Has calculating your income tax rate in the past been overwhelming?

Today, I’m going to discuss the complexities of income tax rates, particularly for self-employed individuals. I explain the progressive tax system, the difference between marginal and average tax rates, and provide practical tips for calculating taxes accurately. The conversation aims to demystify tax calculations and empower listeners with knowledge to manage their finances effectively.

Join me in this episode to hear some tips on estimating your income tax rate and how you can avoid errors when calculating your income tax.

Also mentioned in today’s episode:

• 00:00 Understanding Income Tax Rates
  
  
• 09:33 The Progressive Tax System Explained
  
  
• 11:58 Marginal vs. Effective Tax Rates
  
  
• 17:04 Calculating Your Taxes Accurately
  
  
• 23:20 Final Thoughts and Resources

Takeaways:

• People confuse marginal tax rates with their actual tax rate.
• Income tax calculations are more complex than they seem.
• Self-employment tax is a flat rate of 15.3%.
• Estimating tax rates requires guessing due to timing.
• Graduated income tax means different rates apply to different income slices.
• Both low and high earners pay zero tax on the first $11,000.
• Marginal tax rates only apply to the last dollar earned.
• Average tax rates provide a more accurate tax estimate.
• Online calculators can simplify tax calculations.
• Self-employment tax should not be double counted in estimates.

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Links:

Get your FREE Deductions Guide

Today, I’m providing some practical advice on filing a tax extension and how you can do it without getting a penalty. I’m also talking about the importance of relationships in career success as an artist, especially in a world increasingly influenced by AI.

Join me in this episode to learn how you can file a tax extension properly and why you need to be focusing on building relationships in your art career.

Also mentioned in today’s episode:

• The importance of relationships in career success 2:40

• Understanding tax extensions 14:10

If you enjoyed this episode, please rate, review and share it!

Links:

Free class for artists: Make Art Anyway: Your 2025 Show Strategy

File an extension request here

Make your extension payment here

In today’s episode, I’m talking about some of the common tax fears I see entrepreneurs encounter and giving you strategies on how you can reduce your tax-related anxiety and feel prepared for tax season.

Join me in this important episode to hear my framework that can help demystify the tax process and make managing your taxes less stressful and more straightforward.

Also mentioned in today’s episode:

• Understanding audits and the statute of limitations 3:34

• Following tax rules and self-reporting 7:52

• Reducing tax fear through education 9:30

If you enjoyed this episode, please rate, review and share it!

Links:

• Link to deductions guide

• Link to Money Bootcamp

• Podcast episode links:

• • The Home Office Deduction

  • Can a Massage Therapist Deduct Massages? Education Expenses Explained

  • Don't Forget These Deductions: Cellphone and Internet

  • Don't Forget These Deductions: Parking and Tolls

  • Mileage: The Best Deduction You're Missing

  • How to Deduct Fees, Bandmate Payouts and Gallery Commissions

  • How to Deduct Business Travel

  • How to Deduct Business Meals When You're Self-Employed