While nail technicians, eyelash technicians, makeup specialists, and barbers all share a focus on beauty and personal care, many of them also share the characteristics of being small business owners or independent contractors.

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This has significant implications, particularly when it comes to finances and taxes:

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• Self-Employment: Many of these professionals work for themselves, either by renting a booth in a salon, operating their own studios, or providing mobile services. This means they are considered self-employed for tax purposes.

• Business Income: They receive income directly from clients for the services they provide. This income is considered business income and must be reported to the IRS.

• Tax Obligations: As small business owners, they are responsible for:

  • Self-employment taxes: This includes Social Security and Medicare taxes, which are typically split between the employer and employee. Since they are both, they pay both halves.

  • Income tax: They must pay federal income tax on their net profit (income minus expenses).

  • Estimated taxes: They may need to make estimated tax payments throughout the year to avoid penalties at tax time.

  • State and local taxes: Depending on their location, they may also be responsible for state income tax, sales tax, or other local taxes.

• Deductible Expenses: They can deduct various business-related expenses to reduce their taxable income, such as:

  • Supplies (nail polish, lash extensions, makeup, hair products)

  • Tools and equipment

  • Rent for booth or studio space

  • Marketing and advertising costs

Continuing education and training

• Business Insurance

 

Therefore, a key commonality among nail techs, eyelash techs, makeup specialists, and barbers is that many operate as small business owners or independent contractors, making

them responsible for managing their business finances and fulfilling their tax obligations.