Massage Therapists: Deducting Aromatherapy For Tax Benefits

As a massage therapist, you can deduct a variety of business expenses to save money during tax time. These expenses include the cost of supplies such as massage oils, lotions, and aromatherapy. It is important to note that these deductions are applicable if you are self-employed and responsible for paying your own taxes. If you are an employee, your employer typically withholds taxes for you, and you may not need to file quarterly estimated tax. However, you may still be able to deduct unreimbursed business expenses with proper documentation. To ensure you are taking advantage of all eligible deductions, it is recommended to consult with a professional tax advisor or refer to the Internal Revenue Service (IRS) guidelines.

Training, Membership and Certification Costs

Massage therapy school tuition varies widely depending on the program. Most schools require 500 to 1,000 hours of training, and the costs are usually higher for programs that offer more training hours and a more comprehensive curriculum. Tuition for massage therapy school can range from $5,000 to $20,000 for a one-year program. The average massage school tuition was $13,605 in 2014, according to a study published in the International Journal of Therapeutic Massage & Bodywork.

The type of school can also affect the cost of tuition. Public colleges, such as community colleges, tend to be more affordable than private colleges, but they often have stricter schedules and fewer connections with local employers. On the other hand, private massage therapy schools are more expensive but offer the advantage of specialization. They can focus their resources on establishing better relationships with local employers and typically have higher pass rates on the Massage and Bodywork Licensing Examination (MBLEX).

In addition to tuition, there are other costs to consider when enrolling in a massage therapy program. Textbooks and supplies can cost between $600 and $750, and you may also need to purchase a massage table, which can range from $200 to $3,000. Some schools charge additional fees, such as application fees, and require students to pay for student liability insurance, which is typically inexpensive.

When considering the cost of massage therapy training, it is important to balance the expenses of your education with your future income potential. According to the U.S. Bureau of Labor Statistics, the median annual salary for a massage therapist was $43,620 in 2020. It is worth noting that recent graduates often earn lower incomes, and it may take several years to establish a solid client base.

To help with the financial burden, accredited massage therapy schools may offer financial aid to those who qualify. Federal financial aid may be available if you attend an accredited massage school, but each case will differ depending on individual circumstances. Higher-cost programs are more likely to provide financial aid, while some lower-cost schools keep their tuition low to reduce the need for student loans. Payment plans are also sometimes offered directly by schools.

Overall, the cost of massage therapy training can vary significantly, and it is essential to research and compare different programs to find one that fits your budget and career goals.

Business Startup Costs

Starting a massage therapy business requires careful planning and budgeting. Here are some essential considerations for the business startup costs:

Equipment and Supplies:

• Massage tables, chairs, and sheets are essential for your practice. The cost of a massage table can vary from $225 to $3000, depending on your budget and preferences.
• Linens, including sheets, towels, and blankets, are necessary for hygiene and client comfort. Plan for at least two days' worth of linens to avoid frequent laundry. This can cost between $160 and $450.
• Massage lotions, oils, and aromatherapy products are crucial for the service. Oils and lotions can be purchased in bulk to save costs, typically ranging from $25 to $85.
• A rolling stool for the therapist is important for comfort and ease of movement during the massage. These typically cost around $100-$250.
• Bluetooth speakers can enhance the ambiance with calming music. They are available for as little as $30.
• Lighting and decorations can create a relaxing atmosphere. You can allocate around $100 for these items.

Licenses and Permits:

• Obtaining a license to practice massage therapy is a requirement and varies by location.
• A business license may also be necessary, depending on your area.

Initial Setup Costs:

• If you plan to open a clinic or rent a space, you'll need to consider the down payment and first month's rent or mortgage.
• Renovations or modifications to the space to comply with regulations and ensure client privacy may be needed, especially for home-based businesses.

Technology and Software:

• Clinic management software is essential for organizing paperwork, scheduling appointments, and marketing your business. Prices range from $8 to $300.
• A website is crucial for online presence and attracting potential clients. Costs can vary from free options like a Facebook page to more expensive custom websites.

Insurance:

Liability insurance is essential to protect your business and assets in case of accidents or injuries during treatment. The cost typically falls between $97 and $350.

Marketing and Advertising:

• Marketing materials such as business cards, brochures, flyers, and gift certificates are necessary for promoting your business. These can cost around $25 to $300.
• Advertising costs may include placing ads in local papers, online platforms, or other mediums to reach potential clients.

Other Operational Costs:

• Laundry service or equipment for cleaning linens and towels.
• Utilities such as electricity and water bills, especially if you have a physical clinic space.
• Transportation costs for mobile massage businesses.
• First aid kit supplies for any minor injuries or accidents during treatments.

Ongoing Costs of Doing Business

As a massage therapist, there are several ongoing costs of doing business that you can deduct from your taxes. These include:

• Renting an office, studio, or spa space
• Associated costs with the space, like electricity and water bills
• Cost of supplies like massage oils, lotions, and aromatherapy
• Legal costs, accounting fees, and tax preparation fees
• Advertising and marketing expenses

If you run your massage therapy business out of your home, you may be able to claim a portion of your home expenses, such as rent, homeowners' insurance, and utilities, as business deductions.

Advertising and Marketing Expenses

As a massage therapist, you can deduct a variety of advertising and marketing expenses. These include:

• Ad placement costs, such as ads in the local paper.
• Web hosting and domain registration costs.
• Brochures, blog posts, workshops, and email marketing.
• Social media marketing, including client testimonials, behind-the-scenes content, and live sessions.
• Limited-time promotional offers and discounts for first-time clients.
• Loyalty programs, where repeat clients are rewarded with discounted rates.
• Business cards.
• Printing and copying costs for marketing flyers, brochures, and office records.
• Promotional items, such as pens.

It's important to keep track of these expenses and maintain proper documentation, such as receipts, statements, or bills, to support your tax deductions.

Home Office Tax Deductions

As a massage therapist, you may be able to deduct a variety of expenses related to your home office. If you run your massage practice out of a dedicated home office that is used exclusively for your business, you can likely claim a portion of your home expenses, such as rent, homeowners' insurance, and utilities as business deductions.

To be eligible for these tax deductions, you must meet certain requirements. Firstly, the portion of your home that you use for your business must be exclusively dedicated to that purpose. This means that you cannot claim deductions for a space that is used for both personal and business activities. Secondly, you should ensure that you have proper documentation to support your claims. Keep receipts, statements, or bills for all your expenses, and maintain both digital and hard copies for easy access.

In addition to home office deductions, there are several other tax deductions that you may be able to take advantage of as a massage therapist. These include:

• Training, membership, and certification costs: You can typically deduct expenses related to obtaining and maintaining your massage therapy certification, as well as membership fees for professional associations.
• Business startup costs: If you are starting your own massage therapy business, you can deduct expenses such as equipment purchases (massage tables, chairs, sheets, etc.), renovation costs, and licensing fees.
• Ongoing costs of doing business: You can deduct a variety of ongoing business expenses, such as rent for an office or studio space, cost of supplies (massage oils, lotions, aromatherapy, etc.), advertising costs, legal fees, and accounting fees.
• Advertising and marketing expenses: Expenses related to promoting your massage therapy business, such as advertising in local newspapers, maintaining a website, or printing marketing materials, are also deductible.
• Other tax deductions: Depending on your specific circumstances, you may be able to claim additional deductions. For example, if you use your car for work-related activities, you can deduct transportation costs or mileage. You may also be able to deduct health insurance premiums, retirement contributions to a traditional IRA, and certain meal expenses that are essential for running your business.

It is important to stay informed about the specific rules and regulations regarding tax deductions, as they can change over time. Consulting with a professional tax advisor or accountant can help you navigate the complexities of tax deductions and ensure that you are claiming all the eligible expenses for your massage therapy business.

Frequently asked questions