Is dog walking taxable? Here’s What to Expect

This content has been reviewed by an Enrolled Agent (EA) with the IRS — the highest credential awarded by the agency. Enrolled Agents are empowered to represent all taxpayers before the IRS, on all types of tax-related matters. Accountants who earn this certification have passed a comprehensive three-part exam on individual and business tax returns. To maintain EA status, they must stay up to date in the field by completing 72 hours of continuing education every three years. NAICS code:

If you have to venture out of town for industry conferences, networking events, dog shows, or competitions, remember to claim travel expenses on your taxes.🛫TransportationWrite it off using:

A restaurant expense can be written off if the reason youre there is to chat about work, perhaps with a client or fellow dog walker.🍔Business mealsWrite it off using:

If you buy a new car, you can write off part of the cost every year for five years.🧰Vehicle tool kitWrite it off using:

Flashlights, tire iron, duct tape, and other tools you may need in your vehicle are deductible.☂️Car insurance & registrationWrite it off using:

1099 Taxes – Business Deduction Information

When it comes to deducting business expenses, there are certain regulations you need to follow:

  • Business expenses must be both ordinary (commonly accepted in your trade) and necessary (helpful and appropriate for your business). The expenses we list below fall into this category.
  • The IRS requires documentation of any business expense you deduct. That’s why it’s so important to track your expenses during the year. If you didn’t track your expenses last year, don’t worry about it because our guide shows you how to retroactively find deductible expenses.
  • Because there’s always a chance you may be audited, save your business receipts for at least three years after you file your taxes.
  • A Q&A with Evan Hutcheson of Evan Hutcheson, CPA, LLC

    Should pet-sitting and dog-walking business owners file taxes quarterly or annually?

    Like most tax answers, it depends. The owners will file taxes annually, no matter what—but could be required to make quarterly payment if their income is high enough throughout the year. Small-business owners should really look into filing quarterly taxes to avoid being hit with a huge tax bill at the end of the year.

    Because they are self-employed, how can they best determine how much of their income they should “set aside” for state and federal taxes?

    While other sources of income and deductible expenses will play a role in this, it would usually be between 20 and 33 percent, depending upon income.

    Can mileage and automobile-related fees both be deducted (or only one or the other)? What proof do they need of mileage to be able to claim it?

    [A business owner] can either claim mileage or actual expenses plus vehicle depreciation. If you want to use mileage, which is the more popular choice, you need to have a log book indicating the date, the destination, the mileage and the business purpose.

    If a business has staff sitters (employees or independent contractors), what do they need to provide to their staff sitters for tax purposes?

    If staff sitters are independent contractors (ICs), the ICs should fill out a W-9 for records. Then, at the end of the year, they should issue those contractors 1099s. If employees are used, employees would need to fill out W-4s and the owner would need to set up payroll with the government so that payroll taxes can be submitted.

    For businesses with staff, do they deduct fees paid to staff as business expenses and do they need to use a Schedule C?

    Businesses can deduct staff pay. Sole proprietors and single member LLCs can file schedule C. Partnerships and multimember LLCs file Form 1065, which is a separate tax return altogether. Corporations file an 1120 or 1120-S.

    What are some business deductions that pet sitters and dog walkers may not typically think of?

    Business deductions pet sitters and dog walkers may not think of include dog food (if provided to clients), business use of their home, business supplies, advertising expenses, office expenses, professional fees (such as association memberships) and travel-related expenses for professional events and conferences.

    Do you have more questions? Evan Hutcheson can be reached via his website, www.evanhcpa.com, or by phone at (615) 727-2295.

    Tax Deductions for Pet Sitters and Dog Walkers

    Please note: While the following post contains tax advice from financial professionals, it’s important to realize that your business and tax situation are unique. Consult with your accountant to ensure you are filing taxes properly.

    As a professional pet-sitting business owner a big part (although likely not your most favorite part) of your job is actually being a business owner. For many, the pet sitting comes easy—from dog walks and cat visits to continuing education in pet behavior, health and first aid—and the “pet part” is the “best part.” The other part, however, the “business part” of paperwork, documentation, scheduling, taxes and accounting, is not nearly as fun for most—but equally important. Keeping on top of your accounting and understanding tax deductions for pet sitters can save you time and money.

    In a previous survey conducted by PSI, 48 percent of members indicated they use an accountant for their pet-sitting businesses, while 52 percent choose to handle taxes and accounting on their own.

    Whether you choose to work with an accountant or handle taxes on your own, it’s important to have a working knowledge of tax requirements for small-business owners.

    To learn more about the “need-to-know” tax knowledge pet-care business owners should have, we reached out to U.S.-based CPA Evan Hutcheson.