theCut

Tax Prep

Know your
STATUS

Your tax situation depends on how you work. Start here.

Quick Answer

Barbers file taxes based on their work status: shop owners and 1099 contractors pay self-employment tax and quarterly estimates, while W-2 employed barbers have taxes withheld by their shop. Tax day for the 2026 tax year is April 15, 2027.

Last updated: May 2026

01 / Know Your Status

Consider your
tax situation

How you work determines what you owe, when you file, and which forms you need. Find your situation below.

Shop Owner

Shop Owner

Sole Prop / LLC / S-Corp

You own and operate the business. Choose your entity type, pay self-employment tax, and file quarterly estimates.

Your Situation

As a shop owner, you have business income to withhold taxes from on a federal, state, and local level. Depending on the type of business you run, you may also need to pay payroll taxes for any employees. The structure of your business, sole prop, LLC, S-corp, determines how you file and how much you owe.

Taxes You Owe

Self-employment tax, federal income tax, state and local income tax, and (if you have employees) payroll taxes. Self-employment tax covers Social Security and Medicare.

Employed Barber

Employed Barber

W-2 Employee

You're a W-2 employee. The shop withholds federal and state taxes and pays half of your FICA.

Your Situation

Barbers employed by a shop receive a W-2 and have taxes withheld each paycheck. Your filing is simpler because your employer reports your wages and withholding to the IRS. You're not responsible for self-employment tax, your employer covers their half of Social Security and Medicare.

Taxes You Owe

Your share of federal, state, and local income tax. Your employer takes care of FICA withholding and pays the employer share.

Contracted Barber

Contracted Barber

1099 Contractor

You're an independent contractor. Track all income and expenses, file Schedule C, and pay quarterly estimates.

Your Situation

As an independent contractor, you're responsible for tracking your own income, paying self-employment tax, and making estimated payments throughout the year. You won't have an employer withholding for you, so it's on you to set money aside and stay current with the IRS.

Taxes You Owe

Self-employment tax (Social Security + Medicare) plus federal, state, and local income tax. Estimated payments are typically required quarterly using Form 1040-ES.

02 / Filing Thresholds

Do I need to file?

The general income rules from the IRS require filing a tax return if your income exceeds the following thresholds for 2026.

Single, under 65$16,100
Single, 65 or older$18,100
Married filing jointly, both under 65$32,200
Married filing jointly, one spouse 65 or older$33,800
Married filing jointly, both spouses 65 or older$35,400
Married filing separately, any age$5
Head of household, under 65$24,150
Head of household, 65 or older$26,150

Source: IRS Publication 501

03 / Deadlines

When do I file?

Tax day is April 15, 2027 for the 2026 tax season, but if you're self-employed you likely owe estimated payments throughout the year. Paying quarterly via Form 1040-ES means you won't owe a large lump sum, and may get a refund if you over-paid.

April 2026

15TH

Q1: January – March 2026

June 2026

15TH

Q2: April – May 2026

September 2026

15TH

Q3: June – August 2026

January 2027

15TH

Q4: September – December 2026

04 / The Basics

Components of your tax return

Revenue

Gross income: all the money you collected from barbering, including tips. If you used theCut, your bookings flow through the app so you can pull a year-end report and reconcile against your other records. Track every dollar that hits your business.

Expenses

Anything you spent to operate. Booking software, chair rent, supplies, clippers, capes, products, travel to clients and events, advertising, phone and internet (portion used for business), continuing education, and professional fees. Use the Service Calculator and Policy Calculator to project the revenue side of the equation.

Deductions

Allowable expenses you can subtract from your revenue to lower your taxable income. Most ordinary and necessary business costs qualify, keep clean records, save your receipts, and file digitally so nothing slips through the cracks at tax time.

05 / Write-Offs

Deductions for barbers

Business Costs

Booking software, accounting, advertising.

Shop Supplies

Clippers, shears, capes, products, towels.

Professional Fees

Licenses, CE classes, expos.

Equipment

Chairs, mirrors, station setup.

Travel (Mobile)

Mileage to clients & events.

Miscellaneous

Work clothing, phone/internet portion.

FAQ

Frequently Asked Questions

This page is for informational purposes only and does not constitute tax or legal advice. Tax laws change frequently, consult a qualified tax professional for guidance on your specific situation.