Managing Quarterly Estimated Tax Payments: A Roadmap for Interior Designers

The concept of estimated tax payments for self-employed designers can be overwhelming, but it’s a fundamental aspect of financial responsibility. Don’t drive down this daunting path alone! Circaphiles is here to provide the roadmap, so you are making every important stop along the way, *beep beep!* In this blog post, we will embark on a journey to unravel the intricacies of estimated tax payments, shedding light on their importance and the vital considerations involved.

Whether you’re just starting your self-employed design career or looking to refine your financial acumen, we’ll provide practical insights and expert tips to help you budget, plan, and navigate your financial landscape with confidence!

Record Your Business Transactions

Keep meticulous records of your business activities in real time, as soon as you are making the purchase. Create a habit for yourself to input your financial transactions into an accounting software the same day (or week!), including as much billing information as possible. Questions like “Is it billable?”, “who was I with for the business meal?” or “what type of business expense is this?” should be answered in the entry line item. This process is much easier if you are recording them regularly, as it is fresh on your mind.

Adding as much detail as possible allows your bookkeeper to accurately analyze your activity, so you can understand your expenses versus profitability. Doing so also allows your tax preparer to use that information to maximize your savings at the end of the year!

What are Allowable Expenses?

In general, business expenses are eligible for tax deductions only if they are incurred solely for the purpose of conducting your business. It’s crucial to have a clear understanding of which expenses qualify, as they can significantly reduce your tax liability. Incorrect claims, on the other hand, may lead to penalties. Therefore, it’s wise to assess whether these expenses may qualify for tax benefits before you commence your expenditure. Below, we’ve compiled a list of common costs that are typically eligible for deductions, specifically tailored for self-employed interior designers:

Computer and Printer
Business Website
Licenses, Software, and Subscriptions
Phone and Internet
Project-Related and Networking Travel
Automobile Mileage
Health and Business Insurance

Common Tax Deductions for Self-Employed Designers

Tax deductions are what you take out of your taxable income, lowering the total income on which you can be taxed. Therefore, saving you from paying more in taxes. Here is a list of some self-employment tax deductions:

Credits:

Focal Point Bookkeeping

Go Self Employed

Investopedia