Taxes for yoga teachers can be complicated and a boring topic, but it’s extremely important to understand for any yoga teacher working as an independent contractor. The rules are different for those who are self-employed (which you technically are as an independent contractor). There are different forms to file and taxes to pay, as well as benefits to take advantage of- which is where the first mistake comes into play.
The biggest tax mistake yoga teachers make is not deducting business expenses, such as liability insurance and travel to reduce what they owe. Primarily because they either:
1). Don’t know they’re allowed to expense business costs
2). Didn’t keep track of such expenses throughout the year
In either scenario, once a teacher decides to start deducting expenses their immediate question is “How do I track my expenses? Do I need Quickbooks or something?”
This is where teachers make the second biggest mistake: overcomplicating their method of tracking, getting frustrated with accounting software and giving up.
Which is exactly what happened with me. I gave up on my accounting and got caught with me head in the sand when April snuck up on me. Personally, I’m not a fan of Quickbooks. It’s overwhelming to learn because it’s way too complicated for my needs. I like simple, so I opt for an easy to use Excel spreadsheet. It calculates my income and tracks my expenses in categories that correlate with tax forms. This makes tax season so much easier and as I mentioned before, business deductions reduce the amount of income you pay taxes on.
If you’d like to save yourself the headache of making these mistakes, you can have the exact spreadsheet I use to track my income and expenses. The Yoga Teachers’ Guidebook To Income Taxes comes with my Income & Expense sheet, along with a Class Log sheet to track your teaching hours, class growth, and employee income. Plus, it’s full of all the other tax information you need to know as an independent contractor.
In this one-of-a-kind guidebook, I cover:
- Over 20 of the most common deductions that apply to yoga teachers, including which teacher trainings are deductible and which aren’t, if you should be deducting the cost of the classes you take, and how to expense travel to events like Yoga Journal Live.
- I discuss paying quarterly taxes
- Forms to file
- I touch on deductions as an employee
- And I explain more about recordkeeping, including how to validate your deductions because in the event of an audit, the burden of proof is on you, not the IRS.
Not to mention there’s a 30-day money back guarantee on the guidebook, so if you don’t love it, simply return it.
Don’t make the same mistakes I did and overpay on your taxes because you didn’t track your business expenses throughout the year. Get organized, get informed and take your deductions as a business.
Taxes for yoga teachers