend more money than necessary to run your business. However, you should take advantage of every massage therapy tax deduction available to you.

 

Here's a list of common massage therapy tax deductions. 

 

  1. Rent: One of your biggest deductions may be the money you spend on the space you rent for your massage business. 

  2. Startup cost: If this was your first year in business, that initial capital you spent to get set up qualifies as massage business startup costs.

  3. Massage Therapy Equipment: Anything you buy for your treatment room is a deduction, including your massage table, stool, bolsters and tools.

  4. Massage Supplies: Items you use every day for the purpose of massage qualify as tax deductions. This includes oils, lotions, essential oils and topical analgesics.

  5. Linens: All those blankets, towels and sheets you buy are deductions too.

  6. Laundry Services: If you use a service to launder your linens, you can write off the cost of that.

  7. Cleaning Supplies: Your office requires cleaning. All items bought for that purpose count.

  8. Uniforms: The clothes you wear exclusively at work are considered a uniform. That even includes the mask you’ve been wearing.

  9. Utilities: The water, electric and gas that serve your building are deductions.

  10. Cell phone: If you use your phone for business, that qualifies as a tax deduction for your massage business. If your office has a landline, that qualifies too.

  11. Internet: If your business needs internet service to do administrative tasks or to offer wifi for waiting clients, you can write that service off.

  12. Credit Card Processing Fees: The money your credit card processing company takes before depositing funds into your bank account is a qualifying expense.

  13. Bank fees: If your bank charges you fees for your business accounts, you can write that off.

  14. Professional Service Fees: If you hire a professional, like a lawyer, accountant or cleaning service, to assist you with your business, include that in your expenses.

  15. Licensing Fees: When you renew your massage license or certification, there’s usually a fee. This counts as a tax deduction, as well as business licenses and any other certification you get for your business.

  16. Liability insurance: The massage liability insurance you purchase to protect your practice is a tax write off as well.

  17. Gas mileage: If you have a mobile massage business, offering in-home services, all those miles are a major expense to your business. Even if you only treat clients in your clinic, you can write off miles driven to run business errands and to massage events (but not miles driven to your clinic).

  18. Software: Any software you purchase to make running your business easier, is a business expense. This includes things like clinic management software and accounting software.

  19. Computer: Did you buy a new laptop that you’re using for business? Add that to your business expenses.

  20. Website: Do you pay an annual fee or monthly hosting fee to keep your massage website live? 

  21. Marketing Materials: Almost every business has this deduction. It includes things like business cards, brochures, flyers, etc.

  22. Advertising: Money spent marketing yourself as a massage therapist is a qualifying expense.

  23. Independent Contractors: If you have another therapist working in your clinic that you pay as an independent contractor (this means they are technically self-employed), the cost of that is a deduction.

  24. Payroll: If you pay someone a salary, that is a big expense.

  25. Continuing education: Learning new massage skills is a business expense.

  26. Conference fees: Attending massage related conferences is also a business expense.

  27. Business travel: The cost of travelling to conferences or weekend seminars is also a massage tax deduction. This includes airfare and hotel.

  28. Business Meals: You can even write off the meals you buy while attending conferences and seminars.

  29. Music Subscriptions: If you stream music in your massage room, you can write off the cost of that subscription. 

  30. Office Decor and Furniture: Everything you buy to furnish your clinic or create a relaxing massage room is also qualifying expenses too.