VictoriaD75
Expert Alumni

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:

  1. 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.
  2. Business Purpose - Expenses must have a legitimate business purpose to be considered deductible.
  3. Reasonableness - The tax law requires that the deductions be reasonable to be deducted.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"