Ever wondered if becoming a tutor was a viable career? The U.S. Bureau of Labor Statistics (BLS) says tutoring jobs should grow by 14%. What's even better is that self-employed tutors will be half of that growth rate! So if you decide to become a tutor, consider being self-employed or an independent contractor.
As a self-employed tutor, that means you'll need to buy equipment and materials. Unfortunately, you’ll be paying out-of-pocket as you won’t have an employer to reimburse you. Since these are necessary and ordinary purchases for tutoring, they are tax write-offs. In other words, they’re tax deductions that you can claim when filing taxes. To help you, we've compiled some of the common expenses for self-employed tutors!
All expenses related to the design and marketing of your business are tax deductible such as online ads, billboards, and business cards.
Service fees paid to the bank through your business bank account related to operating your business are tax deductible.
Legal fees from your accountant or attorney directly related to operating your business are tax deductible.
Fees related to an organization or service used to find or conduct business are tax deductible.
If you use your phone for work, the purchase and monthly bill are tax deductible.
Accessories for your work phone, such as USB charging cables, are tax deductible.
Fees for conferences, seminars, and professional events are tax deductible.
Supplies you buy for the office and materials used for work are tax deductible (paper, printer ink, wood, nails, etc.).
Standard business equipment and tools used for work are tax deductible.
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If you’re an online tutor or run your tutoring business from home, you’ll want a dedicated business space to claim these home office deductions. It doesn’t have to be a large room—even a small desk works!
You can deduct necessary furniture and equipment used to run your business.
Expenses related to maintaining and improving your office space are tax deductible. For example, floor repairs or repainting the office room walls.
A part of your house rent is tax deductible if it’s used only for business purposes.
Business expenses for electricity, water, heating, waste, and internet are all tax deductible.
The cost of running your business’ website is tax deductible. This includes website hosting and domain fees.
As a home tutor, you may see yourself driving from client to client, or driving to your client’s house. Since you’re driving for business purposes, track these actual car expenses if you don’t plan to use the standard mileage deduction.
Gas for your business vehicle is tax deductible.
License and registration fees required to drive your business vehicle are tax deductible.
Business-related parking and toll fees are both tax-deductible expenses. However, parking fees paid to park at your workplace are not deductible.
Roadside assistance expenses are tax deductible. If you have a roadside assistance plan, it’s tax-deductible if your insurance plan doesn’t include it.
The insurance cost for your business vehicle is tax deductible.
Repairs and costs to maintain your business vehicle are tax deductible.
Sometimes there may be events that require you to travel away from home, such as a workshop to improve your teaching methods. Here are some tax write-offs when traveling out of town for business purposes.
You can deduct half the cost of meals with clients and meals purchased while out of town on business trips.
Transportation and accommodation expenses when traveling for work are tax deductible.
Staying at hotels and Airbnb rentals are tax deductible.