Whether you are an established owner of a plumbing company or are just in the beginning stages of running your business, saving money and spending it wisely matters. Tax season is synonymous with owing money, however, if you are a business owner, one of the perks of tax season is that you have a lot of tax deductions at your fingertips which can help you to save in the long run. At Barta Busines Group, an accounting and bookkeeping firm for small businesses, we have put together a list of tax deductions for plumbers that you need to take advantage of.

Tax Deductions for Plumbers: What You Need To Know

You may claim deductions for job-related expenses, provided they have not been reimbursed. This will lessen the amount of taxes you owe. In most cases, these deductions can be claimed as miscellaneous itemized deductions on a Schedule A. Ensure you have receipts to serve as proof of your expenses in case of an audit. Plumber related deductions include:

• Union dues or trade association fees
• Insurance costs for liability protection
• Fees for trade publications and journals
• Any equipment specialized to the trade and replaceable within a year
• Certain safety equipment like steel-toed shoes
• The cost of maintaining, purchasing, and cleaning uniforms, as long as they are required and not able to be worn as everyday attire
• Any licensing charges, as long as it’s not for initial certification
• Subscriptions to trade journals related to your work

Job hunting expenses during a time of temporary unemployment may also be deductible as long as you continue to seek employment in plumbing. If you hold other odd jobs while unemployed, it doesn’t affect your plumbing job search. 

Certain educational courses may also be deducted as long as they qualify. Refresher courses, courses on recent industry developments, and vocational classes are generally covered, however, classes that may qualify you for a new career or position are not deductible. 

Plumbers who are self-employed can deduct additional expenses on a Schedule C:

• Bad business debts
• Truck or car expenses to drive from site to site
• Legal fees or accounting charges
• Rental costs for certain items, such as storage trailers
• Certain traveling expenses that meet the regular requirements for travel deduction
• Advertising costs
• Repairs and maintenance on equipment
• Necessary supplies
• Personal property or excise taxes

About Barta Business Group

Most businesses are great at their craft, but not great at the financial back of the house.
Our team of bookkeeping, accounting, and finance professionals guides business owners in making better decisions, so they can focus on doing what they love in their business. We understand the peace of mind that comes from knowing your financial information is done right every time. We value being able to support businesses in turning financial data into actionable insights, so you may plot a course for your company’s future with confidence.