What to Get for Tax Season

Start collecting these now so you’re not scrambling later:

• Income records: payouts, cash income, and tip totals
• Tax forms: any 1099s you receive
• Bank/card statements: ideally from a business account
• Receipts for expenses: supplies, tools, products, rent, education, licenses, insurance, phone/internet, marketing
• Mileage/travel log: if you drive for business

How to Organize Yourself

• Separate business and personal money. One account/card if possible.
• Track income consistently. Especially cash tips, write them down daily.
• Store receipts in one place. A folder or app, not scattered.
• Do a weekly 10-minute check. Match deposits, label expenses, fix missing info.

What To Do Now to Prep for Next Year

• Set a weekly money routine (same day every week)
• Keep monthly summaries (income + expenses)
• Track booth payments

‍Big Beautiful Bill

The One Big Beautiful Bill Act, signed in July 2025, introduced new tax perks that barbers should pay attention to. It created a temporary deduction for tips (2025–2028) and raised key reporting thresholds for payment apps and contractor payments.

Bottom line: barbers with clean records can benefit. Barbers who guess or don’t track may miss out.

Here’s what the bill makes more important than ever:

• Tip income must be tracked - the IRS won’t report it for you
• 1099-K forms now only trigger at $20,000 + 200 transactions
• Contractor reporting threshold rises from $600 → $2,000 (starting 2026)
• Keeping business and personal spending separate still matters

Clean books = more deductions, fewer surprises.

Messy books = missed deductions and higher risk if anything gets reviewed.

If your money is organized, this bill can put more cash back in your pocket. If it isn’t, it could cost you.

Where theCut Helps

Just like grooming keeps clients sharp, the right tools keep your business sharp. That’s why the best app for barbers, theCut isn’t just a booking tool. It’s your financial foundation.

With theCut, barbers can:

• Track every service
• Stay organized for tax season
• Receive accurate 1099-K forms
• Understand income patterns
• Build structure and stability
• Request Income Reports anytime

When your money is organized, your business transforms.When your business transforms, your life does too.