All you need to know about taxes for self employed artists

In this video I talk about taxes for self employed visual artists, which you'll learn about how taxes generally work, the different types of income and expenses that are specific to visual artists and how to account for them. Topics covered: Employed versus Self Employed, tax formula, how to calculate your art income, examples of art income, how to calculate your art expenses, cost of goods sold
00:00 - Introduction
01:41 - Income types
02:15 - Employed vs Self Employed
02:48 - Tax formula
03:45 - Calculating your artist income
04:15 - Examples of artist income types
05:15 - Calculating your expenses
05:43 - Cost of goods sold
07:02 - Operating expense examples
07:36 - Art studio expenses
08:14 - Transportation expenses
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[@mandiekeay3095]

00:00​ - Introduction 01:41​ - Income types 02:15​ - Employed vs Self Employed 02:48​ - Tax formula 03:45​ - Calculating your artist income 04:15​ - Examples of artist income types 05:15​ - Calculating your expenses 05:43​ - Cost of goods sold 07:02​ - Operating expense examples 07:36​ - Art studio expenses 08:14​ - Transportation expenses

[@ArtbyNa]

Good video, just the background music is too loud, very distracting.

[@AAA-hv7nr]

There is nothing wrong with being soft spoken if the background music is lowered so it remains in the background and not competing with your voice. Thank goodness for closed captions.

[@elgs1980]

The background music is too annoying.

[@x-lensi]

I've watched a few videos on this subject and I have to say this is by far the best! Thank you so much! 💓

[@KelseyRodriguez]

Hi Mandie! I'm only partially through the video but it's already been super helpful, I'm an artist/youtuber and have been *stresssingggg* about tax season. Glad to see we have CPAs in the art KZbin community like you! One super tiny note though-- the background music is a bit too loud. You have a really soft/chill voice when presenting and it's a bit drowned out here, though the info again is super helpful! Thank you

[@yuliiameshcheriakova6852]

This was really helpful, thank you!

[@abonfireofmasks7702]

very thorough & informative. thank you.

[@AllThatAndDenson]

extremely helpful! Thank you!

[@abbigailarevalo3442]

This was s helpful! Thank you!!

[@heather67027]

Thank you, this was super helpful for me

[@Naturalstrength479]

Low key a satisfying video

[@jessicamatheneyfineart]

Wow, lots of really helpful information, thank you so much for this!

[@theartiztic]

Awesome and Very Helpful Information 💯Thank You!!!

[@nellieedwards5727]

Thank you for the info and it's nice that your voice is very calm and peaceful! I'll check out your other youtubes! God bless you!

[@dustindobson4001]

Very helpful thank you

[@DingArto]

i just started my full time freelance artist life this year of 2022 and was worried cus I have always been working under a company. this really did help me and I look forward to putting theses tips into action

[@leiz3238]

Thank you so much for sharing! I am trying to plan ahead for my freelance digital artist career. I was lost for a long time on how I was going to figure out taxes, but this video really gives me good insight on what I can do, and how I can further research for my own situation. I hope you have a wonderful week/weekend! 💗

[@AlexOrJustAl]

Once a business year has passed, it’s passed. This is the perfect general overview to start a checklist and stay organized all year. Thank you!

[@OneLifeFineArt]

Very useful niche to explore, I would love to see more on the topic of finances for artists. Recommendations of book keeping software that works best for artists?

[@Adheera-kd7fb]

Really help full

[@dark-nekofear]

this is my first year paying taxes as a freelance artist (eep!) thankies for the helpful video

[@miksdickinson]

Thank you! 😊

[@karenespig]

Great information! Shared to my FB artist page 😀

[@mandiekeay3095]

Awesome thanks for sharing 😊

[@DeuceGenius]

Thank you

[@tia.the.mockingbird]

Your voice! Wow!

[@romy1836]

This was insanely helpful! Thank you for giving examples rather than just explaining the concept, it really helps me visualize it. My only question is, if I’m a college student while doing freelance art, would that play into my taxes at all?

[@goldenfluidart]

Thank you for the content! I do wish the music was a bit quieter as I found it hard to hear you

[@yashwanth1969]

Good video but please avoid background music. Was very distracting and too loud.

[@tanyajad3]

This was very helpful and you have such a calm and gathered presence! I'm an actor so expenses can get very tricky with wardrobe, hair, skin care and so on. It's hard to know what I'm allowed to deduct even when it is definitely relevant and for my self employed income. Do you have any specific tips for actors?

[@SinOKreal]

Ty for this information. But trying to remain positive, the music can be lowered a little as to not distract from what your saying. But awesome video. Thanks!

[@ilovepuggypug]

Can you make a video about expenses

[@bunnyl7328]

Aren't you required (over a certain threshold) to pay your self-employed taxes quarterly? You say in the video that when you're self employed you do those calculations when you file at the end of the year but I believe you can be penalized if you are only calculating and paying them that way instead of quarterly. Although, I have heard of people just taking the penalty so they don't have to bother with doing that? I personally pay quarterly just to avoid any potential headache if the IRS decides to bother me.

[@autumnwillow1]

I take the penalty. I think last year it was $19. Either I don't make enough to file quarterly and have them get upset about it, or they don't seem to mind too much. The way I see it, the $19 is well worth it to only have to do paperwork once a year instead of five times ;)

[@Rizzlyricist]

💐

[@magnalemuria]

hi Mandie, in which section would you put photoshop and other softwares in your T2125? Thankyou

[@ljordanatl]

Great information please turn down the background music

[@1146g02]

Thank you. So are we as freelancers legally a 1099?

[@ivonnea.462]

How do you keep track of all of that? Do you use some software/ online tool or hire an accountant?

[@bbmandy1]

I use Google Sheets or Excel, there's some basic templates that you can use to track your numbers for free :)

[@arias4316]

Thank you for your information. I have a question about selling your work outside of the U.S. Do you have to pay an export tax if you're selling your work to, let's say, Canada? Thank you.

[@mandiekeay3095]

When selling from US to Canada you might have to pay GST

[@gayjegers740]

Mandi, my question relates to COGS and inventory. How do paintings made but not sold by year end figure into inventory and COGS?

[@trenton9]

Did you find an answer to this question? I would assume that rolls over into the year in which it's paid for.

[@gayjegers740]

@@trenton9 Yes, all materials, substrates and frames are already in the inventory as raw materials so in effect the COGS are already in inventory.

[@aboywhopaints]

Do you need to be a registered LLC for all the write offs and things you described in the video? Thanks!

[@mandiekeay3095]

nope you don't have to be

[@tellthetruthok]

Thank you for sharing this video!🤗I’m a musician (USA) who makes $ from live gigs only. I mainly get paid in cash. Only a few times a year I get a 1099. How much of that cash from gigs do I claim?? Do the venues who paid me in cash want me to claim it on my taxes?? Thanks in advance!!

[@mandiekeay3095]

You report the amount stated in your 1099

[@migdybo2158]

Hello Mandie!, Thanks for your information. I began my business on January 2021, I am confused in some lines of 1040 form Schedule C specifically the "Inventory at the beginning of the year". What is supposed to be the beginning inventory of a business that began on 2021? Thanks for any help

[@mandiekeay3095]

Hello! Beginning inventory for a business that began on 2021 would be the cost of the inventory that you have on hand when the business started. If there was none, meaning that inventory was purchased during the year instead at the beginning, then this opening balance would be zero.

[@migdybo2158]

@@mandiekeay3095 Thanks so much for the information.

[@Victorbalden]

I have something to ask you. Do you know a good app to book everything? I’m Facebook Creater .Thank you

[@zzzeus78]

The music is a biiiiiiit too loud and distracting...good video though!

[@Maggiewuvsrufus]

Something about the highlights is telling me you know what you’re talking about

[@PamelaStewartArt]

Hi there - such a lovely plain language overview! I have a specific question you may be able to help me answer. If you have a commission that is booked late in the calendar year and the client pays a deposit, however you deliver the commissioned artwork in the next calendar year and get the remainder due, so you put the entire amount of income for the commission into the year the artwork was completed and delivered? I think you do, but want to be sure.

[@PamelaStewartArt]

Also...just to confirm this is for Canadian taxes as my husband thought he read somewhere that COGS are done different than this here in Canada...and I just want to confirm as I have never calculated COGS and it's going to be quite an exercise to do so as I am several years into my art business now (ooops).

[@bbmandy1]

Hi Pamela! That’s right. The total amount you charge for the commission artwork should be booked as revenue when it is completed and delivered.

[@PamelaStewartArt]

@@bbmandy1 excellent - that's what I thought. Any clarification re: COGS question? Hubby ready me a segment of the language that seemed to imply calculating COGS for art is not necessary and can be simply 'nil'...or whatever...the language was rather convoluted for this creative's ears...

[@mandiekeay3095]

@@PamelaStewartArt No problem! If your main business is commissioning art work then calculating COGS is not really necessary. But if you're in the business of say printing art where you have an inventory of goods that you sell then calculating COGS would be more applicable. Hope that helps!

[@LifeDeCrescendo]

Your background music is fighting your voice the whole video. I can't always hear you over it :(

[@k.d.7106]

Good information, thank you. But please loose that annoying background music 😅😢😮

[@mARTishasea]

Hello I am from Ukraine and I want to open a store in Ireland. I already have a bank account. Will I lose unemployment benefits if I sell my paintings on Etsy? thank.

[@who.what.whit.]

You seem to have a lot of really great information here, unfortunately the background music is competing so much Im absolutely scrambled trying to listen to what youre saying :( I cant finish it. Would love if you removed the BG music so we can focus on you!

[@BillM-hf4zj]

fyi, the music is just loud enough that it competes with your message. had to click away...

[@jaym2267]

Yeah im going to jail looool

[@lilyraimey3499]

This is the main thing stopping me from becoming a freelance artist because I have a learning disability and I would fuck this process up and end up in trouble. Heck no.

[@Victorbalden]

Thank you