How to File Taxes as a Doula

Filing Taxes as a Doula

As we approach 2022, business owners in all industries are beginning to wrap up their finances for the past year and plan for the future. One of the most critical tasks that comes with a new year is also one that can be intimidating: doing your taxes. As business owners and independent contractors, doulas have a lot more to consider than the average person during tax season. While Birthbase can’t do your taxes for you, we have compiled some of the most important things to keep in mind to maximize your returns and preserve your sanity.

Know Your Deductible Expenses

Throughout the year, you will undoubtedly put money into your business to improve your marketing, offerings, and overall profit. The good news about these investments is that most of them can be claimed as deductions on your taxes!

Some common deductions that doulas can take advantage of include:

·         Books and continuing education courses

·         Certification and re-certification fees

·         Business cards and other marketing materials

·         The cost of websites and social media tools

·         Expenses related to phone, internet, and office supplies

·         Anything you use at a birth: clothes, shoes, food, equipment, etc.

·         Mileage

·         Insurance costs

This is just a sample: anything you spend money on related to your business can be applied as a deduction. Even a subscription to Birthbase!

Track Every Dollar  

When it comes time to do your taxes, the last thing you want to do is have to track down every transaction from the entire year. Instead, throughout the year you should keep track of every dollar you spend and every dollar that you earn. You can do this with a simple spreadsheet or through a tool like Quickbooks, depending on how complex you want to get. It even works to use a notebook and a folder- as long as you have an easy way to get to the information when you file.

This also means you need to save every receipt. It can be helpful to write on the receipt with information about what you were doing or who you were with so that you remember when the time comes.

Some things are more complex to track, like mileage. While the government will let you deduct miles placed on your car, there is obviously not a receipt you can use to show this. Many apps exist to help you keep track of mileage as you go so that you have a single line item at the end of the year.

Take Taxes Seriously

While they aren’t a fun task, taxes are an important part of being a business owner. Paying taxes is part of your responsibility and you should always make every effort to be accurate and thorough when doing so. For some doulas, this means hiring an accountant to help you through the process. It may even be good networking to ask other doulas who they use that might be familiar with the business model!

Programs like TurboTax are also sophisticated enough that, if you have properly tracked your expenses and understand them, you can likely file on your own. Just make sure you start early enough that you can answer any questions and account for every dollar without missing the deadline.