Like any other skilled tradesman, professional painters can expect to receive a Form W-2, Wage and Tax Statement from their employer. Anyone who runs their own business or does painting work on the side is considered to be self-employed, and should receive a Form 1099-MISC for any amount they received on their own. Even if you did not receive a form 1099-MISC, you are still required to report your income at tax time. Self-employed painters have to pay self-employment tax as indicated on Schedule C, and you should be prepared to make estimated tax payments if needed.

You can reduce your tax liability by deducting necessary work related expenses. You can claim expenses as miscellaneous Itemized Deductions, taken on Schedule A. There’s a chance you can deduct these expenses on a Schedule C if you are self-employed. Some expenses you may be able to deduct include:

• Fees paid for trade publications related to painting.
• Insurance premiums for liability and wrongful action coverage
• Any equipment that is replaceable within a year
• Safety and personal protective equipment
• Uniforms including the cost and cleaning, as long as it is not street clothes suitable for wearing everyday
• Any fees for licensing and operations, as long as they are not for initial certification.

If you’ve spent part of the year searching for appropriate jobs, you may be able to deduct the expenses you incurred in your job search. Your new job has to be in the same field as your previous one though, in order to qualify for a deduction. Additionally, you may be able to claim work-related education courses, as long as they meet predetermined qualifications. Generally, refresher courses and continuing education classes qualify for deduction. Any class that allows you to get a job in a new field cannot be deducted. For example, as a painter, you can’t take science courses to become a biologist and then deduct those classes.

If you file a Schedule C, you may be able to deduct additional expenses when necessary:

• Bad business debts
• Transportation expenses for getting from job site to job site
• Legal or professional fees
• Rental fees for property used by the business
• Advertising costs
• Tools, equipment and repair maintenance
• Excise or personal property taxes related to your business