• Home
  • ->
  • Blog
  • ->
  • Health Coach Checklist: 9 Things You Need to Know Before Taxes Are Due

Health Coach Checklist: 9 Things You Need to Know Before Taxes Are Due

by: Jenn Maples
Published: March 19, 2019
Updated: June 23, 2022

Have you done your taxes yet? If you’re a health coach who does business as a sole proprietor or LLC, the deadline for submitting your 2018 tax return is Monday, April 15, 2019, which you probably already knew. But do know what you need to file them?

In today’s checklist, you’ll find everything from deductions and day-to-day expenses to IRA-SEPs. It’s not a totally comprehensive list (you obviously need your social security number or tax ID number and things like bank account interest), but it could mean the difference between getting a refund and owing the IRS. Keep in mind, I’m a writer, a nutrition coach and a self-employed entrepreneur—I’m not a tax professional or CPA. So if you have any questions, be sure to consult an expert in your state.

Tax-Prep Checklist:

  • Year-end statements to show your income
  • A record of business expenses for the year
  • Size of your home work space (if applicable) and any home improvements
  • What you paid in city and state taxes
  • What you paid in estimated quarterly taxes
  • Mode of transportation for your business
  • Continuing education costs
  • Day-to-day expenses
  • Retirement fund contributions

If you’ve scanned the checklist and you’re ready to meet with your tax professional or do your taxes on your own, good luck! But if you want more details about each item, keep reading.

1. Year-End Statements to Show Your Income

Health coaches who are employed by a company get a W-2 stating their income from the previous year. However, for those of us who are self-employed and use payment systems like Square or Stripe for transactions, you’ll need to pull up a form called a 1099-K, which summarizes the sales activity of your account. To find this form, head to the dashboard of whichever platform you use.

2. A Record of Business Expenses for the Year

You’d be surprised at all the things you can deduct when you own a business, I know I was. Think about what you’ve bought to run your health coaching practice. I’m talking about liability insurance, printer paper and ink, giveaways on your social media page, hiring a web designer, cell phone and internet costs, kettlebells or other fitness equipment, and your tax prep fees from last year…to name a few. They’re all deductible, just make sure you keep your receipts.

3. Size of Your Home Work Space and Home Improvements

Do you work out of your house? It doesn’t matter if your home office is a whole room or a table in the corner of the kitchen, you can usually claim it as a deduction. You can also claim a percentage of your home’s expenses like electricity, garbage, house cleaning services, and any updates or improvements you make. Be sure you know the square footage of your home as well as the square footage of the space you work out of.

4. The Amount You Paid in City and State Taxes

When you start your health coaching practice, you’re required to get a state and city business license. And every quarter, they’ll come looking for their portion of your earned income. This can be used as an expense for your business too, so keep track of what you paid in 2018. If you’re panicking right now because you haven’t paid your city and/or state taxes, don’t worry. Just contact your local Department of Revenue and see how you can pay up; you’ll likely just have a late fee and some interest.

5. The Amount of Estimated Federal Taxes

Did you know that you’re supposed to pay estimated federal taxes every quarter? If not, you might have an unwelcome wake-up call this April. To quote what’s stated on the IRS’ website, “Taxes must be paid as you earn or receive income during the year. If you are in business for yourself, you generally need to make estimated tax payments. Estimated tax is used to pay not only income tax, but other taxes such as self-employment tax and alternative minimum tax. If you don’t pay enough tax through withholding and estimated tax payments, you may be charged a penalty.” I found this out the hard way one year, when I didn’t pay attention to how much I was earning and ended up with a $21k tax bill. You can use this form to calculate your estimated quarterly taxes, which are due April 15, June 15, September 15 and January 15.

6. Mode of Transportation for Your Business

When you travel to see clients, do you take a bus? A car? An ElliptiGO? If you take public transportation, your bus fare may be deductible. If you’re driving, track your mileage using an app like MileIQ, and know that interest on your auto (or ElliptiGO) loan, parking and tolls, new tires and maintenance are likely deductible as well.

7. Continuing Education Costs

Some health coaches, nutritional therapy practitioners, and personal trainers need to earn CEUs in order to keep their certification in good standing. When you work for yourself, you can deduct the cost of those classes, whether you’re learning about endurance training, bio-individual nutrition, or ancestral movement techniques. Keep track of these costs—they can help bring down your tax bill.

8. Day-To-Day Expenses

Everything from brunches to books can be deducted come tax time. Say you’re meeting a new client or discussing your brand refresh with your web designer over paleo pancakes. As long as you’re talking about your health coaching business, there’s a solid chance it’s a deduction. Same thing goes if you buy Mark Sisson’s new Keto Reset Cookbook or Robb Wolf’s Wired to Eat. As long as you don’t abuse the benefit, you should be good-to-go on anything that’s considered an expense for your business.

9. Retirement Fund Contributions

I’ve been self-employed for almost 15 years, and while I’d love to have someone match my retirement contributions like a lot of companies do, an IRA-SEP (also called a Simplified Employee Pension Individual Retirement Arrangement) is a great way to save and get a significant tax break compared to a traditional IRA. You can contribute up to 20% of the net amount of your earnings and essentially lower your taxable income for the year. I call that a win-win.

Summary

Tax time is right around the corner, but with this checklist, you should have a good handle on what you need as a health coach doing business as a sole proprietor or LLC. Remember, you can always file an extension if you need more time, which gives you until October 15. Just know that if you owe anything, you’ll be paying six months worth of interest.

Still a little lost? Hire a tax expert in your area who specializes in small businesses. Or better yet, hire someone who specializes in taxes for the health and wellness industry.

Good luck!

Now tell us what you think! Leave a comment below to start or join the discussion...

{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}

Ready to become one of the world’s most trusted, experienced, and knowledgeable health coaches? Get certified as a Primal Coach.

Establish clout. Elevate your career. Enrich your knowledge with the only comprehensive ancestral health
certification program in existence.

Got questions? We have answers. Gain instant access to the Primal Health Coach Institute Course Catalog.

In course catalog, you will learn:

  • How to become a health or fitness coach in just 5–7 hours per week
  •  Exactly what you will learn in each of our online courses
  • The professional opportunities available for health and fitness coaches
  • Ways to define your niche as a health or fitness specialist
  • The length, format, and graduation requirements of each course
  • The business tools and support we provide to all of our students
Select Your Country *
  • Please select one
  • Afghanistan
  • Åland Islands
  • Albania
  • Algeria
  • American Samoa
  • Andorra
  • Angola
  • Anguilla
  • Antarctica
  • Antigua and Barbuda
  • Argentina
  • Armenia
  • Aruba
  • Australia
  • Austria
  • Azerbaijan
  • Bahamas (the)
  • Bahrain
  • Bangladesh
  • Barbados
  • Belarus
  • Belgium
  • Belize
  • Benin
  • Bermuda
  • Bhutan
  • Bolivia (Plurinational State of)
  • Bonaire, Sint Eustatius and Saba
  • Bosnia and Herzegovina
  • Botswana
  • Bouvet Island
  • Brazil
  • British Indian Ocean Territory (the)
  • Brunei Darussalam
  • Bulgaria
  • Burkina Faso
  • Burundi
  • Cabo Verde
  • Cambodia
  • Cameroon
  • Canada
  • Cayman Islands (the)
  • Central African Republic (the)
  • Chad
  • Chile
  • China
  • Christmas Island
  • Cocos (Keeling) Islands (the)
  • Colombia
  • Comoros (the)
  • Congo (the Democratic Republic of the)
  • Congo (the)
  • Cook Islands (the)
  • Costa Rica
  • Côte d'Ivoire
  • Croatia
  • Cuba
  • Curaçao
  • Cyprus
  • Czech Republic (the)
  • Denmark
  • Djibouti
  • Dominica
  • Dominican Republic (the)
  • Ecuador
  • Egypt
  • El Salvador
  • Equatorial Guinea
  • Eritrea
  • Estonia
  • Ethiopia
  • Falkland Islands (the) [Malvinas]
  • Faroe Islands (the)
  • Fiji
  • Finland
  • France
  • French Guiana
  • French Polynesia
  • French Southern Territories (the)
  • Gabon
  • Gambia (the)
  • Georgia
  • Germany
  • Ghana
  • Gibraltar
  • Greece
  • Greenland
  • Grenada
  • Guadeloupe
  • Guam
  • Guatemala
  • Guernsey
  • Guinea
  • Guinea-Bissau
  • Guyana
  • Haiti
  • Heard Island and McDonald Islands
  • Holy See (the)
  • Honduras
  • Hong Kong
  • Hungary
  • Iceland
  • India
  • Indonesia
  • Iran (Islamic Republic of)
  • Iraq
  • Ireland
  • Isle of Man
  • Israel
  • Italy
  • Jamaica
  • Japan
  • Jersey
  • Johnston Island
  • Jordan
  • Kazakhstan
  • Kenya
  • Kiribati
  • Korea (the Democratic People's Republic of)
  • Korea (the Republic of)
  • Kuwait
  • Kyrgyzstan
  • Lao People's Democratic Republic (the)
  • Latvia
  • Lebanon
  • Lesotho
  • Liberia
  • Libya
  • Liechtenstein
  • Lithuania
  • Luxembourg
  • Macao
  • Macedonia (the former Yugoslav Republic of)
  • Madagascar
  • Malawi
  • Malaysia
  • Maldives
  • Mali
  • Malta
  • Marshall Islands (the)
  • Martinique
  • Mauritania
  • Mauritius
  • Mayotte
  • Mexico
  • Micronesia (Federated States of)
  • Midway Islands
  • Moldova (the Republic of)
  • Monaco
  • Mongolia
  • Montenegro
  • Montserrat
  • Morocco
  • Mozambique
  • Myanmar
  • Namibia
  • Nauru
  • Nepal
  • Netherlands (the)
  • New Caledonia
  • New Zealand
  • Nicaragua
  • Niger (the)
  • Nigeria
  • Niue
  • Norfolk Island
  • Northern Mariana Islands (the)
  • Norway
  • Oman
  • Pakistan
  • Palau
  • Palestine, State of
  • Panama
  • Papua New Guinea
  • Paraguay
  • Peru
  • Philippines (the)
  • Pitcairn
  • Poland
  • Portugal
  • Puerto Rico
  • Qatar
  • Réunion
  • Romania
  • Russian Federation (the)
  • Rwanda
  • Saint Barthélemy
  • Saint Helena, Ascension and Tristan da Cunha
  • Saint Kitts and Nevis
  • Saint Lucia
  • Saint Martin (French part)
  • Saint Pierre and Miquelon
  • Saint Vincent and the Grenadines
  • Samoa
  • San Marino
  • Sao Tome and Principe
  • Saudi Arabia
  • Senegal
  • Serbia
  • Seychelles
  • Sierra Leone
  • Singapore
  • Sint Maarten (Dutch part)
  • Slovakia
  • Slovenia
  • Solomon Islands
  • Somalia
  • South Africa
  • South Georgia and the South Sandwich Islands
  • South Sudan
  • Southern Rhodesia
  • Spain
  • Sri Lanka
  • Sudan (the)
  • Suriname
  • Svalbard and Jan Mayen
  • Swaziland
  • Sweden
  • Switzerland
  • Syrian Arab Republic
  • Taiwan (Province of China)
  • Tajikistan
  • Tanzania, United Republic of
  • Thailand
  • Timor-Leste
  • Togo
  • Tokelau
  • Tonga
  • Trinidad and Tobago
  • Tunisia
  • Turkey
  • Turkmenistan
  • Turks and Caicos Islands (the)
  • Tuvalu
  • Uganda
  • Ukraine
  • United Arab Emirates (the)
  • United Kingdom
  • United States
  • United States Minor Outlying Islands (the)
  • Upper Volta
  • Uruguay
  • Uzbekistan
  • Vanuatu
  • Venezuela (Bolivarian Republic of)
  • Viet Nam
  • Virgin Islands (British)
  • Virgin Islands (U.S.)
  • Wallis and Futuna
  • Western Sahara
  • Yemen
  • Zambia
  • Zimbabwe
Program Interest (Please Select One) *
  • Primal Health Coach Certification
  • Primal Fitness Coach Certification
  • Master Coach Certification
  • Primal Health and Nutrition Expert Certification
  • Primal Fitness Expert Certification
  • Coaching Expert Certification
  • Advanced Coaching Expert Certification
  • Business Expert Certification
  • Human Intestinal Microbiome in Health and Disease
  • Strength Training for Women
  • Health Coaching in Medical Practices
  • Functional Therapeutic Diets
  • Applied Ketogenic Diet
  • Functional Lab Testing for Health Coaches
  • Launch Your Coaching Business
  • How to Land a Health Coach Job
  • PrimalPro™
  • I'm not sure yet
>
Share
Tweet
Email
Share
Pin
More