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 drew this the other day. I wasn't crazy about it at first but now it's kinda growing on me. I didn't draw or do anything creative today. Instead I spent a good chunk of the day figuring out approximately how many miles I drove in 2019 for business purposes. The number I came up with was 1,586.5 miles.
I didn't do a good of tracking business related mileage last year. I downloaded a mileage tracker on my phone last year and never really checked it till this weekend. There are probably thousands of trips logged on the app and it just gives me the addresses at every stop. I have to click each address and zoom in to figure out the locations. I reviewed a bunch of trips today from 2019 and figured it would take me days to go thru all of them so I went and did all of 2020. I want to be better about logging mileage going forward so I'm gonna try and review my trips everyday before bed. Wish me luck.
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'm getting ready to file my taxes so I went thru last years tax stuff and found I picture I drew of myself. It was my first year filing business income & expenses for 2018 and it took me a few weeks to go over all my records and file. It sucked while I was doing it but felt great once I finished. I think I did better job at keeping records for 2019 so it shouldn't take as long as last year.
I waited till the last day but I paid it on time. All the sales tax I collected from t-shirt sales in 2019. I would have forgoten if my friend Arely didn't ask me about it. Last year was her first year vending so she got her first notice to pay from the CDTFA. This is my second time doing it. Any questions I had this year I figured out by looking at my old records. I'm glad I got it paid in time and that I saved the money to pay it. Next up are the federal and state tax returns. I'm just waiting on my W-2 from work, and maybe a few other forms. I can't wait to get it done & over with and see how much money I'll have left over for merch.
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.