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