Tax Deductions for Housekeepers
At tax time, anyone who is employed as a housekeeper, including janitors and custodians will be required to pay income taxes. As an employee of a company, housekeepers will receive a Form W-2, Wage and Tax Statement, which lists tax withholdings and earned income. If you are not employed by a company, but perform housekeeping services on your own, you are considered self-employed. Self-employed individuals are still required to report their income to the government, generally using a Schedule C, Profit and Loss from Business.
Self-employment tax is applicable on net earnings over $400, and may be required to be paid through estimated tax payments throughout the year.
Deductions lower your tax liability and can help you recoup some of the money spent on job-related expenses such as:
- Uniform cost and maintenance, provided the uniform is a requirement of the job and is not suitable to be worn as everyday street wear
- Supplies, such as cleaning solutions, etc. that you are responsible to provide
- Licensing/bonding fees after the initial one is obtained
As long as the expenses have not been reimbursed by an employer or other third party, you can claim deductions on them. Self-employed housekeepers should deduct expenses on a Schedule C, while employees should list them as miscellaneous itemized deductions on Schedule A. You'll need appropriate documentation, such as receipts, for each expense claimed.
