I thought I was going to pay taxes for 2019 so I set aside some money. Instead, I got a refund so now I have a little extra spending money to put towards my business. Tonight I pulled the trigger on a couple pricey items that I'd been thinking about buying for quite some time. The 1st item is a new 27" monitor to connect my 15" laptop to. I need the extra real estate to work comfortably in Adobe Illustrator and other apps. I'll share details about the 2nd item later. It's something I've wanted to buy for a few years and I think it's going to be a lot of fun. I can't wait to share it with everyone.
I started calculating my self employed income & deductible expenses in late December then paid my Sales & Use Tax at the end of January. I then started doing my state & federal income taxes in early February to give myself plenty of time before the April 15 due date. Soon after, the Covid-19 pandemic hit and the tax deadline was postponed till July 15th, which is 4 days away. Tonight I tried picking up where I left off 4 months ago. I spent most of the time reviewing the work I already did, going over old notes and taking a bunch of new notes. I was a little overwhelmed at first but ended the night feeling confident about what to do next and preparing to make future tax filings easier.
I spent this morning reading over the EDD website (California's unemployment dept) to learn more about filing an unemployment insurance claim. I've already lost 3 DJing gig and 2 vending events due to coronavirus concerns so I figured it was time to file. After reading all the info, I called EDD and the recording said they were experiencing large volumes of calls and I wouldn't be able to file over the phone and to use the website instead. Doing it online took me a while and don't think I filled it out correctly. I'm really hoping someone calls me back. While I was on the EDD website I couldn't find "Mobile DJ" as a work-type, but saw that "Ritual Circumciser" was. Weird. After filing with what EDD I called my bank to discuss my car loan. I also called my credit card company, my health insurance provider, Covered California and my auto insurance provider. Since all events are canceled I'm not going to have much, maybe not any, income for a few months. Every person I spoke to was very helpful and understanding of the situation. Hopefully things get better soon and it's safe to go to events and things go back to normal. If not I might need to start a new side hustle performing ritual circumcisions.
Not really a problem, just more work. I earned more business income this year doing murals/painting, graphic design and t-shirt sales compared to last year just doing t-shirts. Now that I'm preparing my taxes I have to figure out the income and expenses for each type of work. I wasn't fully prepared for this so I've spent the last couple days going over all of my 2019 business transactions again, making sure I have all the data I need to calculate everything. Going forward I'll need to take even better notes on all business transactions for 2020.
I am tired of staring at spreadsheets. The whole reason I started doing this now, instead of waiting till February, is because of Covered California. I have to update my information before the end of the year so I can continue getting healthcare coverage. I went and figured out how much money I made from DJing, t-shirts, murals and graphic design work. Then figured out my business expenses and how much I can deduct. Once I got those numbers I went to the Covered California website but kept getting stuck. I spent a couple hours trying to figure it out till I got frustrated and decided I'll just give them a call on Monday. At least when this is all said & done filing taxes should be a breeze.
I was almost done logging all my 2019 transactions. All my spending was done but now I'm working on logging all income. Every dollar made in 2019 from DJing, t-shirt sales & side jobs are being consolidated into one doc. I'm figuring out as I go what are the best ways to log things like fees & sales tax so it's taking a bit of time. Once this is done I'll have a complete picture where all my money went, and came from, in 2019.
Today I finished going thru all my credit card transactions from 2019, till now, and made sure they were all properly logged and categorized on a separate spreadsheet. After every purchase, I'd log the date, dollar amount, who I paid, how I paid, category, and notes on the doc. A lot of damn work. I made a Google Form and saved the link on my phone to make it easier. I mostly pay everything with credit card so this took me a very long time to go thru. I've already logged my business debit & checking transactions, all I have to do is go thru my personal checking transactions and make sure they're all been entered properly. Once I'm done I can start figuring out what's tax deductible and have a head start when I file taxes.
I'm going through all my credit card transactions from 2019 and making sure I log which ones where for personal use and which ones were business expenses. I've covered 7 months of transactions so far. I hate seeing how much money I've wasted on fast food and interest fees. I gotta be better about those things. I need to eat at home more (also good for my health) and make more money to pay off my credit card debt. Those are two good resolutions for 2020. I've also decided it's time to open a business credit card. Going thru all these transactions and figuring out which ones were personal and which ones were business takes way too much time.