As a freelance housekeeper, you can significantly reduce your taxes by deducting what you spend to keep your business running from your taxable income. But the question remains: what is actually considered a work expense? If you help make the world a cleaner place, here’s a list of expenses you’re most likely able to include in your business expenses.
Your Cleaning Products
- Cleaning solutions of all kinds (window, floor, bathroom, dishes, laundry…)
- Brooms, sponges, towels, wipes,
- Spray bottles, buckets,
- Vacuum, filters,
You got it: pretty much everything you bring with you on the job to clean is a business expense. Make sure to separate the products you use for your work and the ones you use for your home – these would be considered personal expenses.
Your work phone and phone plan
- Cost of your device,
- Your cellular and data monthly plan,
- Phone covers,
- Phone stand
Your phone is what you need to get in touch with clients, organize your schedule and find your route. Without your phone, you wouldn’t be able to work, so everything you spend on your phone is a business expense.
If you use public transportation to go to your clients’ homes or offices, the costs of the tickets are deductible.
If you use your own car, keep a log of your trips, and you can deduct 56 cents per mile you drove for business purposes. To find out more about how to calculate your car expenses, click here.
If you print flyers or business cards to promote your business, these costs are deductible.
If you create a website, all costs associated with it (hosting, domain…) are also deductible.
In short, everything you spend to spread the word about your business should be deducted from your taxable income.
If you’re paying a commission or a subscription fee to services like Handy or a booking agency, you should deduct it from your income, but only if you’re paying with your own money. If the commission is deducted at the source before you get paid, there’s no need to deduct it.
If you subscribe to an insurance policy to protect yourself in case something happens while you’re on the job, the premium you pay monthly is deductible.
Also, if you buy your own health insurance, as a self-employed your premiums are also tax-deductible.
If you use an accountant to help you with your taxes, their fee is deductible.
If you pay a monthly fee on your business bank account, it’s deductible (Also, you really should consider opening a Lili account since it has no monthly fee!)
When you come home from cleaning all day, the last thing you want to do is deal with your expense reports, yet keeping track of your business expenses can save you hundreds of dollars every year. With Lili, you can take care of categorizing your expenses with a simple swipe, anytime, anywhere, directly from your phone, while you wait in line at the grocery store or during your well-deserved coffee break.
For more details and information, please refer to this IRS article regarding business expenses.