Did you know that Wag! caregivers are actually small business owners? That’s right, if you earn income through Wag, it’s earned as a 1099 contractor. This means you’re entitled to many different tax deductions that come with being a small business owner.
When it comes to tax deductions available to Wag! Caregivers, here are 6 of the best:
Did you know you can write-off miles you drive related to your work? You can take mileage deductions from things like:
However, when you're deducting work mileage on your self-employed taxes, it’s crucial to keep careful and detailed records of both on- and off-trip mileage. There are a number of ways to track your mileage, from a classic pen and paper log to using an app. An automatic mileage tracking app like Everlance can make this process a lot easier and make sure you're not missing out on mileage deductions!
There are two ways to calculate your mileage deduction:
Remember, you can deduct your mileage from your taxes even if you're planning on taking the standard deduction instead of itemizing deductions! Mileage is deducted from your gross income, so it lowers the amount of your income you have to pay taxes on before you decide whether to itemize or take the standard deduction.
Being a Wag! caregiver can also mean having a lot of supplies on hands to delight pets. Pet supplies that are tax-deductible for pet caregivers include:
Just make sure to keep careful records of what you're spending on business expenses throughout the year, including receipts! You won't be asked to provide receipts directly when you file your taxes, but if the IRS audits you, you will be required to provide detailed records.
If you use your phone for work, you can deduct the cost of your phone and your phone bill from your taxes! Using your phone for work can include things like:
When expenses are split between business and personal use, like your phone, make sure to only write off the portion of your time that’s dedicated to work.
You already know you can deduct your business-related mileage from your taxes, but did you know you can deduct other vehicle-related expenses as well? If you incur parking fees while you're out walking a dog, a toll on the way to a client, or other fees and tolls while you're traveling for work, you can deduct these expenses as business expenses on your taxes.
In order to deduct these expenses, you'll need to track them carefully. Have a lot of business expenses to track? An expense tracking app like Everlance makes keeping IRS-compliant expense records easy. Everlance can even help you automatically find business-related expenses to make sure you're saving the most on your taxes!
Of course, there's a number of miscellaneous expenses that come with keeping a business running in tip-top shape. These expenses can be deducted from your taxable income at the end of the year, too! Not sure what counts as a business expense? Some examples of things you can deduct include:
If you're self-employed and purchase your own health insurance, you can deduct the amount you pay each month for your health insurance premiums from your taxes each year.
In addition, if you have significant healthcare bills or expenses, you may be eligible to deduct these from your taxes as well. If you think you may be eligible for additional deductions, consult a tax specialist before filing your taxes!
Wag! Caregivers get 3 months of Everlance Premium for free. Claim your discount on our partner page here: Everlance for Wag! Caregivers