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Get your taxes done using TurboTax
Being a yoga instructor makes you a sole proprietor if you are being paid for your services and have a profit motive. Being an independent contractor as a yoga instructor makes you self-employed, as you are not a regular employee receiving a paycheck and W-2. You will be subject to self-employment tax. You will want to deduct any business expenses that apply.
There are three common tests for deductibility of business expenses:
- Ordinary and Necessary - The expense must be ordinary and necessary. Generally, this means that the expense is commonly found in the specific business, and is helpful and appropriate in running the business.
- Business Purpose - Expenses must have a legitimate business purpose to be considered deductible.
- Reasonableness - The tax law requires that the deductions be reasonable to be deducted.
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March 25, 2020
5:00 PM