Tax Services Built for
Licensed Electricians

Licensed electricians can deduct: all hand and power tools, testing equipment, work vans and trucks (mileage or actual expenses), work uniforms and safety gear, professional licenses and continuing education, union dues, materials purchased for jobs, business insurance, a portion of your cell phone, and a home office if used exclusively for business. We review every deductible category to minimize your taxable income.

Section 179 lets you deduct the full purchase price of qualifying equipment — power tools, conduit benders, ladders, testing devices, or a work van — in the year you buy it, rather than depreciating it over several years. For 2024, the deduction limit is $1,160,000. Combined with bonus depreciation, this is one of the most powerful savings strategies for electricians. Arrieta Tax ensures every eligible purchase is properly documented and deducted.

Yes. If you expect to owe $1,000 or more in federal taxes, you must make quarterly estimated payments (due in April, June, September, and January). New York State also requires quarterly estimated payments for state income tax. Missing deadlines results in underpayment penalties. Arrieta Tax calculates your exact quarterly amounts and sends reminders before every due date.

For electricians earning over approximately $40,000 in net annual profit, an S-Corp election can significantly reduce self-employment taxes. With an S-Corp, you pay yourself a reasonable salary (subject to SE tax) and take the remainder as distributions (not subject to SE tax). An LLC alone offers liability protection but all net income is still subject to SE tax. We analyze your specific numbers and recommend the most efficient structure for your stage of business.