Navigating the world of taxes can often feel overwhelming for wellness entrepreneurs, especially when it comes to understanding what expenses they can deduct to reduce their taxable income. With so many moving parts in their business—from equipment and supplies to marketing and client services—knowing what they can and cannot deduct is crucial for maximizing their tax benefits and minimizing their liabilities.
In this article, we will cover 10 common tax write-offs that wellness business owners should consider when filing their taxes, ensuring you’re not leaving any money on the table.
1. Office Supplies and Equipment
As a wellness business owner, you’re likely purchasing supplies and equipment regularly. Whether it’s skincare products, yoga mats, massage tables, or office supplies like pens, paper, and printer ink, these business-related purchases are typically deductible.
What to Deduct:
- Office supplies (e.g., pens, paper, folders, etc.)
- Equipment (e.g., massage chairs, yoga mats, beauty equipment)
- Technology (e.g., computers, printers, phones, and software used for business operations)
Tip: Keep all receipts and records of these purchases to ensure you can substantiate your deductions.
2. Marketing and Advertising Expenses
Every wellness entrepreneur needs to market their business, whether it’s through online ads, flyers, website maintenance, or social media promotions. Fortunately, all of these marketing expenses are tax-deductible.
What to Deduct:
- Social media advertising (e.g., Facebook, Instagram ads)
- Website development and hosting fees
- Printed materials such as brochures, flyers, and business cards
- Digital marketing campaigns (e.g., Google Ads, email marketing platforms)
Tip: Track all marketing-related expenses to ensure you’re capturing all of your deductions. This is an area where business owners often miss out on significant savings.
3. Rent and Utilities
You can generally deduct your rent and utilities if you operate your wellness business out of a physical location—whether it’s a yoga studio, spa, or therapy center.
What to Deduct:
- Rent paid for office or studio space
- Utility bills (electricity, water, internet, phone, etc.)
Tip: If you also work from home and use part of your home for business purposes, you may qualify for a home office deduction.
4. Education and Training
As a wellness entrepreneur, you’re constantly learning and improving your skills to provide better services to your clients. The costs associated with continuing education or professional development are usually tax-deductible.
What to Deduct:
- Fees for professional courses, workshops, and certifications
- Travel expenses related to business conferences or educational events
- Books, courses, or materials you purchase for professional development
Tip: Always ensure that the training is directly related to your business. While general self-improvement may not qualify for a deduction, anything that directly enhances your skills for your wellness business will be eligible.
5. Travel and Meals
Whether you’re attending a business conference, meeting clients, or researching new wellness trends, travel expenses are often tax-deductible. The key here is that your travel must have a clear business purpose.
What to Deduct:
- Airfare, car rental, and public transportation costs for business trips
- Lodging and hotel accommodations for business-related travel
- Meals and entertainment (50% of the cost) related to business activities
Tip: Be sure to keep a detailed log of your business trips, including dates, destinations, and the purpose of the travel, as the IRS may require this for verification.
6. Insurance Premiums
Running a wellness business often requires several types of insurance coverage, including liability insurance, professional indemnity insurance, and health insurance if you’re self-employed. These premiums are typically deductible.
What to Deduct:
- Business insurance premiums (liability, malpractice, etc.)
- Health insurance premiums if you’re a sole proprietor or self-employed
- Workers’ compensation insurance if you have employees
Tip: If you have employees, the portion of health insurance you provide to them may also be deductible.
7. Professional Fees and Services
As a wellness entrepreneur, you’re likely working with various professionals to help manage your business. This includes accountants, attorneys, and business consultants. These fees are generally tax-deductible as long as they are directly related to your business operations.
What to Deduct:
- Accounting and bookkeeping services
- Legal fees for business-related matters
- Consulting fees for business coaching or advisory services
Tip: Keep detailed records of any services provided and make sure they are related to your business’s operations.
8. Software and Subscriptions
Most wellness businesses rely on software for scheduling, accounting, or customer management. Subscriptions to industry-specific tools or apps are deductible.
What to Deduct:
- Subscription services (e.g., QuickBooks, scheduling software like MindBody or Acuity)
- Cloud storage services (e.g., Dropbox, Google Drive)
- Professional software (e.g., photo editing for marketing or design work)
Tip: Review your subscriptions yearly to ensure you’re using all the services you’re paying for.
9. Employee Wages and Benefits
If you have employees or independent contractors, the wages you pay them are typically tax-deductible. Additionally, any benefits you provide, such as retirement plan contributions or health insurance, are usually deductible.
What to Deduct:
- Salaries or wages paid to employees
- Benefits provided to employees (e.g., health insurance, retirement plans)
- Independent contractor fees (e.g., paying freelancers for their services)
Tip: Ensure you have a system in place for tracking employee wages and benefits to ensure proper deductions.
10. Home Office Deduction
You may be eligible for the home office deduction if you run your wellness business from home or use part of your home exclusively for business purposes. This can include a portion of your mortgage or rent, utilities, and maintenance costs based on the percentage of your home used for business.
What to Deduct:
- A percentage of rent or mortgage interest
- A percentage of utilities (electricity, internet, etc.)
- Home maintenance costs (repairs, cleaning, etc.) related to the office space
Tip: To qualify for the home office deduction, the space must be used exclusively or regularly for business purposes.
Bottom Line
Tax deductions are a great way to minimize your taxable income and maximize your savings as a wellness entrepreneur. By keeping track of eligible expenses and understanding what can be deducted, you can ensure that you’re taking full advantage of the tax benefits available to you. Make sure to keep organized records and consult with a tax professional to ensure you’re making the most of your deductions and remaining compliant with tax laws.
Helpful Resources:
IRS (Internal Revenue Service)
- The IRS website is the best authority on tax deductions for businesses, including wellness entrepreneurs. You can link to relevant pages that explain deductions for business owners or provide general guidance on business tax deductions.
- IRS – Business Expenses
Small Business Administration (SBA)
- The SBA provides helpful guides for small business owners, including specific tax deductions and how to navigate them.
- SBA – Tax Credits for Your Business