You must pay taxes on your earnings because you are a self-employed artist as a nail technician. Although it might be intimidating, filing taxes is a crucial aspect of managing your business. In this post, we’ll go over the fundamentals of tax filing for independent nail technicians and respond to some frequently asked questions.
The employer and employee portions of Social Security and Medicare taxes, also referred to as self-employment taxes, must be paid by self-employed artists. The current self-employment tax rate is 15.3%, which includes 2.9% for Medicare and 12.4% for Social Security. However, on your federal income tax return, you are permitted to deduct 50% of the self-employment tax.
Self-employed artists must additionally pay federal income tax on their earnings in addition to self-employment taxes. Your income level and tax bracket determine how much federal income tax you owe. Additionally, you might have to pay federal, state, and local income taxes. Do independent artists have to pay taxes?
The answer is that independent artists must pay taxes on their earnings. This covers self-employment taxes, federal income taxes, and maybe state and local income taxes. To accurately report your earnings on your tax return, it is crucial to keep thorough records of your income and expenses throughout the year.
Income received as an independent contractor or self-employed person is reported on a 1099 form. Your clients may provide you with a 1099 form at the end of the year if you work as a freelancer or independent contractor to record the revenue they paid you. This income must be reported on your tax return. Can I deduct the cost of my manicures?
You might be able to claim some of your business expenditures as a nail technician on your tax return. This covers costs for things like supplies, tools, and professional development programs. Personal expenses, such as mani-pedis or other costs associated with personal care, however, cannot be written off on your tax return.
To sum up, while first appearing to be an onerous task, filing taxes as a self-employed nail technician can be made straightforward with the correct tools and information. Keep thorough records of your earnings and outgoings throughout the whole year, and seek advice from a tax expert if you have any queries or concerns. You can make sure that your tax return is accurate and submitted on time by remaining organized and knowledgeable.