The 2019 tax season is here so it’s time to pay your taxes. Or hopefully get a refund. 🙂
Last year a I wrote a two-part blog about the new tax code. You can read them here and here. I got my taxes done last week and I got clobbered. Why?
My income went up by about 10% and I didn’t adjust my Federal quarterly estimated tax payments. Duh.
Since my income went up, my Earned Income Tax Credit went down. After you deduct all of your business expenses, your Adjusted Gross Income (AGI) may be low enough to qualify.
I moved from New Jersey to New York. That means I pay a higher tax rate and I have to pay a city tax on top of that.
As a result of moving, my office space shrunk and your rent/mortgage deduction is based on square footage.
I paid my NJ quarterly estimated taxes but not NY. Double duh. I didn’t realize how much higher NY taxes are. I will not make that mistake again!
As to the new tax code, it looks like the 20% business deduction applies to your Net Profit, not your Gross Revenue. On top of that it won’t necessarily be 20%, it could be up to 20%. The issue for some voice talent is that we have a lot of business expenses which eats into our Net Profit.
TIP OF THE WEEK
Some of my tax woes were preventable, some were not. Here’s a couple of things to keep in mind:
(for you 1099’ers) If you’re making more money this year than last year, raise your Quarterly Estimated Tax payments both state and federal. If you’re not sure how much, contact your CPA. You do have a CPA, don’t you?
(for you W2’ers) Adjust your withholding! One of the traps of the new tax code is that if you didn’t increase your withholding, you may have to pay more in taxes when it comes time to file.
If you are incorporated, see if it’s possibly hindering you. Not everyone needs to be incorporated and some types give you more of a benefit than others depending on the state you live in and your financial situation.
Track your expenses as you go along and keep good records. The more you can write off, the less taxes you may have to pay.
NEWS AND NOTES
You have FIVE chances to attend my money-centric workshops! Well, three and-a-half…
TONIGHT!!! Tuesday, February 26th @9PM EST: I will be leading a “Manage Your Money & Taxes Like a VO Pro” webinar hosted by the wonderful Julie Williams. We’ll talk about the basics of incorporating your voiceover business (and whether you should or shouldn’t), how to file your taxes as a voice talent, and what you can & can’t write off. Click here to sign up.
SOLD OUT! Sunday, March 3rd @10AM EST: I am honored to be one of the guest speakers at the NY Audiobook Business Workshop hosted by Scott Brick and Johnny Heller. I’ll be leading a discussion on how to file your taxes as a voice talent. Learn more here.
Thursday, March 7th @8PM EST: My next Marketing 201 webinar will be “What Your Website Says About You”. We’ll talk about how to objectively critique your website and make it a more effective marketing tool. Sign up here.
Thursday, March 21st @8PM EST: My next Business & Money 201 webinar will be “Tax Time!” Take a wild guess what we’re gonna talk about. 😉 Sign up here.
Sunday, March 24th @2:00 PM EST: I will be leading a “Manage Your Money Like a VO Pro” workshop at Arts On Site hosted by the Voice Actors of NYC Facebook Group. We’ll talk about all things financial as a voiceover business and tips about filing your taxes in 2019. FYI these VANYC donation-based events sell out FAST so sign up right here, right now!
ONLY 7 SEATS LEFT! March 29-31, 2019: VO Atlanta 2019! My Breakout Session will be “The Sales Funnel” and my X-Session will be “Managing Your Money”. There are still a few X-Session seats left so sign up today!
EARLY BIRD SPECIAL! Thursday, May 30th 9AM-3PM EST. “The VO Tech Deep Dive and eLearning Extravaganza!” This all-day workshop will consist of two classes: in the morning Amanda Rose Smith will dive deep into audio engineering (from studio creation to mastering files) and in the afternoon I will run an intensive “Learning to do eLearning” seminar covering everything you need to know about the world of eLearning and Corporate narration (which includes live coaching). The Early Bird rate of $99 per class or $179 for both classes ends April 1st and are limited to a precious few seats. Tickets are on sale now!
HAPPY HAPPYS
Happy Tortilla Chip Day and Tell a Fairy Tale Day!
QUOTE OF THE WEEK
Tom Dheere is a 20+year veteran of the voice over industry who has narrated thousands of projects for hundreds of clients in over a dozen countries. He is also a voiceover business & marketing consultant known as the VO Strategist and produces the comic book “Agent 1.22”.