Congratulations — your dreams have come true and your lash business is absolutely booming! However, while we’re thrilled about this growth, the increased income can make tax season a little daunting. Luckily, we’ve got all the information you’ll need to file taxes as an artist, including the lowdown on cosmetologist tax deductions. Read on to learn how to file your taxes as a successful lash artist.
Filing taxes as an artist is an overwhelming feat. There are many aspects to keep track of when filing taxes — it makes total sense to feel unsure about what information is vital. But don’t worry because we have you covered.
When it comes to filing taxes as an artist, most lash artists are considered “self-employed” in the eyes of the IRS. This means that your personal and business taxes are intertwined. You must meet the IRS’s criteria to distinguish yourself as a business. If you’re feeling unsure about where your business falls based on these criteria, don’t be afraid to ask a professional for their assistance.
Once you’ve established yourself as a business on a federal level, you’ll need to take a closer look at your state’s specific criteria. Every state has unique guidelines for filing taxes as a business, so be sure to research these before submitting your forms. The last thing you want is to have your taxes filed incorrectly!
Once you’ve confirmed your business status and before tax season rolls around, you’ll want to start keeping track of all your expense and income items. This includes information such as:
- Income from your sales
- Advance payments
- Salaries paid out
- Office rental cost
- Cost of equipment and supplies
- Business insurance
These are only a few things you’ll need to file your taxes as an artist. Next, we’ll give you a few tips to expedite the process and ease your nerves.
Tips for Filing Taxes
On the bright side, many lash babes before you have gone through this exact situation — us included! We have a few tips up our sleeve to help you through the process. So as you prepare to file your taxes, keep these tips for filing taxes as an artist in mind.
Look into Write-Offs
Cosmetologist tax deductions could save you a ton of money! When you’re ready to file your taxes, consider what you may be able to write off as a tax deduction. This may include rental fees, business supplies, licensing costs, and more. Make sure you keep track of these expenses so when the time comes to write off expenses, you can do so accurately.
Consult with a Tax Professional
When in doubt, ask the professionals! You’d want your clients to come to you with their questions, so why wouldn’t you consult a tax professional when you need help?
Tax professionals are trained in all aspects of filing, including self-employment. These professionals can help you identify viable cosmetologist tax deductibles as well as help you file your taxes. Ask questions, raise concerns, and follow along in the process so you can learn how to properly file your taxes moving forward.
Keep Your Tax Information Organized
Organization is essential, lash babe! As the year goes on, keep an organized system to track your expenses. When the tax season rolls around, you’ll have all the information you need right at your fingertips. There’s no need to search for hours for that one receipt that could save you money!
Additionally, you’ll want to file your previous tax forms away for safekeeping. That way, you’ll be able to reference previous tax years if necessary.
It’s better to overestimate your tax payments than underestimate and have to fork over extra cash. When planning how much your tax expenses are likely to be, always lean toward the higher side. If you end up overestimating, that just means you’ll have more cash in your pocket than you thought you would.
Level Up with The Lash Professional
Though filing taxes as an artist can be overwhelming, it’s also a sign that your business is growing! Filing taxes = success, right? And if you haven’t started your business yet, now’s your time to shine! Check out The Lash Professional’s course on how to start your own lash business!