Tax Deductions for Cleaning Businesses in the USA: Everything You Need to Know

Sujon
May 2, 2023
Cleaning business owners strive to keep buildings clean and organized, often working long hours and performing physically demanding tasks. Fortunately, the U.S. tax code recognizes the importance of your work and allows you to claim certain tax deductions related to your job.

Let’s get into the specifics and discuss some tax deductions for janitors.

Uniforms and Protective Clothing

Uniforms and Protective Clothing- Janitorial Leads Pro

If you work as an employee for a cleaning company, you may be required to wear a uniform or protective clothing during the pandemic.

The cost of these items may be tax-deductible as an unreimbursed employee expense.

However, there is one caveat, the uniform or protective clothing is not suitable for everyday wear, and you must not be able to use it outside of work.

Supplies and Equipment

Supplies and Equipment - Janitorial Leads Pro

Janitors use a wide range of supplies to perform their duties, starting from cleaning and moping to vacuuming and carrying out trash bags. If you purchase these items yourself, you may be able to deduct their cost on your tax return.

This includes any expenses related to cleaning, repairing, and maintaining equipment.

Transportation Costs

Traveling to different job sites throughout each day that you can’t avoid as a janitor, or cleaning business owner. If you use your personal vehicle for work-related travel, you may be able to deduct the associated expenses on your tax return.

Janitor with his car

This includes gas, oil changes, and repairs, as well as depreciation and interest on a car loan.

Home Office Expenses

Working as a self-employed janitor, you may be able to claim a tax deduction for the cost of an office. To qualify, the office must be used exclusively for the direct facilitation of your janitorial business and must be your primary place of business.

You may be able to deduct a portion of your rent, mortgage interest, property taxes, utilities, and other office-related expenses based on the percentage of your home that is used for your business.

Marketing and Advertising Expenses

To make things even more interesting, you may also be able to deduct expenses related to marketing and advertising your services.

This includes the cost of business cards, flyers, brochures, and other promotional materials, as well as the cost of advertising in newspapers, magazines, or online.

Read more on how janitorial businesses should leverage marketing strategies for branding their janitorial business.

Insurance Premiums

If you pay for health insurance or other types of insurance, such as liability insurance or worker’s compensation insurance, you may be able to deduct the premiums on your tax return.

To qualify, the insurance must be for yourself, your spouse, or your dependents, and must not be provided by your employer.

Retirement Contributions

If you are a self-employed janitor, you may be able to deduct contributions you make to a retirement plan, such as an Individual Retirement Account (IRA) or a Simplified Employee Pension (SEP) plan.

Contributions to these plans are tax-deductible and can help you save for retirement while reducing your taxable income.

Self-Employment Taxes

As a self-employed janitor, you are responsible for paying self-employment taxes, which include Social Security and Medicare taxes.

However, you may be able to deduct half of your self-employment taxes on your tax return.

This can help reduce your overall tax liability and increase your take-home pay.

Record-Keeping Tips for Janitors

To claim these tax deductions, it’s important to keep accurate records of all your business-related expenses.

This includes keeping receipts and invoices for any supplies or equipment you purchase, as well as documenting your mileage and other travel-related expenses. If you work as a self


Final Thoughts

In conclusion, janitors can benefit from several tax deductions related to their job, both as employees and self-employed individuals. By taking advantage of these deductions and keeping accurate records, janitors can potentially save significant amounts on their taxes while continuing to provide essential services to their communities.

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