What I check on every return
- Every credit you qualify for checked, including the Earned Income Credit and Child Tax Credit
- Booth renter or employee status confirmed
- Square, Booksy and Cash App deposits matched to your income
- Tips separated so the new deduction applies
- Retail product sales and sales tax checked
Deductions barbers often miss
- Weekly or monthly chair rent
- Clippers, trimmers, shears, guards, capes and sanitizer
- Booking app subscriptions and card processing fees
- TDLR license renewal and continuing education
- Classes, hair shows and the travel to get there
- The business share of your phone, and mileage to house calls
Houston and Texas rules that apply to you
- Sales tax: haircuts aren't subject to Texas sales tax, but products you sell (pomade, shampoo, beard oil) are. Selling retail means getting a free sales tax permit and collecting 8.25% in Houston.
- Licensing: your barber license comes from TDLR (Texas Department of Licensing and Regulation). Renewal fees and required hours are deductible.
- No Texas income tax: your return is federal only, but self-employment tax (15.3% for Social Security and Medicare) applies once your net self-employment income reaches $400.
New for 2026 returns (filed in 2027)
- No tax on tips: barbers are on Treasury's list of tipped occupations, so reported tips can be deducted, up to $25,000 a year (2025 through 2028). For self-employed workers the deduction can't exceed your net profit from that work, and it phases out above $150,000 of income ($300,000 married filing jointly).
- 1099 forms: clients and companies now send a 1099-NEC only when they pay you $2,000 or more in 2026 (it was $600). Payment apps send a 1099-K only above $20,000 and 200 payments. All of your income is still taxable, form or no form.
What to bring
- Booth rent receipts or your rental agreement
- Annual reports from Square, Booksy, Cash App, Zelle or your POS
- Your record of cash income and cash tips
- Receipts for tools, supplies and products
- Your TDLR license number and renewal receipt
Common questions
I rent a chair. Am I self-employed?
Usually, yes. If you set your own hours, keep your own clients and pay the shop rent, you file a Schedule C. If the shop pays you wages and gives you a W-2, you're an employee and the rules are different.
Do cash tips count?
Yes, all tips are income. The good news is that properly reported tips now qualify for the new deduction, so keeping a daily tip log pays off.
Where I work
I'm based in Houston and work with clients across Harris, Fort Bend, Montgomery and Brazoria counties, including Pasadena, Pearland, Sugar Land, Missouri City, Katy, Cypress, Spring, Humble, Baytown and The Woodlands. Meet in person in Houston or do everything online, in English, Spanish or Portuguese. I also work by video with clients in Beaumont & Port Arthur, Duncanville, DeSoto, Cedar Hill & Lancaster.
Get a flat-fee quote before I start
Book a free 15-minute call. I'll tell you what your return needs and what it costs. Fees are never a percentage of your refund.
Book a free callSee typical pricesOfficial sources: IRS: tips and overtime deductions ↗ · Texas Comptroller: taxable services ↗ · IRS: Self-Employed Tax Center ↗
Updated October 2026 for 2026 returns filed in 2027. General information only, not tax advice for your situation. Rules and amounts can change; your situation is confirmed when your return is prepared.
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