We understand that taxes are necessary, but the fact is that they take a good chunk off your income. What’s more, they are pretty troublesome to compute and account for, especially when you’re doing the filing yourself. Many models are confronted with this problem, regardless of whether or not you’re freelancing or under an agency—especially since taxes aren’t usually taken out of the pay that comes with each job. That’s where keeping all your receipts and income records comes in.
Many working models will file their taxes quarterly in order to minimize their payments, some decide to simply wait until tax time and pay it all at once. Either way, to make things easier for you, we’ve made a list of things you can do in order to keep your records and receipts organized, which will really help you when the fateful day of tax filing is upon you.
Have a receipt folder, envelope, or booklet handy
It’s not enough to record and track modeling expenses; you need to make sure that you keep these receipts and records stored somewhere secure. Make sure you always have something with you that can help you store your receipts and vouchers, so that they’ll stay in good shape by the time you reach home and put it into your preferred storage. Keeping them in your wallet or in a pile on the counter just won’t do—you can crumple, rip, or lose your valuable receipts.
In addition, try to make sure that you make copies of the receipts because the print on some of them can fade over time or get ruined. If you have access to a scanner, digital copies are also an excellent way to preserve your records.
Microsoft Excel, or comparable spreadsheet software, is an amazing tool for recording your expenses.
Keep track of work-related expenses, too
Don’t just keep receipts of income—you also need to keep track of any expenses you had in order to properly compute your tax. You will have to learn which items you can and cannot deduct from your taxable income (clothes are non-deductible, for example, save for some really particular specialized items), so if you’re not already too experienced or well-versed on this subject, it’s best to consult the relevant government website for help and maybe you can even enlist the aid of a trusted CPA or tax accountant just to be sure.
Having a haphazard approach to keeping receipts and records won’t do you any good, and you’ll just get more stressed come tax time. The main thing here is that you need to be determined to organize your records so that you won’t misplace or lose anything. Keep at it, even if it seems like a hassle to do at the moment, because the relief you feel once tax time rolls around will be all worth it.
At the end of the year, working models can have made a lot of money and if not prepared, be looking at a pretty daunting tax situation. By keeping track of your expenses and receipts (mileage, parking, tolls, etc.) you can help minimize some of the hurt. These deductions will surely help in the long run and are well worth the small headache of filing or recording in a spread sheet. Many models will file their taxes quarterly as to minimize their payments. But for those looking to pay all at once, keeping records can help you prepare for tax time so it won’t catch you off-guard. We hope the suggestions we have above will help you in this effort.