5 Self Care Expenses You Can Deduct From Your Business
We all know the entrepreneur that works herself to death, believing that hustling nonstop is the only way to succeed - she might even be you. Many entrepreneurs pride themselves on working long hours and not taking proper care of themselves. We get so focused on getting the job done that self-care slides right out the window.
But today we know first-hand that even during the busiest of times, you have to carve out space to take care of yourself. Sometimes we do manage to squeeze self-care into our routines, and sometimes we even pay a pretty penny to make the time worthwhile. It is a slippery slope, but there are some deductible expenses allowed in the name of self-care.
Of course, your massages and nail appointments are not deductible... but many other self-care expenses can result in a deduction. Let's briefly go over those self-care expenses that can be deducted for business purposes.
A Relaxing Home Office
This deduction is a must! Please decorate your office, hang the pictures and order the glittery pens with matching notepads. Maybe you need an air diffuser too. Office supplies and decorations are 100% deductible. So, in the name of self-care, make your home office the most relaxing and comfortable place ever.
Keep in mind, office supplies and decorations do differ from everything else, like rent, mortgage interest, utilities, and any repair expenses during the year. You can deduct these workspace costs too, but it isn't always 100%. I'll break the home office deduction down for you.
There are two different ways to calculate the home office deduction. The simplified way, or the standard way. The simplified option allows you to deduct $5 per square foot...up to 300 square feet, and the standard option is based on actual office space used. So if your home office takes up 10% of your house's square footage, 10% of those housing expenses for the year may be deductible.
We All Still Have So Much to Learn
It is no secret that we entrepreneurs don't know it all. As an entrepreneur, the business landscape is always changing. We have to stay on top of the latest learning in our respective fields. Learning is a real form of self-care because you are making yourself better - so, cheers to becoming a better female entrepreneur and growing your expertise forever!
Business development courses are not cheap, thankfully they are 100% deductible. These costs include things such as tuition, books, supplies, lab fees, transportation to and from classes, and related expenses. But let's keep in mind the course or class must be related to your existing business. You cannot deduct your yoga classes if you own a bakery shop. However, if you are a self-care blogger writing a blog on yoga, then that yoga class is deductible!
Did Someone say, Therapist?
Being a female entrepreneur without healthcare is kind of scary. Our bodies are so complex, and sometimes we need medical attention. Maybe you need a self-care therapy session to mentally regroup, it's deductible! The counseling must be intended to help guide mental clarity related to your business, it is a business expense and therefore tax-deductible.
Side note: You can also deduct all premiums paid for your health, dental, and eye coverage. You can also deduct premiums for children under 27 and your spouse.
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I'll Eat My Stress Away
Who doesn’t indulge in a nice meal in the name of self-care? Under the law, a meal expense that is deductible includes, while traveling for business, at a business conference, or when entertaining a client. For the 2021 and 2022 tax years, this deduction has a special twist! Typically you can only deduct 50% of these restaurant expenses, but for the 2021 and 2022 tax years, you can deduct 100%.
Keep your receipts!
We Are All in Need of a Vacation
We love the travel deduction! And who doesn't love a good vacation to relax and take the stress away? Travel expenses you can deduct include, cost of transportation to and from your destinations (plane, Uber, car rental), lodging, and meals. The transportation portion is 100% deductible, and the meals deduction follows the guidance above. You can't deduct travel expenses for your spouse, your kids, or other people unless that person is your employee.
Maybe you need a self-care trip to clear your mind for business purposes, enroll in a few business classes while you're there, and maybe visit a counselor too!
Remember, any time you're not sure whether a cost is a legitimate business expense, ask yourself, "Is this expense ordinary and necessary for my business?" This is the same question the IRS will ask when examining your deductions if you are audited.
