Sunday, March 19, 2006

Good news, bad news

The good news: In 2005, I netted about twice as much income from singing and teaching as I did in 2004.

The bad news: I owe about twice as much as I did in 2004. Funny, that.

I have got to get into the habit of paying quarterly!! I also need to start seeing my fees as about 30% less than they actually are. It’s time to start automatically taking off 20% for taxes and 10-15% for my manager. Sure, the fees are getting bigger, but so are the expenses…

As disappointing as it is to owe money (I think my days of getting a refund are totally over…), I always enjoy the quantifiable nature of taxes. There it is, in black and white, my year by the numbers. What I did – or didn’t – spend money on, all the gigs in a nice list, my charts with trips and per diems and income from teaching… I love it.

Looking back over the past four tax years, since getting out of school, and seeing a steady increase in Box 31 on the Schedule C makes me feel that things are going well. That I’m doing a few things right, as far as the business is concerned. If only all things in life were so easily gauged...

3 comments:

Canadienne said...

I feel ya!

My first year as an apprentice, my income tripled. It was quite a shock, and so was the tax bill! After working a day job in a tax firm, I too enjoy making my charts and figuring out where the numbers fall (and saving myself money by doing these things myself before I hand the goods over to my tax guy). It helps put things in perspective, and is kind of freaky at the same time. Last year, I made more than my father, and that was weird for both of us. But after subtracting all the business expenses, it's not really as much on paper.

Well, here's to finishing this tax prep up this week!

Canadienne said...

Oops. That should read "my first year AFTER finishing my apprenticeship".

Chris Foley said...

Quarterly payments are definitely the way to go, although the transition hurts.

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