If you are a fitness professional who owns your own business, you are referred to as an independent contractor and "self-employed" for tax purposes. As an independent contractor, you have the ability to deduct a number of things from your gross income when it comes to your taxes.
With the deadline for filing your income taxes looming, here are seven things you need to know when it comes to tax deductions for fitness professionals:
- Internet and cell phone - If you use your cell phone and internet service to conduct your business, those expenses are tax-deductible.
- Conferences & Continuing Education - You may deduct any education expenses you incur that are related to certifications, classes, seminars, conferences, and continuing education courses. If you travel to conferences or seminars, you may deduct the cost of your travel expenses plus 50 percent of your business-related meals.
- Insurance - If you purchase your own professional liability insurance, the cost of your policy is a business expense and is tax-deductible. If you are self-employed, you may also deduct all or part of the cost of your health insurance.
- Equipment - You may take a deduction for the cost of any training equipment you use with your clients - weights, mats, bars, etc.
- Music - If you teach group classes and need to download music or purchase audio equipment, those costs are tax-deductible.
- Business use of a vehicle - If you use your vehicle for business purposes, you can apply the standard deduction of $0.56 per mile. Mileage should be tracked throughout the year using a mileage journal or smartphone mileage tracking app.
- Subscriptions and membership - Any costs associated with subscriptions to fitness or nutrition-related books or journals and any association membership fees are tax deductible.
This post is to be used for informational purposes only and does not constitute legal, business, or tax advice. Each person should consult his/her own attorney, business advisor, or tax advisor with respect to matters referenced in this post. ACSM assumes no liability for actions taken in reliance upon the information contained herein.