Taxes are an inevitable part of every freelancer’s life, but there are several deductions that can help reduce your tax burden. As a health coach, you advocate a healthy lifestyle and help people level up their fitness journeys. As a self-employed health coach, you can deduct everything from travel, meals, vehicle, and transportation costs, to fitness equipment, home office equipment, and ingredients like chia seeds.
The latter sounds odd, doesn’t it?
The food you eat at home is generally not deductible. Groceries and snacks are not included in the meal expenses either, since the IRS usually considers it as a personal expense. However, under certain circumstances, you can deduct the tax amount you spent on the groceries if they are relevant to your job as a freelancer.
Before we discuss further how to claim chia seeds as a tax deduction, let’s first look through some of the common deductions available to health coaches.
As a health coach, you are likely to spend money on marketing tactics to promote your expertise and brand. This can include website fees, flyers, business cards, t-shirts, and signs.
Any fitness equipment you bought throughout the year is tax-deductible as long as it’s used for your business and not just for personal use.
The IRS also allows tax deductions on any meetings you hold with your client over coffee, lunch, or dinner. You get to deduct 50% of the restaurant bill you pay for such meetings.
Car expense & mileage
If you use a personal vehicle to commute for your company's purposes, you can calculate the expenses incurred in the course of your business to claim a deduction.
You can either deduct a percentage of actual expenses incurred, which includes gas, insurance, depreciation, maintenance, etc., or you could claim a deduction per mile driven.
The standard mileage rate for 2021 is 57.5 cents or $0.575 per the IRS. To calculate your mileage deduction, keep track of the miles you drove throughout the year and multiply it with the standard deduction rate ($0.575).
The miles that count for your mileage deduction can include travels from the home office to the gym or the client’s home.
As a health coach, if you keep an office in your home, you can claim the home office deduction. However, the IRS insists that it must be used only for your business. So you have to prove that's where you do most of your work. The deduction amount relies on how much of the house is devoted to business.
This deduction offers you a tax write-off for items such as mortgage interest, rent, utilities, real estate taxes, maintenance, repairs, and other related expenses.
Now when it comes to groceries, generally the IRS does not permit individuals to write off food items since they are used for what we personally consume.
To count as a deduction, or write-off, an expense has to serve a rational business purpose in your line of work. The IRS’s definition of what it considers to be a business expense is an expense that is both ordinary and necessary.
So, if you feel like groceries or any other food item is necessary for your trade or business, you can claim it as a tax write-off.
For example, as a health coach, you may share different nutritious recipes on social media platforms to teach your clients about healthy eating. You can deduct the cost of groceries and other ingredients as a business expense under “supplies.” However, if your profession is not directly related to food then you cannot deduct groceries as a business expense.
Some professions can go farther and deduct the cost of groceries due to them being included in their day-to-day work.
For example, this would be the case if you have one of the following jobs:
It might sound far-fetched, but you can deduct groceries with ease as a legitimate business expense, especially with the help of the FlyFin app. The app is powered by A.I. and backed by an expert team of CPAs.
FlyFin AI automatically finds every deduction that applies to you and your profession. All you have to do is answer a few basic questions and the A.I. will provide you with a list of all the deductions that apply to you. Moreover, if you’re confused about any deduction, you can consult a CPA for free.
There are many other professions that allow you to deduct groceries as a tax write-off. Click here to find out how FlyFin can help you to take this as a deduction.
Example block quote