Are Haircuts Tax Deductible? Find Out Now

Haircuts can be tax deductible under specific circumstances, primarily if they are necessary for your job. For example, if you're an actor or a public figure where appearance is crucial, you might qualify for this deduction. The IRS distinguishes between personal and business expenses. Haircuts typically fall under personal expenses unless you prove their necessity for your profession. Maintain detailed records and consult a tax professional to ensure compliance. In 2024, understanding these nuances can help optimize your tax savings and avoid audits.

When tax season rolls around, all self-employed folks try to minimize how much they'll pay Uncle Sam. You may be a bit worried too after you calculate your 1099 taxes and figure out how much money you'll owe.

Can you add haircuts to your list of tax deductions for the year? In fact, yes you can. It is uncommon but it is possible. In this article, we'll break down the circumstances where you can claim a haircut tax deduction for your particular job. Let's first dive into some of the IRS's rules in regards to personal expenses to necessary business costs.

Note: If you need help tracking and managing your tax-deductible expenses, try Bonsai Tax. Our app automatically scans your bank/credit card receipts to discover potential business-related expenses. With our service, users typically save $5,600 from their tax bill. Claim your 7-day free trial today.

Are haircuts a business expense or a personal expense?

The IRS does not let you deduct personal expenses from your taxes. The Court states that expenses such as:

• Haircuts
• Makeup
• Clothes
• Manicures
• Grooming
• Teeth whitening
• Hair care
• Cosmetic surgery

are not deductible. However, there are exceptions.

You cannot deduct clothes such as jeans because you can wear those pants for everyday "personal" wear. On the other hand, if you are a circus performer freelancer who needs a specific costume to perform your job or work, then you can deduct your clothing. Models, actresses, theater performers who need specific clothing, not usable for everyday wear, could claim this clothing tax deduction.

The same goes for haircuts.

How to claim a haircut tax deduction

If your line of work requires you to have a unique hairdo to perform your work, then you can deduct the cost of a haircut. U.S tax courts ruled in Hynes v. Commissioner, you cannot deduct the costs incurred for maintaining a nice appearance. For example, a news reporter who has to maintain a professional appearance on air cannot deduct the cost of a haircut or other cosmetic expenses.

Although they are related to your job or business, these costs are widely personal expenses.

For a business expense to be included as a tax deduction, you'd need to prove it was "ordinary" and "necessary" for your business. Let's quickly go over what that means exactly for U.S. tax laws.

What are ordinary and necessary deductible expenses?

An expense is "ordinary" if it is commonly accepted in your business or trade. A "necessary" expense is one that is helpful and appropriate for your trade or business. Examples include:

• Travel expenses
• Consultancy fees
• Internet bills
• State taxes
• Staff compensation

Work clothing would only qualify as a deduction if it is in line with industry standards and is necessary to run your business.

On his hit reality show "The Apprentice," The Times reported that Trump's business wrote off $70,000 for hairstyling and haircuts on their taxes. In addition, Trump deducted at least $95,464 for makeup and hairstyling for Ivanka Trump. These deductions lowered his taxable income and stirred controversy because people questioned their legitimacy.

Trump's tax records were closely monitored during his presidency. Besides the $70,000 deduction for hairstyling, Trump's business wrote off over $2.2 million in property taxes on his New York estate.

There's one instance where a judge decided in a U.S. tax court case over if clothing expenses were deductible. A West Virginia welder challenged the court's decision to not be able to deduct the cost of steel-toed boots and overalls. The court judge saw that the welder was wearing the exact clothing he was seeking to deduct in the courtroom. The judge merely asked, "are you at work?" and the ruling was upheld.

Note: If you want accounting software to organize all your business expenses for you, then try Bonsai Tax. Our app can help you maximize your tax write-offs at the end of the year and save you a lot of money. In fact, users typically save $5,600 with our service. Try a 7-day free trial here.

IRS requirements and documentation for claiming haircuts as a business expense

Understanding IRS criteria for business expense deductions

The IRS allows deductions for business expenses that are ordinary and necessary. Haircuts qualify only if they are directly related to your profession and not for general personal grooming. For example, actors or models who maintain a specific hairstyle for roles may deduct haircut costs, while most other professions cannot.

To meet IRS criteria, the expense must be essential to your business image or brand. Simply looking professional is not enough. The IRS scrutinizes these claims closely. Ensure your haircut is a unique business requirement rather than a personal choice. Consulting IRS Publication 535 for 2024 clarifies these rules.

Keep in mind that if your haircut style is common or could be considered normal grooming, the IRS will likely disallow the deduction. Always evaluate if your haircut expense is truly a business necessity before claiming it.

Documenting haircuts to support your deduction claim

Proper documentation is crucial when claiming haircuts as a business expense. Save all receipts showing the date, amount, and service provider. These receipts serve as primary proof of your expenditure. Use accounting software like QuickBooks or FreshBooks to organize these records efficiently.

Maintain a written explanation linking the haircut to your business needs. For instance, keep notes or contracts showing that your appearance is part of your professional brand or required for client presentations. This contextual evidence strengthens your case during an IRS audit.

Without thorough documentation, the IRS will likely reject your claim. Therefore, develop a habit of tracking all business-related grooming expenses with detailed records to ensure compliance and maximize your deductions.

How to report haircuts on your tax return correctly

When claiming haircuts as a business expense, report them under "Other expenses" on Schedule C if you’re a sole proprietor. Clearly categorize these costs and avoid mixing them with personal expenses. For 2024, the IRS expects precise and honest reporting to prevent red flags.

If you are an employee, haircuts are generally not deductible unless you are required to maintain a specific appearance that is not suitable for everyday life. In such cases, consult a tax professional to determine the correct reporting method and any state-specific rules that may apply.

Always review your tax return for accuracy before submission. Using tax software like TurboTax or consulting a CPA can help you correctly classify and justify these deductions, reducing the risk of audit issues.

Are tax deductions for appearances allowed?

If you deduct personal expenses on your taxes and the IRS catches this during an audit, you risk paying penalties and interest. Most returns are audited if the system flags too many red flags. This could trigger a deeper review of your deductions by an auditor.

To avoid paying fees and interest, ask yourself: Would you still take on the expense if there was no job? Is the expense useful for your professional career? Although the lines may seem blurry when business expenses relate to appearances, we provide more examples to clarify which count as work-related expenses.

Make-Up

There has been an outpour of OnlyFans content creators in recent years. Since their business relies on photoshoots and producing content related to their appearance, the make-up they use for photoshoots counts as tax-deductible expenses.

You cannot deduct makeup used for daily wear. The rules around a makeup deduction and expenses related to products for improved appearances are very stringent.

If you are a stage performer, you can write off makeup used for stage or photoshoots, but again, not if you wear the same makeup outside of work. Purchases for makeup should be bought from a professional supplier and not a drug store. A TV production company with makeup folks could deduct the cost of makeup.

Hair Stylist

The cost of a hairstylist counts as a tax deduction only if the hairstyle is strictly business-related. You need a specific look to perform your work or job. For example, you need a certain hairstyle for stage or photo shoots.

Body Oils & Skin Products

The IRS generally does not allow you to deduct the cost of body enhancements.

However, there are exceptions. A good example of this would be a bodybuilder or model trying to take a tax deduction for body oils. The merchandise to improve the appearance of the skin may qualify as a tax-deductible expense.

Between 1999 and 2001, a Wisconsin bodybuilder deducted over $14,000 for the expense of three body oils that boosted his career. The deduction was permitted as a business expense by the Court since the oils were largely advertised in bodybuilding magazines and not offered to the general public.

Dietary Supplements

Athletes cannot deduct the cost of nutritional or dietary supplements to improve performance. This is because the benefits are inherently personal. The benefits are personal as well as professional. However, they can deduct the cost of fitness trainers or coaches as a work-related business expense.

Cosmetic Surgery

The overwhelming majority of the time, you cannot claim the cost of cosmetic surgery as a tax deduction. However, in extreme circumstances, changes to your appearance may indeed qualify. For instance, in 1994 the Court allowed an exception in the case of Cynthia S. Hess. She was a self-employed exotic dancer in Fort Wayne, Indiana. She was able to claim the cost of breast augmentation surgery as it was a requirement for her profession and it made her more successful. The surgery was deemed unsuitable for day-to-day use. Hess could claim the deduction based on the grounds of her reducing her breast once her stage career was over.

Work Clothing

This is a commonly rejected write-off. Clothing qualifies as a write-off only if the work attire is essential to your business and matches industry standards. New suits or nice dresses do not qualify as tax deductions. Clothing expenses that may qualify include protective uniforms and costumes. If attire is suitable for everyday wear, you cannot deduct the expenses.

How to prepare for tax season with business expenses

We hope this article cleared the lines between personal and business expenses. Don't try to be sneaky and deduct personal expenses from your tax return to stay away from paying taxes. If you get caught, the IRS will make you pay harsh penalties.

Personal maintenance expenses such as skin care, hair salon services, and other body maintenance expenses are not deductible. However, if your job or freelance business requires you to buy makeup, hair supplies, contact lenses, or similar items, these can be deducted as business expenses if they meet specific requirements:

1. They are not suitable for everyday use
2. The purchases can be shown to be used primarily for business use

If you don't meet the qualifications of those two rules, the chances are, the expense is probably personal and is not deductible. Also, if a taxpayer claims a large deduction in a category more than the average person in a profession, it may trigger an IRS tax audit.

The IRS approves tax deductions for maintaining or changing personal appearance only in certain professions and under strict conditions. The rules for deducting makeup and haircut expenses are very strict.

Note: if you want an app to discover expenses from purchases that could be deducted, then try Bonsai Tax. Our 1099 expense tracker will do all the work for you and maximize your tax savings. It'll track all your qualified deductions with clean records in case you ever get audited. Claim your 7-day free trial today.

If you have any questions in regards to IRS tax laws, if haircuts count as a tax-deductible expense, or filing your tax returns, we always recommend you seek tax advice from a professional accountant. An accountant's service can help you stay compliant under the constantly changing tax laws. This post is to be used for informational purposes and is NOT legal advice.