Is dog walking taxable?

Although the post below offers tax advice from financial experts, it’s important to remember that every business and tax situation is different. Consult your accountant to make sure you are correctly filing your taxes.

Being a business owner is a significant part of your job as a professional pet sitter, though it’s probably not your favorite aspect. The “pet part” is often the “best part” for many people because it comes naturally to them—from dog walks and cat visits to ongoing education in pet behavior, health, and first aid. Although not nearly as enjoyable for most people, the “business part” of paperwork, documentation, scheduling, taxes, and accounting is nonetheless crucial. You can save time and money by staying on top of your accounting and comprehending tax deductions for pet sitters.

In a previous PSI survey, 48% of members said they hire an accountant for their pet-sitting businesses, while 52% prefer to handle their own taxes and accounting.

It’s crucial to understand the small-business tax requirements whether you choose to work with an accountant or handle your taxes independently.

We contacted U to find out more about the “need-to-know” tax information pet care business owners should have. S. -based CPA Evan Hutcheson.

Dog Walker and Sitter Tax Deductions

Here are 11 deductible expenses that a dog walker for a business like Rover or Barkly Pets should keep track of throughout the year:

1. Mileage: Keep track of all your business-related drives. While there are many ways to do this (like taking odometer readings before and after trips), the easiest method is to use an app like Stride that records mileage while you drive:

Between your home office and walking/sitting. If you don’t have a home office used exclusively for work, your first trip from home to a client (and from your last client back home) are not deductible.

Between clients, between work-related errands, or from the client’s home to where you’ll walk/play with the dog (e.g. a dog park)

Between your home office and work-related errands, like picking up work supplies (e.g. buying a new dog harness).

You cannot deduct individual vehicle expenses like gas, oil changes, auto repairs, and insurance if you choose to take the standard mileage deduction.

2. Public Transportation: If you take the bus or train instead of driving to your dog-walking appointments, you can deduct the cost of doing so as well as the business-related maintenance expenses for your bicycle.

3. You can fully deduct related expenses (including the cost of the phone and monthly bills) if you use your phone only for business. If you use your phone for personal purposes in addition to business, you should only deduct the business-related usage. Calculating the proportion of your calls that were related to your job and then deducting that amount from your bill is the simplest way to accomplish this.

4. Business cards: Creating and printing business cards is a marketing expense that is tax deductible.

5. Printing and Copying: Save your receipt whenever you print or copy business-related documents like brochures, flyers, and office records. The amount you spend at the printers is deductible!.

6. Business Supplies: You can deduct purchases you make for your company’s expansion and maintenance. This includes equipment like:

Poop bags

Dog treats

Walking shoes

Rain gear

Tennis balls

Treats

Leashes

The catch is that you can only use these things for your company, so don’t use your dog park balls for tennis!

7. Online advertisements, billboards, print advertisements, radio advertisements, postcards, and more are all tax deductible when it comes to promoting your business, so be sure to keep track of your expenditures.

8. Promotional Goodies: You can also deduct promotional items like branded tennis balls and poop bags that you distribute to promote your company.

9. Parking: Save your receipts any time you have to pay for parking while working because these costs are deductible. Unfortunately, parking fines and traffic infractions are not covered by this, so be careful on the road!

10. Tolls: As long as you aren’t already being reimbursed, any toll fees you pay while working are tax deductible.

11. Health Insurance: You can deduct 100% of your monthly premiums as long as you do not receive health insurance through a spouse or employer. Remember that you can only deduct the amount you pay each month (not the plan’s initial cost) if you receive a government subsidy. Please be aware that your health insurance premiums are not deductible as a business expense on Form 1040 but rather as a personal deduction.

1099 Taxes – Business Deduction Information

There are rules you must abide by when it comes to deducting business expenses:

Business expenses must be both ordinary (commonly accepted in your trade) and necessary (helpful and appropriate for your business). The expenses we list below fall into this category.

The IRS requires documentation of any business expense you deduct. That’s why it’s so important to track your expenses during the year. If you didn’t track your expenses last year, don’t worry about it because our guide shows you how to retroactively find deductible expenses.

Because there’s always a chance you may be audited, save your business receipts for at least three years after you file your taxes.

Mileage deductions

Did you know that you can deduct the miles you drive for work? Examples of things you can deduct mileage from include:

driving to and from dog walking clients

driving between clients when youre doing multiple walks

picking up a dog and bringing them to a park

However, it’s important to keep meticulous and thorough records of both on- and off-trip mileage when you’re claiming work mileage as a deduction on your self-employed taxes. There are numerous ways to keep track of your mileage, including using an app or the more traditional pen and paper log. This process can be significantly simplified by using an automatic mileage tracking app like Everlance, which will ensure that you are not missing out on any mileage deductions.

There are two ways to calculate your mileage deduction:

Actual Expense Method: calculate and deduct the actual expenses of operating your car. These expenses include gas, oil, insurance, registration, repairs, lease payments, or maintenance. For more information on the Actual Expense Method, visit the IRS’s guide.

Standard IRS Mileage Deduction: This is the easiest method and can result in a higher deduction. To use this method, multiply your total business miles by the IRS Standard Mileage Rate for business. In 2022, this would look like: 10,000 work miles x $0.585 mileage rate = $5,850 deduction.

Since mileage is deducted from your gross income, it lowers the amount of income that must be taxed before you decide whether to itemize deductions or take the standard deduction. Keep in mind that you can deduct your mileage from your taxes even if you intend to take the standard deduction rather than itemizing deductions.

Having a ton of supplies on hand to please animals is another perk of being a Wag! caregiver. Pet supplies that are tax-deductible for pet caregivers include:Â.

Just remember to keep careful records of your business expenses throughout the year, including receipts. Although you won’t be asked for receipts when you file your taxes, you will be required to do so if the IRS audits you.

FAQ

Should I give my dog walker a 1099?

You should receive a 1099 form early the following year if your revenue from Rover dog sitting exceeds $600 in a calendar year.

Is dog walking a business expense?

You can deduct mileage from such expenses as: traveling to and from dog walking clients. driving between clients when you’re doing multiple walks. picking up a dog and bringing them to a park.

What can I write off for dog walking?

• Doodoo bags. Poop bags and the little dispensers are deductible business expenses on your taxes!
• Dog treats. …
• Tennis balls. …
• Leash or harness. …
• Bike expenses. …
• Your monthly phone bills are expensive! …
• Phone & accessories. …
• Rain gear.

Is dog grooming taxable in Washington state?

Sales of tangible personal property to individuals who offer live animal grooming, boarding, training, artificial insemination, stud services, or other services are also considered retail transactions that require the collection of retail sales tax.