MENU
SEARCHIf you're self employed, the IRS expects you to make estimated tax payments throughout the year. Tax Attorney Tina Azarvand answers your questions on tax payments and offers advice on how to make it easier.
Tax Attorney Tina Azarvand helps salon owners and independent stylist stay out of trouble with the IRS by explaining key points regarding estimated tax payments for the self employed.
Running a salon or working as an independent hair stylist brings its own set of challenges, and one aspect that can often be overlooked is managing taxes.
Whether you're a salon owner or a freelance stylist, understanding and meeting your estimated tax obligations is crucial to staying on the right side of the IRS. The guidance below breaks down the basics of estimated tax payments to help you navigate this often-confusing terrain and keep financial affairs in order.
Unlike traditional employees who have taxes withheld from their paychecks, self-employed individuals, including salon owners and independent hair stylists, are responsible for paying their taxes throughout the year. Estimated tax payments are quarterly payments made to cover income taxes, self-employment taxes, and any other taxes owed.
If you are self-employed and expect to owe $1,000 or more in taxes when you file your annual return, you are generally required to make estimated tax payments. This applies to salon owners and independent hair stylists who are sole proprietors, partnerships, LLCs, or S corporations.
Calculating your estimated tax payments can be a bit tricky, but it generally involves estimating your annual income and working with a tax professional to apply the appropriate tax rates. One approach is to use last year's tax return as a starting point and adjust for any changes in income or deductions. To calculate your estimated tax liability, you can use IRS Form 1040-ES, which provides a worksheet to help you determine the amount you should pay each quarter. Keep in mind that if your income fluctuates throughout the year, you may need to recalculate your estimated payments to avoid underpayment penalties.
One common pitfall for salon owners and independent hair stylists is not setting aside enough money for taxes and it can be challenging to avoid using every earned dollar to cover business expenses or personal needs and also save for taxes. A good practice is to set aside a percentage of received income for taxes.
Enrolling in the Electronic Federal Tax Payment System (EFTPS) may make the process smoother. EFTPS allows you to make electronic tax payments directly to the IRS, providing a secure and efficient way to fulfill your tax obligations.
The IRS imposes penalties if you underpay your estimated taxes or make late payments. Staying proactive and estimating income and adjusting quarterly can help avoid these penalties at the end of the year.
Understanding and managing estimated tax payments is a vital aspect of financial responsibility for salon owners and independent hair stylists. By staying informed, setting aside funds regularly, and utilizing tools like EFTPS, you can ensure that your tax obligations are met without unnecessary stress or financial strain.
The IRS offers many collection alternatives for businesses and individuals that cannot afford to pay their past due taxes in full. These collection alternatives include submitting an Offer in Compromise, entering into an Installment Agreement, or being placed into Currently Not Collectible Status. In addition to offering collection alternatives, the IRS provides penalty abatement under circumstances through the First-Time Penalty Abatement and Reasonable Cause Penalty Abatement programs.
Not sure where to start? Contact Azarvand Tax Law at (410) 698-4005 or book a free consultation online at AzarvandTaxLaw.com
About the Author: Tina Azarvand is a Tax Attorney and is the founder of Azarvand Tax Law. She assists businesses with preventing, defending, and resolving tax controversies with the IRS and local taxing authorities. In 2023 and 2024, she was selected to the SuperLawyers: Rising Stars list, a distinction that less than 2% of attorneys receive.
Originally posted on Salon Today
LifeSpa leader Ali Yanez explains why strong mentorship, predictable income, meaningful recognition and the right work environment help beauty professionals build careers that last.
Whether a beauty professional chooses a commission salon, booth rental, salon suite or salon ownership, the common thread is having more choices than ever before.
Sport Clips Haircuts will host its inaugural "Level Up Live," a first-of-its-kind virtual event that combines live haircutting education, career inspiration, product knowledge, and employment opportunities for licensed stylists and cosmetology students nationwide.
Orthopedic PT reveals three daily exercises plus ergonomic advice that can help salon professionals avoid the aches and injuries caused by standing, bending and repetitive overhead work.
Four publications for beauty industry professionals to enhance their leadership skills, financial awareness, professional growth, and joy!
Salon suite pioneer Karen Kaminski argues that the next evolution of independent beauty businesses won't be defined by beautiful spaces alone, it will be driven by smarter systems that help professionals spend less time on administrative work and more time serving clients.
At a time when many LGBTQ+ people felt compelled to hide parts of themselves, Carlos Valenzuela found a career in beauty and a community that offered opportunity based on what you could do and how well you could do it.
Whether it's social media, fashion, film, art, or culture, Chaz Dean advises stylists to stay aware of what's inspiring people. Take the elements that make sense for you in these five lessons learned through a life in beauty.
For Jessica Domoney, building a successful career isn't about saying yes to every opportunity, it's about protecting your time, investing in yourself and creating an experience clients won't forget.
MODERN SALON sat down with Samuels to discuss the book, beauty education, mentorship and the habits that help beauty professionals thrive.
"The mistake people make is treating AI like a vending machine instead of a personal assistant." Digital marketing expert Scott Moon shares how beauty professionals can use AI while staying authentic
Real-world advice on creativity, consultations, color, burnout, business, boundaries, inclusivity, client care, and career growth from educators and industry experts.
Real-world advice on creativity, consultations, color, burnout, business, boundaries, inclusivity, client care, and career growth from educators and industry experts.
Today's clients are hearing more about longevity, biohacking, inflammation, and healthy aging than ever before. This article explores the science and language behind the skin longevity movement, and what it could mean for client consultations, treatment recommendations, and professional credibility.
Licensed to Thrive, Anna Manukyan's all-in-one beauty career and financial masterclass, is being gifted to professionals who enroll in L'Oreal LEVEL Rewards for a limited time.
From breaking free of external validation to creating joy-based goals, discover a more sustainable and fulfilling path to success.
A full day of education for hairstylists and salon pros focused on pricing, personal branding, client experience, social media, and long-term career growth.
