The Top Tax Tips for Yoga Teachers and Fitness Instructors
Updated: March 22, 2023
By Robyn Parets, Founder of Pretzel Kids
It’s almost that time of year again: Time to do your taxes.
And we hear ya: filing your taxes is a big old headache.
You may be wondering: Can I deduct yoga teacher training from my taxes? Or, what can I write off as a yoga teacher?
What if you turned a spare bedroom or a corner of your living room into a filming space for online yoga classes, you may be thinking: Is the space I used to teach online a tax deduction?
Or, what about the new tripod, video camera, or laptop I purchased in order to teach my online classes from home? Is that equipment tax deductible?
There’s so much for a yoga Instructor to consider at tax time, right?
Luckily, you’re not alone. Many of you have questions about what you can write off on taxes – and Pretzel Kids yoga is here to help.
Although we are not tax advisors, we can help answer this burning question: What can I write off as a yoga teacher?
But before we answer that, you’ll first need to understand the nuances between filing taxes as an independent contractor or filing taxes as an employee. This is key to figuring out whether you’re eligible for certain tax deductions at all. You can learn more about that here.
To learn more about top tax tips for yoga teachers and fitness instructors, keep on reading!
Do your research when it comes to taxes for yoga teachers
Why not use this extra time to educate yourself on tax laws? While you’re at it: consider your options. Perhaps you can do some research or connect with a tax advisor, who can help guide you through the best scenario for your particular business.
Take some time to speak with a tax professional
For starters, we recommend setting up a call with a tax advisor or accountant. Explain your situation and ask for their best advice.
Know your tax filing options
Once you speak to a tax professional, determine whether you want to file your taxes on your own using tax prep software like TurboTax or H&R Block. Or, if it all seems too overwhelming, hire a tax preparer to do it for you.
Gather a list of all your tax deductible expenses
Here is a list of 5 common top tax deductions for yoga teachers.
1. Home office (or space you use to teach yoga!)
If you are using a home office to handle your administrative tasks, you may be able to deduct home office expenses even though you don’t have a separate “office” in your residence. In fact, you can allocate a corner of your dining room or even your bedroom as your work space. According to the IRS, you can deduct a portion of your rent or mortgage for the room or space that is used exclusively for business purposes.
2. Home office supplies, equipment and furnishings
Talking about a home office, you can also deduct expenses related to the purchase of home office supplies and computer equipment. This bodes well if you purchased equipment or a new laptop for filming classes on Zoom or digital downloads. And, don’t forget about smaller everyday office supplies like printer paper, notebooks, paper clips or anything else you need to run your business. These are all typically deductible, too.
3. Yoga Insurance
This is an expense that is often overlooked, especially if you’re a newbie instructor. Yet, fitness liability insurance is crucial! And because we know how important insurance is, Pretzel Kids offers a special discount for you to get covered by our partner BeYogi.
4. Yoga Education Expenses
Are you a fitness instructor planning on enrolling in niche yoga training or a kids yoga teacher training? Do you want to take online courses to further your education, such as the Pretzel Kids Yoga Method Course? Well, you may be able to deduct the amount you spend as these are educational expenses to further your career. (Courses you take to change your career are not typically deductible. Read on for more details.)
5. Professional service fees
Are you planning to hire a web designer, social media expert, business coach, or even an accountant to handle your bookkeeping? If so, you can usually deduct these professional fees. You can also typically deduct fees for other professional services, like the Pretzel Kids Teacher Association (PkTA), which provides business resources and tools to run your children’s yoga classes. (this can also sometimes be categorized as a subscription or dues – also usually tax deductible).
These are just a few of the tax deductions you should be aware of. Here is our full list of top tax deductions for yoga teachers.
What if you took a yoga teacher training online? Can you deduct your training fee?
We touched on this above, but it is worth delving into this in more detail – especially as you may be enrolled in an online RYT-200 course. And, what if you took an online kids yoga certification course or other specialty yoga workshop to enhance their education?
Your question might now be: Is my yoga teacher training course tax deductible? Unfortunately, there is no easy answer as tax laws are complicated. This means that sometimes you can deduct your yoga training costs; other times, you cannot, according to TaxAudit.
A situation when you can’t deduct your yoga teacher training fees:
- When you are planning to use your yoga teacher training to launch a whole new career.
For example, if you’re a waitress or a lawyer and take a yoga teacher training course with the intention of changing jobs and becoming a yoga instructor, your course tuition is NOT generally deductible on your taxes. That’s because it qualifies you for new work.
If this is a bit frustrating, think of it this way: If you go back to grad school to earn a new degree, you generally can’t deduct that either.
A situation when you can deduct your yoga certification course fee:
- When you take a yoga certification course to enhance skills required to do your job.
So, say that you’re a group exercise instructor, an adult yoga teacher with an RYT-200 certification, a kindergarten teacher, or a camp counselor.
In this case, if the yoga teacher training will improve upon your skills and you are an independent contractor in a related field, your certification course may be tax deductible.
Again, we’re not tax advisors, but the Pretzel Kids Yoga Teacher Certification Course+PkTA often meets the criteria above.
We hope these top tax tips for yoga teachers will help you save some money this year. As a final pro tip, don’t wait until the last minute to organize and file your taxes. Use this time to prepare and understand where and how you can earn and can save more money as a yoga instructor.
Also, remember that it’s recommended to contact a tax advisor to answer all your specific questions about your yoga business!
You’ve got this ?.
Robyn Parets is the founder of Pretzel Kids.