After reading the first blog TAX TRICK #1 hopefully you feel great about all the monies you received this year but it’s time to flip the coin and start to remember all the monies you spent this year.
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ART BUSINESS
After reading the first blog TAX TRICK #1 hopefully you feel great about all the monies you received this year but it’s time to flip the coin and start to remember all the monies you spent this year.
If you are a freelancer, the minimum amount of money you need to earn and to file a tax return is $400!
"Why is the number $400? While you may not owe any income taxes, as a freelancer, you must pay self-employment taxes in addition to regular income taxes. Self-employment taxes start if you earn $400 or more. Therefore you must file a tax return if you GROSS $400 OR MORE.”
You know the feeling when you finally arrive at a beautiful place that so many people have described to you just to realize it's more beautiful that you expected?
Your expectations were low, maybe you already scooped out all the Instagram photos and Yelp reviews. But once there, once in the sight of such greatness, you realize it's better than expected.
Expectations are everything. You can leave a really successful project unhappy just because your expectations were unrealistic. A client can leave a meeting with you incredible impressed because they expected "artists to not be professionals".
What are you doing to extend expectations of your clients, projects, stereotypes, and yourself? Have you taken the time to objectively consider what your expectations are and what your audience or client's expectations might be?
Your view of your outcome and success depends upon your expectations. This is one of the few things you are in control of as a freelance artists. And only you can decide what those are and only you can manage them.
3 MAJOR CHECK POINTS you should make time for:
1. What do you want out of this project or from my audience?
2. Am I sabotaging my own success by having unrealistic expectations?
3. Have I made my expectations clear to right people, including myself?
One of my first questions for each artist I work with is how much money are you currently making off your art? If you don't know what you are making on average per month or per project then how I can help you grow? In order to show progress you have to be able to SHOW where you started.
For artists just starting out or overwhelmed I encourage you open a bank account, create a separate paypal or venmo account so you can easily track your income.
Let's say you do know how much you are making off your art. Then my next question is how much money do you WANT to be making off your art?
I recently met with a singer/songwriter that responded by saying I don't know how much money I want to be making but I do know I want a residency. I loved that answer because that still equals income. Even though they were already thinking of how to get more money from their work I did still need to know the answer.
Take an honest look at your budget. How much money do you need to survive? Do you want to make art full time? How much income would you need to make that happen?
Example: Jerry paints. He wants to paint full time and leave behind his receptionists job. Right now he makes $35,000 a year as a receptionists. So my first thought is how can we break this down into paintings and projects.
$35,000 a year = about $2,917 a month
$2,917 a month = 5 paints @ about $584 each OR 3 major projects @ about $973
When I look at the real numbers I see possibilities. What do you see?