If you are self-employed and perform house cleaning services, then you may be able to claim this business as a deduction on your taxes. There are a few things that you will need to do in order to claim this deduction, and most of them are straightforward.
For example, you will need to keep records of your income and expenses relating to the house cleaning business, and make sure that you have proof that you performed the services for which you are claiming the deduction.
Deducting house cleaning services on your taxes
There is a specific deduction available for expenses related to cleaning your home. This deduction, called the “home office deduction,” allows you to reduce your taxable income by up to $250 per month for cleaning services provided in your home.
In order to take advantage of this deduction, you must meet several requirements. You must use the services of a professional house cleaner.
The cleaning services must be used primarily for the purpose of conducting business activities in your home. The cleaning services must be provided on a regular and recurring basis.
If you meet all of these requirements, you can claim the home office deduction on your federal taxes. However, there are some limitations that you should be aware of.
The cleaning services cannot be provided as part of a contract that you signed with the professional house cleaner. The deductible amount cannot exceed 50% of your adjusted gross income (AGI).
What counts as a house cleaning deduction?
There is no set rule as to what counts as a house cleaning deduction, as the definition of “house cleaning” can vary depending on the individual situation. Generally, though, a house cleaning would include tasks such as dusting, vacuuming, wiping down surfaces, and tidying up.
If you are claiming a house cleaning deduction on your taxes, it is important to keep track of all of the expenses involved in carrying out the cleaning. This includes not only the cost of materials used but also any overtime or wage costs that were incurred.
In order to claim a full deduction for your cleaning expenses, you will need to document your costs and sources carefully. This can be done through receipts, invoices, or other documentation.
How to keep records of your house cleaning deductions
There are a few things that you will need in order to keep records of your house cleaning deductions. The first is a record of the dates that you cleaned the house. This can be done in a journal, on a calendar, or by noting down the specific days and times that you cleaned.
The next thing that you will need is documentation of the expenses that you incurred while cleaning. This documentation can take many forms, but some common examples include receipts for supplies used (e.g., vacuum cleaner bags, window cleaner, mop bucket), photos of the areas that were cleaned (including flooring and walls), and estimates of the time spent cleaning each room.
It is important to track your taxes so that you can claim any applicable deductions. This can be done using an online tax calculator or by consulting with a tax advisor.
What else can you deduct along with house cleaning?
There are a number of other deductions you may be able to claim along with house cleaning. Below are a few examples:
- Mortgage interest: If you loan money to your landlord to pay for the cleaning, you may be able to deduct this interest on your taxes.
- Property taxes: Depending on the municipality, you may be able to deduct portion of your property taxes related to your home and its cleanliness.
- Home maintenance expenses: If you spend money on regular home maintenance in order to keep your home in good condition, you may be able to deduct this expense on your taxes.
- Insurance premiums: If you have insurance coverage for your home, you may be able to deduct the premiums associated with this coverage.
How to make the most of your house cleaning deductions
If you are cleaning your own house, you can deduct the cost of supplies, labor, and time spent cleaning your home. You also may be able to claim a percentage of the value of the property as a deduction.
To determine the cost of supplies and labor, divide the total cost of cleaning services by the number of hours spent cleaning. For example, if you hired a professional cleaner for four hours to clean your house, and the total cost was $100, the cost per hour would be $To determine whether you can claim a percentage of the value of your home as a deduction, multiply the square footage of your home by its adjusted gross income (AGI). If your AGI is less than $75,000 ($150,000 if married filing jointly), you cannot deduct any part of your home cleaning expenses.
Be sure to keep all receipts and records of your expenditures when hiring a professional cleaner or cleaning yourself.