Advertising Expense

• You probably need to advertise your business throughout the year. You can claim advertising expenses such as business cards, website setup and maintenance, printing and paper expense for fliers, phone book ad fees, radio ads fees and newspaper ad fees. You can even deduct the cost of an ad placed in a school yearbook or special event program.
  
  

Supplies and Equipment

• The bulk of your expenses will be for hair supplies. Such supplies include scissors, clippers, combs, brushes, mirrors, hair products, hair dye, capes, hair dryers, curling irons and straightening irons. Also make sure to claim purchases such as hair washing bowls, hair washing sinks and swivel chairs.
  
  

Legal Expenses

• Cosmetologists can deduct legal expenses such as fees required to obtain cosmetologist licenses and business licenses. Also, you deduct fees paid tax preparation and premiums paid for personal liability insurance.
  
  

Other Expenses

• If you rent a booth at a salon, you can claim the rent you pay each year for the booth. If you work out of your home, you can claim a home office expense. Other business expenses that you can claim include continuing-education classes, hair shows, hotel charges, plane tickets, meals and entertainment, hair magazine subscriptions, appointment books, pens and postage and envelopes for mailing business-related correspondence. If you employ other cosmetologists or helpers, you can deduct employee salaries and health insurance premiums you pay for them.