The Traveling Therapist Podcast

135. Biz Owners + Top 6 Overlooked Tax Write Off Categories = More Cash In The Bank with Danielle Hayden

• Kym Tolson • Season 1

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Did you know that overlooking just a few tax deductions could leave hundreds, if not thousands of dollars on the table? I recently sat down to chat with Danielle Hayden, a seasoned CPA and founder of Kickstart Accounting, Inc. She dropped some gems that could reshape how you approach your finances as a Traveling Therapist.

 

First up, separating your business and personal expenses. It can be tempting to swipe your personal card for a quick work lunch or buy office supplies while shopping for home essentials. But, being meticulous here ensures you're capitalizing on every legitimate deduction.

 

Now, if you're netting between $50K and $75K annually, it might be time to consider structuring as an S Corp. Yep, paying yourself a reasonable salary can seriously cut down on that self-employment tax burden. And trust me, having a business structure that aligns with your income level is a game-changer.

 

Here’s a golden nugget: pay attention to how you show up financially. Are you grabbing that coffee to brainstorm some work ideas? Use your business card. But if it's just a morning treat, stick with personal finances. 

 

It hurts to see money wasted, especially thinking it's saving taxes. Spending $1 to save $0.40 isn't smart. Have you ever been told to go on a spending spree to reduce your taxable income? That advice can backfire, big time. Nicole, one of Danielle's clients, faced debt after following such misguided advice.

 

Key points

  • Separate Business and Personal Expenses: Keeping business and personal expenses distinct helps ensure you're maximizing every legitimate tax deduction.

  • Consider S Corp Structure: If your net income is between $50K and $75K, structuring as an S Corp and paying yourself a reasonable salary can reduce self-employment taxes.

  • Track Deductions and Expenses: Meticulously track deductions like home office use, mileage, and business-related expenses to avoid wasting money and ensure you're financially optimized year-round.



About Danielle Hayden:

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Are you ready to take the plunge and become a Traveling Therapist? Whether you want to be a full-time digital nomad or just want the flexibility to bring your practice with you while you travel a couple of times a year, the Portable Practice Method will give you the framework to be protected! Get on the waitlist now: https://kymtolson.kartra.com/page/PP-Waitlist

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Connect with me:

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