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.

If you enjoyed this episode, please rate, review and share it!  Every review makes a big difference by telling Apple or Spotify to show the Sunlight podcast to new audiences.

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

In today’s episode, I’m chatting about the impact of the Trump administration and why I think doing a tax protest is a counterproductive method of political dissent. I’m also giving you some ideas for effective ways you can influence policy if you’re looking to make a difference.

Join me to learn how you can channel your political energy and exercise political power through engagement rather than breaking the law.

Also mentioned in today’s episode: 

• Effective ways of political engagement 7:50

• Consequences of a tax protest 9:10

• Alternative channels for political protest 16:55

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

Links:

FREE LIVE CLASS- https://go.sunlighttax.com/free

Today, I’m talking about how you can use the pain of getting a large tax bill and turn it into an opportunity for financial growth, including funding for your retirement savings and maxing out your IRA contributions. 

Join me in this episode to learn how you can transform your current financial challenges into an opportunity for improvement and how you can make sure you are financially secure. 

Also mentioned in today’s episode: 

• Challenges for not paying quarterly taxes 9:52

• Financial anxiety and economic security 12:34

• Using your current financial situation as a motivator 18:32

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

Links:

On-demand class on Making Taxes Easier/Best Deal on my program, Money Bootcamp

Today, I’m talking about the importance of estimated quarterly taxes if you’re self-employed and how you can use the Safe Harbor rule, to help make an accurate tax estimate if your income is different this year from last year. 

Join me in this episode to learn how you can avoid tax penalties and large tax bills by estimating your quarterly taxes as accurately as possible. 

Also mentioned in today’s episode: 

• What is the Safe Harbor Rule? 2:20

• Paying your quarterly taxes based on current year income 9:10

• The benefits of paying quarterly taxes 13:00

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

Links:

On-demand class on Making Taxes Easier/Best Deal on my program, Money Bootcamp

In today’s episode, I’m talking about the importance of paying your quarterly taxes as a business owner and how you can start paying them now, even if you’ve missed them in the past. I’m also giving an update on the Beneficial Ownership Information Report and how you can get yours done. 

Join me in this important episode to get all the tips you need to start paying your quarterly taxes so you can avoid getting any large tax bills. 

Also mentioned in today’s episode: 

• Steps to file a BOI report 5:30

• Calculating your estimated quarterly tax payments 10:39

• Addressing income variations and future adjustments 12:15

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

Links:

Free Class on Making Taxes Easier, On-Demand

Free Mini Course for LLCs, File Your BOI Report 

Today, I’m chatting about another commonly missed tax deduction for self-employed individuals: parking and tolls. I’m diving into how tolls and parking should be tracked separately and added to the car expense category on tax schedules so you can get the deduction you deserve.

Join me in this episode to get some practical tips on how to easily track your parking and toll expenses for this upcoming tax season. 

Also mentioned in today’s episode: 

• Tracking parking and tolls separately from mileage 2:26

• Methods for tracking car expenses 2:44

• Practical tips for maximizing your deductions 4:30

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

Links:

Sunlight episode on tracking mileage deduction

Save your seat for the free class, Make Taxes Easier and Stash an Extra $152k in Your Savings

Today, I’m chatting about a commonly missed tax deduction for entrepreneurs: cell phone and internet expenses. I’m going over why these deductions are missed and how you can utilize them to get the most out of your tax return this year. 

Join me in this episode to learn how to calculate a reasonable business percentage for these mixed-use expenses so you can maximize your allowable deductions and keep more of your hard-earned money. 

Also mentioned in today’s episode: 

• Calculating business percentage for cell phone expenses 2:54

• Internet usage and business deductions 5:50

• Tracking and documenting your personal expenses 8:28

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

Links:

Save your seat for the free class, Make Taxes Easier and Stash an Extra $152k in Your Savings

Check out my program, Money Bootcamp.

In today’s episode, I’m chatting about the common confusion around tax deductions for home offices or studios, including what you can and cannot deduct as an entrepreneur. I’m also explaining how discrepancies between bookkeeping and tax deductions for a home office are normal and expected. 

Listen to this episode to get a better understanding of how to maximize your home office and studio deductions. 

Also mentioned in today’s episode: 

• The criteria for home office deductions 2:35

• How you can calculate your home office deductions 6:50

• Direct expenses and quarterly tax payments 8:20

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

Links:

 Visual Guide to Tax Deductions

Check out my program, Money Bootcamp.