Expenses You Can Deduct From Your Income When You Are a Home Tutor

Nowadays, parents prefer home tutors to avoid the hassles of travelling, focus on personalised needs, and have flexible scheduling. With the increasing demand, the incomes of home tutors are also increasing. However, navigating the tax implications of this income can be confusing. In this article, we will discuss about the following:

• Implications of tax on tutoring income
• Deductible expenses from tutoring income
• FAQs

Taxability of Income Earned by Home Tutors

If your primary occupation is home tutoring then income earned from home tutoring will be taxable under the head “Income from Business or Profession” but in case you are doing this as part-time work other than your main source of income for example salary, then home tutoring income will be taxed under the head “Income from Other Sources”. However, practically there is no major difference in taxation and deductions available in either of the cases.

Expenses that can be Claimed Against Income by Home Tutors

Let’s take a look at the expenses that you can deduct as a tutor from your taxable income. Deduct these expenses which are directly related to your tutoring work from the income you earn –

• Textbooks you purchase to keep yourself up to date
• Cost of seats or chairs used for tuition
• Stationery
• Advertising or cost of pamphlets
• Photocopying or printing costs
• Commuting to take tuition
• Depreciation on assets used for earning the income such as computers, furniture etc.
• Membership fees to educational institutions or organizations relevant to the field
• Any other expenses directly related to tutoring work. If partially used for personal purposes, allocate a fair percentage to tutoring work.

So, from your Income from Tutoring, you can reduce the Expenses listed above, which will give you your Net Income. This is the income you’ll offer to tax. This is the income from your Freelance Tutoring work. Want to understand in detail about Taxes for a Freelancer? Read our very detailed guide here.  

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