< Back to IRS

Laila Fury

What expenses can I deduct as a 1099 nail technician working in someone else's salon?

I'm a nail tech at a local salon where the owner has me classified as an independent contractor. I get a 1099 at the end of the year instead of a W-2, even though my work situation feels exactly like being an employee - I show up to the salon, do nails all day, and go home. I don't feel like I'm running my own business at all. I've heard I can claim a ton of deductions since the IRS views 1099 workers as business owners. People tell me I can write off travel expenses, meals while working, and even part of my rent since I'm technically self-employed. It sounds almost too good to be true. Can I really write off most of my daily expenses? I work 50-hour weeks (10 hours a day, 5 days a week), so I eat two meals during each workday. I take the subway to and from the salon daily. Plus I have my apartment rent and all my nail supplies. Is there some limit to what I can deduct? How would I prove my lunch was a "business expense" versus just me eating? Same with transportation - how do I show which subway trips were for work versus personal? The whole thing seems incredibly vague with no clear boundaries. Would appreciate any advice from those who understand self-employment taxes!

First, I should point out that it sounds like you might be misclassified as an independent contractor when you should actually be an employee. If your boss controls when, where, and how you work, you might want to look into that situation separately with the IRS using Form SS-8. That said, as a 1099 contractor, you can absolutely deduct legitimate business expenses, but there are clear rules about what qualifies. Here's what you should know: For transportation: You can deduct the cost of traveling between business locations (like from one work site to another), but not your regular commute from home to your regular workplace. So your daily subway trips to and from the salon aren't deductible. For meals: You can deduct 50% of business meals when you're meeting with clients or traveling for business, but your regular lunch or dinner during your workday isn't deductible just because you're at work. For supplies: This is your best deduction opportunity! All nail supplies used for work are fully deductible. Keep receipts and logs of what you purchase. For rent: You cannot deduct your home rent unless you have a dedicated home office used exclusively for business purposes (like storing inventory or doing business administration). Your regular living space isn't deductible. Document everything with receipts, maintain a mileage log for any business travel, and consider working with a tax professional who specializes in self-employment taxes.

0 coins

Simon White

•

Wait so would she be better off filing as a misclassified employee? Wouldn't she lose all the deductions then? Also curious about the home office deduction - if she does her nails bookkeeping and inventory management at home, would that qualify?

0 coins

Filing as a misclassified employee could potentially get her employer in trouble, but it would mean she'd only pay half the self-employment tax (7.65% instead of 15.3%) as the employer would cover the other half. She'd lose deductions but might come out ahead financially depending on her situation. For the home office deduction, she would need a space used exclusively and regularly for business purposes - meaning a dedicated area used only for business activities like bookkeeping, scheduling appointments, or storing supplies. A desk in the corner of a bedroom might qualify if it's used exclusively for business, but the entire bedroom wouldn't qualify if she also sleeps there.

0 coins

Hugo Kass

•

I was in a similar situation working as a massage therapist at a spa but classified as 1099. I struggled with tracking all my expenses until I found taxr.ai (https://taxr.ai) which literally saved my tax situation! It analyzed my bank statements and helped identify potential business expenses I was missing. The tool was super helpful for categorizing my expenses properly - it flagged which meal expenses could actually count as business meals (the ones where I was meeting with product suppliers or discussing business with other professionals) versus just my regular lunch. It also helped me document my travel properly by separating commuting (not deductible) from actual business travel (deductible). The best part was it helped me properly calculate my home office deduction based on the percentage of my apartment I was using exclusively for my business admin and supply storage. Before using it, I was worried about claiming too much or too little.

0 coins

Nasira Ibanez

•

Does it actually help with 1099 worker classification? My situation sounds like the OP's where I should probably be W-2 but the company made me 1099 to save money. Would this help me figure out if I'm legitimately self-employed or not?

0 coins

Khalil Urso

•

I'm skeptical about these automated tax tools. How accurate is it for niche situations like nail techs? Does it understand industry-specific deductions? And does it help if you get audited?

0 coins

Hugo Kass

•

It actually provides a worker classification analysis based on IRS guidelines that helps determine if you should be 1099 or W-2. It asks questions about how much control you have over your work schedule, whether you bring your own tools, if you can work for multiple businesses, etc. This helps clarify your proper status. It's surprisingly good with industry-specific situations. For beauty professionals, it recognizes things like professional license fees, continuing education, specialized tools and products as legitimate deductions. The system is trained on tax court cases and IRS guidance specific to personal service providers like nail techs and massage therapists.

0 coins

Nasira Ibanez

•

Just wanted to follow up about my experience with taxr.ai - I decided to try it after asking about it here. It confirmed I was being misclassified as a 1099 worker when I should be W-2. The tool helped me document exactly why (based on IRS control factors) and even prepared the paperwork I needed to address this with both my employer and potentially the IRS. In the meantime, it helped me properly document all my legitimate business expenses so I could maximize my deductions while still on 1099 status. Found about $3,200 in deductions I would have missed! It flagged which expenses were definitely business-related, which were personal, and which were in the gray area where I needed more documentation. For anyone in a similar situation as a beauty professional on 1099, it was definitely worth checking out.

0 coins

Myles Regis

•

If you're dealing with tax questions about your status as an independent contractor vs employee, you might want to call the IRS directly to get official guidance. But we all know how impossible it is to reach a human at the IRS... I was in a similar situation (hairstylist classified as 1099) and spent WEEKS trying to get through to the IRS. Then I found Claimyr (https://claimyr.com) which got me connected with an actual IRS agent in under 20 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent was able to explain exactly what forms I needed to file if I believed I was misclassified (Form SS-8 for determination and 8919 for the tax return). They also clarified which deductions were legitimate for my situation even while I was still classified as 1099. Saved me from potentially claiming deductions that could have triggered an audit.

0 coins

Brian Downey

•

How does this service actually work? It seems sketchy that they can get you through to the IRS when nobody else can. Do they have some special access or connection?

0 coins

Khalil Urso

•

Yeah right. I've heard these claims before and wasted money on "services" that don't deliver. The IRS phone system is deliberately designed to keep people out. I'll believe it when I see actual proof this works consistently.

0 coins

Myles Regis

•

It's actually pretty straightforward - they use an automated system that navigates the IRS phone tree and waits on hold for you. When an actual agent picks up, you get a call connecting you directly to that agent. It's not special access - just technology that handles the frustrating wait time for you. They don't claim to give you any special treatment or access once you're connected - you get the same IRS agent everyone else would get, just without the hours of waiting and redials. And yes, it works consistently - that's why they let you see the live process through that video link I shared.

0 coins

Khalil Urso

•

I need to eat my words from my skeptical comment earlier. I was desperate after getting a CP2000 notice about my contractor income so I tried Claimyr. Got through to an IRS agent in 17 minutes when I had spent literally 3 days trying on my own. The agent walked me through exactly which deductions were legitimate for my situation as a contractor in the beauty industry. Turns out I could claim my professional license fees, continuing education, professional insurance, and all the supplies I purchased for my work. But they warned me against claiming regular meals and my regular commuting costs, which would have likely triggered an audit. This saved me from making some serious mistakes on my taxes. I also filed the SS-8 form the agent recommended to have my worker classification reviewed. Still waiting on that determination, but at least I know I'm doing everything by the book now.

0 coins

Jacinda Yu

•

I'm a CPA who works with a lot of beauty professionals. Here's what you need to know about being a 1099 nail tech: 1. You sound misclassified. If your boss controls your schedule, provides equipment, and dictates how you perform services, you're likely an employee. 2. If filing as 1099, you'll need to file Schedule C with your tax return. 3. Legitimate deductions include: professional licenses, specialized tools and products you purchase, continuing education, professional liability insurance, business cards, and any apps/software you use for booking. 4. You CANNOT deduct: regular meals at work, commuting from home to your regular workplace, or household expenses unless you have a qualifying home office. Keep every receipt and consider tracking expenses in an app specifically for self-employed people. Take photos of receipts immediately so you don't lose them.

0 coins

Laila Fury

•

Thank you so much! This is really helpful. I do buy my own nail polishes, tools and some supplies - sounds like those are definitely deductible. My boss does control my schedule completely though and provides the main equipment (stations, chairs, etc). Should I talk to her about the misclassification or go straight to the IRS?

0 coins

Jacinda Yu

•

I'd recommend first having a professional conversation with your boss. Explain that you've been researching tax requirements and believe you may be misclassified based on IRS guidelines. Some salon owners genuinely don't understand the difference between contractors and employees. If that conversation doesn't go well, you have the option to file Form SS-8 with the IRS requesting a determination of worker status. Be aware this will likely trigger the IRS to contact your employer. You can also file Form 8919 with your tax return to pay only the employee portion of Social Security and Medicare taxes.

0 coins

Just wondering - has anyone here successfully changed from 1099 to W2 status at a salon without getting fired? I'm in the exact same boat but afraid to rock the boat...

0 coins

Callum Savage

•

I actually managed to do this! I brought it up very carefully with my salon owner, framing it as a mutual protection issue (protecting both of us from IRS problems). I showed her an article about a salon that got hit with huge penalties for misclassification. She was resistant at first but eventually converted everyone to W2s. It helped that several of us approached her together.

0 coins

That's really encouraging to hear! Maybe I should talk with some of my coworkers first before approaching management. Was there any downside to becoming W2 for you personally? Did your take-home pay change much?

0 coins

Dyllan Nantx

•

As someone who went through a similar situation as a freelance makeup artist, I can share what I learned the hard way. The key thing everyone's mentioned about worker classification is absolutely correct - if your boss controls your schedule, provides the workspace, and you can't work for competitors, you're likely misclassified. But here's what helped me navigate the tax side while I was still classified as 1099: I kept a detailed expense log using a simple spreadsheet. Every purchase got categorized immediately - nail supplies (100% deductible), professional development like nail art classes (deductible), business insurance (deductible), vs. personal meals and commuting (not deductible). The biggest mistake I made initially was trying to deduct everything. The IRS looks for reasonableness - if you're claiming more in deductions than income, or deducting 100% of your phone bill when you clearly use it personally too, that's a red flag. For your situation specifically: focus on the supplies you personally purchase, any professional licenses or certifications, and maybe liability insurance if you carry it. Skip the daily lunch and subway costs unless you're traveling between multiple work locations in the same day. Document everything with photos of receipts stored in a cloud folder. If you do get audited, having organized records makes all the difference.

0 coins

Zara Perez

•

This is really solid advice! I'm new to this whole situation and honestly feeling overwhelmed by all the tax implications. The spreadsheet idea sounds manageable - did you use any particular categories or template? I'm also curious about the liability insurance you mentioned. Is that something most nail techs should have even if working in someone else's salon? My boss says her insurance covers everything but I'm starting to wonder if I should have my own coverage as a "contractor." The documentation tip is great too - I've been terrible about keeping receipts but taking photos right away sounds much more realistic for me. Thanks for sharing your experience!

0 coins

Paolo Conti

•

@d0c7f860b662 I'm glad this helped! For the spreadsheet, I kept it simple with columns like: Date, Description, Amount, Category (supplies, education, insurance, etc.), and Deductible % (100% for pure business expenses, 50% for mixed-use items like phone). Nothing fancy - just consistent tracking. Regarding liability insurance, yes, you should absolutely consider getting your own professional liability coverage as a contractor! Your boss's general business insurance likely doesn't cover you personally for claims related to your services. As a 1099 worker, you're essentially running your own business within their space. Professional liability insurance for beauty professionals is usually pretty affordable (around $200-400/year) and it's fully deductible as a business expense. The photo trick was a game-changer for me - I'd snap a pic right after purchase and store them in a "Tax Receipts 2024" folder on my phone. At tax time, everything was already organized and I didn't have to hunt through shoeboxes of crumpled receipts! Also consider tracking your nail supply purchases separately since those add up quickly and are your biggest legitimate deduction. Polish, files, buffers, cuticle tools - all of it counts if you're buying it yourself.

0 coins

One thing I haven't seen mentioned yet is quarterly estimated tax payments - this caught me completely off guard my first year as a 1099 worker! Since no taxes are being withheld from your payments, you're responsible for paying estimated taxes four times a year (due dates are typically Jan 15, April 15, June 15, and Sept 15). If you owe more than $1,000 in taxes at the end of the year, the IRS can hit you with underpayment penalties even if you file and pay on time. I learned this the hard way and ended up owing penalties on top of a huge tax bill I wasn't prepared for. You can calculate your quarterly payments using Form 1040ES or work with a tax professional. Generally, you want to pay either 90% of what you'll owe for the current year or 100% of what you owed last year (110% if your prior year AGI was over $150k), whichever is smaller. Also, don't forget about self-employment tax (15.3% on top of regular income tax) - this covers Social Security and Medicare that would normally be split between you and an employer. The good news is you can deduct half of the self-employment tax you pay, which helps offset some of the burden. Setting aside 25-30% of each payment you receive is a good rule of thumb to cover both income tax and self-employment tax obligations.

0 coins

Yuki Tanaka

•

This is such an important point that doesn't get talked about enough! I made the same mistake my first year - got hit with over $800 in penalties because I had no idea about quarterly payments. The 25-30% rule is spot on. I now automatically transfer that percentage from every client payment into a separate "tax savings" account so I'm not scrambling when quarterly due dates come around. It was painful at first to see that money go away, but it beats the shock of owing thousands all at once. For anyone just starting out as 1099, I'd also recommend looking into whether your state has additional tax requirements. Some states require quarterly payments too, and the due dates might be different from federal. I almost missed my state quarterly payment because I was only focused on the IRS deadlines. The self-employment tax really is a killer - that 15.3% on top of regular income tax can easily push your total tax rate to 35-40% depending on your bracket. Makes you appreciate how much employers normally contribute!

0 coins

Marilyn Dixon

•

I've been following this thread as someone who went through a very similar situation as a freelance esthetician. One thing that really helped me was keeping a detailed business calendar alongside my expense tracking. I'd note things like "purchased new nail files and cuticle nippers - $45" or "completed continuing education course on gel applications - $150" right in my phone calendar. This became incredibly valuable because it showed the business purpose and timing of each expense. When I eventually filed my Schedule C, I had a clear timeline of my professional development and supply purchases that directly related to my income. Another tip: if you do decide to address the worker classification issue with your boss, consider framing it around the risks to THEIR business. Misclassification can result in significant penalties for employers - they could owe back taxes, penalties, and interest for all the payroll taxes they should have been paying. Sometimes approaching it as "I want to help protect the business" rather than "you're doing something wrong" gets better results. The quarterly tax payment advice above is absolutely crucial. I use a simple formula: every time I get paid, I immediately move 30% to a separate savings account labeled "taxes." It's automated through my bank so I never have to think about it. Come quarterly payment time, the money is already there waiting.

0 coins

Dmitri Volkov

•

This is incredibly helpful, thank you for sharing your experience! The business calendar idea is brilliant - I never thought about documenting the business purpose of expenses in real-time like that. I can see how that would make tax preparation so much easier and provide solid documentation if there are ever questions. Your point about framing the classification conversation around protecting the business is really smart. I've been nervous about bringing this up with my salon owner because I don't want to seem confrontational, but positioning it as helping her avoid potential penalties makes so much more sense. The automated 30% savings transfer is exactly what I need to set up. I've been terrible at managing the tax side of being 1099 and keep putting off dealing with quarterly payments. Having it happen automatically would eliminate the temptation to spend that money elsewhere. One quick question - when you were documenting business purposes in your calendar, did you also take photos of receipts at the same time? I'm wondering if having both the calendar entry and receipt photo with the same timestamp would provide even stronger documentation. Thanks again for all the practical advice! It's reassuring to hear from someone who successfully navigated this situation.

0 coins

Oliver Weber

•

As a tax professional who specializes in self-employment issues, I want to emphasize something that's been touched on but bears repeating: the IRS has very specific criteria for what constitutes an independent contractor versus an employee, and your situation has several red flags for misclassification. The three main factors the IRS considers are: 1) Behavioral control (do they control how you do your work?), 2) Financial control (do you have unreimbursed business expenses, opportunity for profit/loss?), and 3) Relationship type (do you have employee benefits, is this an ongoing relationship?). Based on your description - showing up to their salon, working set hours, using their equipment - you sound like an employee. The fact that you "don't feel like you're running your own business" is actually a key indicator. Here's my advice: Start documenting everything NOW. Keep records of your work schedule, what equipment/supplies you provide versus what the salon provides, whether you can set your own rates, if you can refuse certain clients, etc. This documentation will be crucial whether you decide to file Form SS-8 for a determination or if the IRS ever audits your employment status. In the meantime, if you're filing as 1099, be conservative with deductions. Focus on supplies you personally purchase, professional licenses, liability insurance, and continuing education. Avoid gray areas like meals and transportation unless you have clear business purposes documented. Remember, getting properly classified as an employee might actually save you money even without the deductions, since your employer would pay half your Social Security and Medicare taxes.

0 coins

IRS AI

Expert Assistant
Secure

Powered by Claimyr AI

T
I
+
20,095 users helped today