King County Taxes - FAQs

April 2, 2020

What does the County tax us on? How much are the taxes?

The county taxes us on property:
1 - real estate (land and buildings)
2 - "personal property" (equipment)

If your business owns any land or buildings, please contact them directly.
For "personal property", totaling OVER $7500, we pay about 1% in taxes. (We owe nothing if the value is under $7500.)

Do I have to report to King County?

Technically speaking, ALL businesses must register with King County and make a report every year. Realistically speaking, many micro and small businesses do not know about the County, and are not registered, and it has not been a problem (so far). One similar situation is the Speed Limit. Many people drive over the speed limit, but never get a ticket—especially if you're over by only 2-5 mph. I cannot give any advice about what to do, but want to give you some context so you can make your own decision!

What counts as "personal property"?

"Personal property" is a funny term. It sounds like the opposite of business! But it IS the term for equipment and supplies that you use to do business. Like: desk, shelves, computer, printer, art equipment, and even office supplies. Think of it like this: it's property that we can pick up and carry, on our person.

How do I register with the county?

Someday, I'll have a blog post on this...for now.......)
There is a form to fill out, either on paper or as an interactive PDF.
To find it~
1
Go to the eListing page
2
Look on the LEFT side Navigation
3
Click the "Report New Business" button
4
It will download a Word document
5
It asks you to list "Owned Business Assets" ~ these are all the physical things your business owns (furniture, tools, computer) that do NOT get consumed.
6
Notice, right underneath the the "Owned Business Assets" subtitle, there's a small box where you need to list "Supplies Monthly Cost". This is for things like paper and ink, things you use up.
7
Send in form—either through email or snail mail.

Call the County with any questions! 206-296-5126

What happens after I register?

The county will add you to their system, and will most likely send you an email. Then, the following calendar year, you report any additional equipment the business has acquired, and/or any increases in supplies.

IF the total exceeds $7500, the business will be taxed about about 1%.
IF there's NO CHANGE, then we're still required to send in a report saying so.

How do I make a report to King County?

Go the eListing on the King County page.

If you need help, you can reach the County by phone or email. Don't be shy, it's their job! Here's a quote from the website:

"DID YOU KNOW?The assessor's staff is available to assist you in any way we can. If you have question or concerns, please feel free to call us at 206-296-5126."

43 Ways to Work On Your Business - When you have Unexpected Free Time

March 17, 2020

ROUGH DRAFT - inspired by the Coronavirus.

Have some unexpected Free Time? Want to get something done on your business, but not sure what to do? No problem! Read on to see a Master List of ways to work on your business, plus some strategies below.

Why do I need a list you ask? Because…once you sit down to ponder the free time, and what to do, it’s easy to draw a blank or get distracted. Next challenge, once you do start thinking, it can be overwhelming. “I need to update my website, order business cards, work on bookkeeping…which one do I do?”. This brings up one of our biggest enemies, Decision Fatigue,…we don’t know which to choose, so we go back to Facebook, email, or wondering around aimlessly. All of those are fine, except when we’re trying to make progress on something.

Free time is your opportunity to work on things that are Important but not critical. These important tasks are the keys to making your future life easier.

Below is a big list. First, here are my suggestions for working with it.

Jar

Print out the PDF version of the list. Cut out the options. Throw away the ones you don’t like. Put the ones you like in a jar. When you have free time, pull out a slip of paper. If it sounds helpful, doable in the moment, get to work. Don’t like it? Pull out another. Keep repeating until you do.

Top Ten List

Pick ten of these tasks. Put on a list. Each time you have some unexpected time, look at the list. Pick the easiest one.

Two-DO List

Look at the list. Pick two tasks. Write somewhere visible. On post-its on computer, on calendar, on your fridge. Whenever you’ve got time, work on one of them. When you have time again, work on the other. Repeat.

Roll some Dice

Use an online dice roller. Or, find 3 - 5 dice. Roll one die to determine how may dice to roll. Now, roll the dice, pick the item on the list with that number. Do that task. Don’t like it? Go again. Still don’t like it? Look over the list and pick one.

Current Master List - A work in progress.

1 - Review your website.
Just read everything first. Go back through, make a few changes as you go. If needed, make a list of future updates and changes.

2 - Update pictures.
Upload new ones, or make appointment in the future with photographer.

3 - Get a head start on taxes.
If you’re not sure what to do, read this post: How to Prep for IRS Taxes

4 - Do some business analysis.
Look at each quarter / year. Figure out profits for each, types of clients and work offered. Make some predictions for the future. Record any changes to make.

5 - Mini Retreat – Big Picture View
For options, read this post: How to do a Mini Retreat - Business or Personal

6 - Time planning – weekly schedule, monthly, year.
Print out worksheets or make your own. (Click for Weekly Flow, Year -at-a-Glance.) Start with a clean slate. Add in required activities. Look for things to cut. Add in top priority activities.

7 - Update LinkedIn profile.

8 - Review all digital presence.
Make adjustments if needed.

9 - Get ahead on newsletter, Insta posting, other social media.

10 - Digital clutter clear out.
Look through computer files. Delete old items. Adjust folders as you go. Archive old files.

11 - Paper work and files.
Go through paperwork. Look through everything to pull out old documents to recycle/shred.

12 - Bookshelves.
Pull all the books down, dust. Look through them. Give away old books. Perhaps stack in a new way.

13 - Bulletin board / vision board.
Make a new one, or re-do current ones and start a new one.

14 - Visual Reminders
Make posters for the office or fridge – with whatever you need to be reminded of – routines, goals, plans, schedule.

15 - Self-care plan review.
What are you currently doing for self-care? What do you wish to add? Anything to cut? What’s your budget? Make adjustments and add activities into your schedule.

16 - 3 Ideal Clients
Check out this post - Three Ideal Clients - Book Excerpt

17 - Review policies.
Adjust or add.

18 - Update Terms / Contract.

19 - Look at prices and adjust.
Perhaps add new fees, e.g. travel, late fee, reschedule, rush work.

20 - Development new offering or class.

21 - Brainstorm new marketing materials.

22 - Create Pinterest board.
For inspiration/ communication with designer, or to draw from yourself.

23 - Research people to hire / network with.

24 - Organize photos and imagery for marketing.
Update labels, perhaps put in one folder.

25 - Collect a copy of all your materials and put in one place.
For example, all ads or brochures, business cards – put in a notebook. Or all of your handouts, print and put in a folder / notebook.

26 - Take inventory of supplies.
Reorganize supplies. Label.

27 - Make a bingo card of goals. - See below.
Pick 5 categories. Write in the spaces under the BINGO. Under each, fill in tasks or accomplishments. Give yourself rewards when you get a line or blackout. I used this for marketing my book after it was written. It’s still on my fridge!

28 - Get all tax + legal info in one place.
Online and in print form.

29 - Research swag you might want to make.

30 - Research boutiques, galleries.

31 - Research events in the area for small business / community / your field.
Make a calendar of when they happen.

32 - Research events you might want to sponsor.

33 - Research charities / causes to give money or time to.

34 - Reach out to old friends and contacts just to say hi.
Only if this feels legit and you want to, with no direct business agenda.

35 - Follow up with people you’ve talked about collaborating with.

36 - Create a class or workshop to offer for profit, or as a volunteer.

37 - Do a numbers review, by month.
Check out these worksheets: Service Providers, No Sales Tax; Services Providers, with Sales Tax; Product Makers (Retail/Combo).

38 - Make a list of Household Bills
This can be useful when making your own Salary goals. Click here for a worksheet.

39 - Give yourself a Reward.
Because you deserve it. Click to see a menu.

40 - Find some books to read, related to your work.
Consider going to the bookstore to be able to browse in person.

41 - Research a vacation or work trip.
Put it on your calendar.

42 - Do some math to give yourself a raise!
Update on website and materials.

43 - Send an email or thank you card to a role model or someone who inspired you.

Okay, that’s the big list. You don’t need to do all these things! It’s just a menu. Use one of the strategies above to make your own plan. Either the Jar, Top Ten, Two-DO list, or Roll the Dice.

♥

Please, let us know how it goes! Share any stories or suggestions in the comments below.

Cheers,

Jenny

Click on the image to get a downloadable pdf.

Here’s the Bingo Card I made after publishing my book. It helped me stay on track and celebrate successes!

How to Take a Mini Retreat - Personal or for Business

March 17, 2020

This is a sketch of a post to come. It is not complete.

Most days, in order to do our best work, we’re focused on serving the client, handling tasks, details, following-through. In other words, we’re in worker-mode. That’s great and perfect for the day in and day out.

It’s also necessary to lift our heads up, and check the map, look at the big picture. Be in boss mode.

One way this duality has been described is being in Mouse-mode (on the ground) vs. Eagle mode (up in the sky with far vision). Most of us know how to do the Mouse Mode, and are very good at it. Eagle mode, is sometimes harder to do. It’s sure easy to forget! It’s essential for staying happy at work and as a human. Why? It’s where we get to lift our heads up, pull back, step away from the work and check in with ourselves. Are we happy? Are we bothered? Why or why not? From this place, we can make decisions, adjustments, and then go back into Worker mode.

Setting up your Retreat

[Section is ROUGH]

Here are some principles to keep in mind when choosing a location.

Important for your body to be comfortable - choose a place where you feel good, where it feels easy to be comfortable. Like the warmth? Go to a warm place, or someplace where you can turn up the heat, maybe get in a hot tub. Like to be snuggled up in sweaters or blankets, then choose a cooler spot.

Think about the senses too - what do you want to see? Hear? Taste? Touch? What helps you to relax and feel free … want to be by the ocean? In the deep forest? By a river? What foods + drinks will feel lovely? Bring your favorite music, or find a place to be silent.

Help your mind disengage - put on auto-reply, or perhaps turn off your phone / computer and hide away. Make as many decisions ahead of time as you can - about meals, the schedule, the plan.

Give your mind time to wander or play -

Alone or with others? - Do you want to be alone, to go into a cave, to follow your own rhythms? Or, would it help to have others around, to compare notes with? Or to relax with in the evening, as a break from thinking?

Options:
Go on a trip - stay in hotel/airbnb
Go to a retreat center
Kick everyone out of your home, get it set up as a retreat space

•

Retreat Format

For now, here are some different formats / question prompts. This is a menu to choose from, not a list of things to do. You can use these for business and/or life. I tend to do both at once. These prompts can be used within 1-2 hours, or 1 day, or even a week.

1

What’s working / not working?

Make a list under each of these questions.
Now, look at what you can change or adjust to fix what’s not working. Make a list. Pick 1 - 5 changes to make. Adjust your schedule, policies, as needed.

2

Past / Present / Future

Think about the past season. Write or draw all the things you’ve been doing - events, projects, clients served, business chores. Your schedule. Everything. How did you feel? What are you proud of? What was difficult. Look for a word or two to describe this chapter of life.

Present moment. Try to tune into where you are today. Right now. Scan your body. What’s going on with it? How are your emotions? What do long for? Desire? Where does your mind want to go? How do you describe yourself today?

Future. What do you wish for the next season? What is required to happen? What do you want to add? What do you want to take away? What are your top priorities? How would you like to picture yourself __ months from now? What do you need to make this happen?

3

Relax / Play / Inspiration

Whatever time you have set aside for this retreat, we’ll want to split into specific ratios.

Relax - the first 50% of the time set aside. When I mean relax, I really mean it … escape, indulge, guilty pleasures. Whatever sounds luxurious. Like so lovely, you wouldn’t even want to tell anybody.

Play - the next 25 - 30%. Go do something with your body, where you get to play. Ideally in nature. And, by that, I mean you get to experiment, try, imagine, without consequence. This might be walking, collecting rocks, and making in a line. It could be building a sandcastle. Collecting materials to make a mandala. Adult coloring books. Making sugar cookies to decorate. Go swimming. Build with legos. If work ideas come up, great. If not, great. Just let the ideas float around.

Inspiration - the last 20 - 25%. Now, check in with yourself. How are you feeling? If you can, journal freely for the remaining time. Here are prompts if you need them. Do you have any new ideas? A desire? A strategy? What do you want more of? What do you want to be rid of?

Usually, at least one potent idea will rise to the surface for you to act on.

•

At the end of your retreat - decide on 1 - 5 changes to make in your business or life. It could be a new schedule, a new policy, fill out a Stop Doing list, new project, refining your clients, or even just a new way of thinking. Or, just the general feeling of being caught up with yourself.

Happy Retreating!

Three Ideal Clients - Book Excerpt

March 17, 2020

Who Are Your Ideal Clients?

Who are the people you want to work with? Thinking deeply about who they are will help you figure out what they need, where to find them, and what language and design will get their attention. It will also help you decide when to accept work, and when to politely decline.

It’s hard to describe an imaginary group. To help you out, work through the following exercise.

Create three ideal clients that you would love to work with or to sell products to. Sometimes these are called avatars. Choose them so that they represent different types of clients/buyers. Really think them through; flesh them out. Name them, describe them, build a picture of them in your head.

Get three pieces of paper - one for each idea client. Draw a picture in the middle of the client, or perhaps cut an paste images. Use each page to bring your ideal clients to life! Afterwards, we’ll make some observations.

For each one, fill out the following ~

For Individuals:

Name

Age

Religion/politics

Where they live

How they dress

Family

Career

Aspirations

Hobbies

Everything you can think of

For Orgainzations / Companies

Name

Size

Services/Products

Location

Design/Look/Brand

Who they work with

Company values/causes

How long in business

Community connections

Everything you can think of

• • •

Now, look at your three clients. Let’s make some observations.

What do they have in common?

Where do they hang out?

What do they like?

What do they need that they’re not able to get?

What ideas, images, and values do they have in common with you and your business?

Use this knowledge to help you when choosing words and tone in your marketing materials, such as colors, design, and imagery. Think about them by name. For example, Would this make sense to Sally, the Florist in Ballard?

Continue to refine these three ideal clients. Carry them with you as guides.

How to Prep for IRS Taxes - All at Once

March 6, 2020

This is for anyone who needs to prep for IRS taxes all at once! Perhaps you “put it off until the last minute”. No problem! You’re safe here. Or, perhaps you just like doing all at once, and scheduled a day for it. Cool! There are many ways to approach taxes, and they’re all just fine. Read more about Tax Prep Styles to define yours. If you wish to break it up over multiple days, click here.

Okay, here we go.

Overview of the process

Collect stuff.
Find your numbers - wherever they are.
Add up in categories.
Put into a worksheet. Provided.
Then you’re ready to file!
Store your work in one place.
Bonus - Reward yourself.

Print the sheet and follow directions.

And/or read on.

1

Warm Up / Prep your space

Turn off email. Get some nice music, clear off the table. Use the worksheet to find everything that you might need. Get some favorite food or snacks.

2

Collect everything you can find

Use the worksheet as a guide.

3a.

Find your Gross Sales

This is the amount of total payments you received from clients / customers.

Ways to find this amount:

If you have tracking software, like Quickbooks or something specific to your practice (like Simple Practice for therapists), then get an Annual Report for the tax year.
If you’ve used one bank account for all deposits, simply look at the December statement and find the Year-to-Date deposits.
If you’ve used a spreadsheet, then highlight all the cells of income, then notice the Total.
If you have an income record, look there.
If none of the above, go to the next step.

Important Note! If you received 1099-MISCs for some of your income, you will need to have all of those available. Know the subtotal for all 1099-MISC income. AND, know the total for all other payments.

3b.

Make an Income Record

• Have an income record? Print it out.

• If you have software, print a list of all income.

• If you’ve used a bank account/s …search transactions from Jan. 1 - Dec. 31 of last year, and then filter for Credits Only. Download and print.

• Need to make one? Use your calendar to make a list of all appointments or sales. Write the amounts earned next to each one. You can do this on paper or make a spreadsheet.

• Have invoices? Print them out, staple together as your record.

3c.

Expenses by category

Find all evidence of purchases for your business. Could be ~

paper receipts
online receipts
bank statements
credit card statements
utility bills

It doesn’t matter how you paid for the purchases, all of them can be deducted. (If you’re a sole proprietor or single member LLC.)

Now, we want to add them up by category. Use the sheet you already printed to see the categories. For more info on what expenses go where, click on this worksheet.

Have software?

quickbooks - print the P and L for last year
other software - print P and L for last year, or print all expenses then categorize

OR You can add up these amounts using ~

pen and paper
excel spreadsheet - type in date/amount/vendor by category
excel spreadsheet - download all expenses then, then categorize and sum

Email me if you’d like to use my spreadsheet. Please allow 3 - 5 business days.

Important Note - It doesn’t matter how you add them up! As long as you have subtotals for each category. And evidence for each expense.

3d.

Special case expenses - mileage and office

Did you drive for your business? Most any place that you drove, except to an office, can be deducted. There are two ways to claim this expense - actual cost of vehicle or mileage. I will only cover the Mileage Method here.

Mileage

What you need to find

total miles for the vehicle for the whole year
total miles for business use
total miles for personal use

If you have these figures, your accountant or tax software will do the rest.

Ways to find mileage

Used an app? Log in to find your report for last year.
Have a record, great!
Calculate miles - look at your calendar, make a list of dates/locations and use Mapquest or other site to calculate the mileage of your trips.

For total miles, do your best to guess your odometer reading for last January 1. Perhaps look at oil change records. For the ending mileage do the same. (In the future, make a note to yourself to write down your Odometer miles each January 1st.)

Office

There are two ways to claim this expense. I will only cover the Simplified Office expense here. Calculate the square footage of your office.

The accountant or tax software will know what to do.

3e.

Payments You Already Sent In

This is majorly important!!!!

These are the Estimated Quarterly Tax Payments you sent in, if you did. Only you can provide this info. Find the dates and amounts when you sent these in. Otherwise, you will not get credit for them!

Not sure? Look through all of your records, your bank statements, email. And/or call the IRS.

4

Check the worksheet

Look over the worksheet at everything you’ve collected. Try and think if anything is missing. Did you have any more business expenses? Any accounts you forgot to check? Find anything missing and add them. At some point, decide to be done!

5

Plan when to file

Doing this today? If not today, choose a day and put on your calendar. Not sure how to file? Read this post.

6a

Store everything

Keep these things out: Worksheet with all your figures AND any 1099-MISCs.

Gather all of your receipts, statements, calculations, notes. Print out and put into a box, or envelope. Label with the Tax Year.

6b

Reward yourself!

Phew, that was a lot of work. Be nice to yourself this evening. Maybe order take-out or go out. Maybe a bath or binge watch some shows. Maybe online shop for something you’ve wanted. Just be sure to be nice to yourself AND get a reward…or put one on your calendar asap. Here’s a menu if you’re not sure what you need.

♥ ♥ ♥ ♥ ♥

Was this helpful? If yes, please considering leaving a Tip in the Tip Jar …. and/or forwarding to a friend. Thanks so much!

: ) Jenny Girl Friday.

Podcast Notes ~ On Vibrant Visionaries with Heidi Bennett | We talk money + taxes + self-compassion with

February 29, 2020

I was so psyched to be on the Vibrant Visionaries podcast!!! … with magical Heidi Bennett and I talk about Money + Taxes + Self-Compassion. (Strategies too.) She used a great phrase, "turning your inner critic to your inner warrior".

This is for anyone needing a little pep talk to face tax season, or numbers in general. 🎉Applies in any city. Please SHARE freely with friends!Two primary messages - You can do it + be nice to yourself.

In this episode ~
We talk about feelings, stories about money, stories about ourselves, self-compassion and some strategies.

Money and taxes bring up a lot of feelings! For many people, especially creative people who have been successful in their field (I'm guessing this is you!) ...it can feel stressful, confusing, surprising, triggering, anxiety-producing. Why is this so hard?

We explore these emotions, as well as how to change our stories and approaches so that we can feel better and get results! It is one of my favorite topics, and, haha, you can hear I get a little enthusiastic at times. My belief is that you can figure this out, you can grow your numbers!

Listen to Podcast

Working with Heidi

You know when you meet someone, and you think, "This person just gets it. I hope we become friends." That's Heidi. She's a coach for Multi-Creative Professionals in California, with a huge focus on self-compassion. And I just know, she lives it and breathes it. Heidi was both incredibly grounded and inspiring to spend time with. We're hoping to collaborate someday! One phrase she used in the episode was "turning your inner critic to your inner warrior." I love that. Read more about Heidi at heidibennett.com.

What I love about this episode

We laugh a lot. We share real feelings. And, we talk about the true first step in getting better with numbers - positive feelings and context. I like that we explored stories, self-management, being reasonable, being nice to yourself, instead of nitty gritty tax details. (Which you can always learn more about when you feel empowered.) The goal is for you to feel inspired to embrace knowing your numbers. I think being the boss of your numbers is incredibly powerful!

Offer

Want a copy of my Money Garden excel sheet to try? Email me, and I will happily send it to you! Please allow 3 - 5 business days. It has tabs for Income, Expenses, P and L (Profit and Loss), Monthly Check-ins. Of course, you can customize to your needs. After 7.5 years of doing this work, and working with hundreds of people, it's my favorite way to keep track of numbers.

Ask

So....er.....I still am not able to post on Instagram yet, since I don't have a cell phone. One of these days, I will get an app. Meanwhile, if you feel so moved, can you pretty please share on Instagram, check out Heidi's Vibrant Visionaries, and/or LIKE the post, or tag. And/or on Twitter. Thanks for considering!

instagram.com/vibrantvisionaries/

twitter.com/vibrantviscast

Thank you for tuning in! Wishing you ease ... and even some fun this Tax Season!

Sole Proprietor or LLC: Which is best for me?

October 25, 2019

When you work for yourself, you fill two roles in one. The employee and the employer. In order to do this, you have to create a business entity that essentially hires you. It feels a little like make-believe play – All I want to do is my work! – but it is necessary. The two most common options are sole proprietor and limited liability company, or LLC.

It is the first decision that you need to make, because it determines your legal status and name options. And, you’ll be asked about it right away when registering your license.

Sole Proprietor

Advantages: simplest and cheapest
Legal Name: must be your name
Disadvantage: liability – if someone sues your business, they are suing you

In this case, you and the business are considered one in the same. There’s no real structure to set up or maintain. You simply are required to have licenses and pay taxes. It is free. There are no additional obligations, and no special benefits. Except that the paperwork is the most streamlined.

There is a risk, though. If someone sues your business, they are suing you too. Meaning, if they win and you owe them money, it comes out of your personal accounts. In a worst case scenario, you’d have to sell your house or drain accounts to pay them.

You can do business under a different name, called your trade name, or DBA, Doing Business As. For example, Jane Doe’s legal business name would be Jane Doe. She could do business as, Polka Dot Consulting. She just has to register this name, so her business activity is traceable to her legal name. These only cost $5 each. When you apply for your license, you can choose 1 or more.

LLC

Advantages: protection from lawsuits, looks official
Legal Name: must include a version of LLC*
Disadvantage: it costs some money each year

In this case, the business is a company that is separate from you. It offers a layer of protection. If someone sues your company and wins, then they can take company assets (not your personal ones). In my case, this includes a small business savings account, my computer, printer, and lots of great books. The idea is that your home and personal monies are protected. Having said that, it is possible to get around that protection – depending on the case and the lawyer. If you want to know more on the subject, I suggest meeting with a small business lawyer to share more about your specific situation.

You must apply with the Secretary of State to be granted this entity. It costs about $200. And, you must renew each year on the anniversary month, for about $80.

The LLC also looks serious and cool. For people that don’t know, it helps you to look official. This can be a boon for certain types of business. You can also use DBAs. (But they may not include variations of LLC.)

Concerning the IRS – Good news!

A cool thing is that you don’t have to do anything different for the IRS! That is, if you are a single-member LLC. Because you are still a one-person business, and there’s no dividing of profit, the IRS lumps you in with Sole Proprietors. In fact, they refer to you as a “disregarded entity”. You are not regarded! You are ignored. This is great because it keeps your paperwork simple.

•
In the end, both serve different purposes. Often - people who are tight on cash, or starting before they're totally ready, or intimidated by the LLC – choose sole proprietor. For others who have the money, and/or are really committed to their vision, tend to go for the LLC! You even get a certificate with borders and a golden seal to frame.

If you have questions, please, get in touch. Click here to read a post on how to get licensed in Seattle.

Happy Working,
Jenny Girl Friday

Girl Friday LLC
DBAs:
Jenny Girl Friday
Jenny MacLeod
Girl Friday
girlFriday

*Limited Liability Company, Limited Liability Co., LLC, or L.L.C.

What's Your Tax Prep Style?

March 11, 2019

Dear Readers, this is an evolving blog post. I’d love to get your feedback on which terms / descriptions work or don’t work for you!

Work with your nature.

This is one of my favorite guiding principles. And it's more important than ever when it comes to chores or anything that feels tedious, new, overwhelming.

What style fits you? ....when it comes to working on IRS tax prep?
(Nicknames are works in progress.)

♥ The truth?: I ignore it until the last minute, then scramble and get it all done. (Phoenix)
♥ I like to start as early as possible. In fact, I already have! I work steadily until the job is done finished. (Early bird)
♥ I do best breaking up a task. I prefer to work over several sessions. (Marathoner)
♥ I like to do the job all at once, on a planned day. (Personal work party)
♥ None of these fit exactly/I'm a mixture. (4 Leaf Clover)

The idea: choose your style. Name it. Claim it. Plan for it. Be at peace with it. Below are a few ideas for each style.

P.S. If you're new to this, I suggest reading the Marathoner description as well as your style.

♥

Phoenix

Do your thing! No reason to fix something that works. When the time comes, find this email and these tools to offer some help: All-at-once Prep + CalculateBasic. If needed, here's an article if you get stuck somewhere. Perhaps, mark off a day or two around 4/12, 4/13, 4/14 to do the work. Lastly, if you can, clear your calendar on 4/15 or 4/16 to take a break, go to the spa or drive out of town to reward yourself and recover. (I'm keeping this short, because your mind is busy with other things right now. You'll get to this later.)

♥

Early Bird

This message to you might be too late because you're probably finished. In case I caught you in time, here's an article that outlines the whole process. And a worksheet to capture all your numbers: CalculateBasic. You'd probably like to fill out this second sheet as well: Calculate Next Level. Before you get too far, please be sure to choose a reward for yourself. Set aside some money for it and plan whatever time it takes. Yes, you start early because it's your nature, there's an urge to. That's cool. Still, let's reinforce and reward that nature! We want to keep you happy in your job. If you feel a bit guilty, then it's probably the right amount.
Oh, and here's an article on filing options. As you know, it feels so good to get the appointment for the actual filing on the calendar, whether it's meeting your accountant, filing yourself online, etc. Heads up, there are a few changes this year! A new 1040 and a few new rules. I'll be sharing about that soon. I'm just mentioning it so you plan in a little extra time. If you'd like to dive into research now, here are the 1040 Instructions, start on page 6.

♥

Marathoner

Slow and steady wins the race! And, "Life ain't a track meet, it's a marathon." Ice Cube. You know that working slowly over time means less impact on your life, the pain can be spread out. If you've done this before, you've probably got a system already. If you're new / as a reminder to experienced folks: plan several work periods over the next 4 - 6 weeks. Prep time really ranges from 2 hours to 12 or more. Just take your best guess and plan in the time. You can pick a regular day + time, like "Fridays from 1 - 3pm", or choose a time block like "1 hour" to fit into your weekly schedule.
One option is for you to follow along with the Sidekick Service Tax Prep series coming out soon. I've broken the process into 6-7 steps, and will send an email about each one...so you can follow along with me. If you'd like to space it out yourself, take a look at this article, with worksheets for each step. Or, look at this All-at-Once Prep Sheet to plan your own sessions. I also suggest choose a little treat for each work session and a big Reward for when you're all finished.

♥

Work-Party Girl

You like to get in the zone; to give this task your whole attention, all at once. Like gearing up for party or 5K, you want to collect all your tools and resources, create the space, and get it done, and done well, and then shut the door and be finished. Tips for you (if you're new/need reminders): schedule three days on your calendar: 1- Personal Tax Work Party, 2- Time OFF to recover/reward yourself, 3 - Follow-up Tasks.
Create a space in your house to collect all of the things you'll need. Tax documents coming in the mail, bank statements, receipts, etc. Perhaps print out this sheet Collect Stuff. You can use it to slowly collect items prior to your Party day, or, do it first thing that morning. Consider getting a friend to hang out with you. Oh, and if you're the cook in your house, arrange for someone else to handle meals or to go out for dinner. Be sure to have a breakfast and lunch you love, plus snacks on hand. On that day, I suggest printing out these two sheets: All-at-once Prep + CalculateBasic. Here's an article if you run into questions.

♥

Four Leaf Clover

Perhaps none of these fit, you're a combination, or you're new to this and just don't know. Or, maybe you're a rebel and as soon as someone tries to type you, you don't like it! That's cool. I get that we're a spectrum and not everyone fits into boxes. A few ideas. First, find a way to name your own style. Think about what's true, even if you're different/changing all the time. The reason? It's empowering to claim what we do naturally and then we've got a strategy to stick to.
Next translate your style into some logistics. Do you want to plan ahead, wait until inspired, ignore? Three Options for you. 1) read through the tips for the other styles, and whatever sounds good/calming/easy, then do that. 2) Plan to follow along with the Sidekick Service emails over the next 6 weeks. If it sounds good, do the work suggested for each. Then, if you want to jump off at any point, please do! 3) Look at this All-at-Once Prep sheet. Or skim this article. Then ask yourself this, Now that I see all the work involved, how do I want to tackle it?

Once you discover your name + system, I'd sure love to hear about it. Please email me at jennygirlfriday@gmail.com

I'm excited to hear what you think of these Styles + Tips!

• How to Renew your LLC / PLLC (aka make annual report)

February 26, 2019

If you have an LLC or PLLC, you must ‘renew’ it each year to keep it going. Officially, it’s referred to as making your Annual Report. It’s quick and costs about $60. It’s due on the anniversary month of when you opened it.

Some reminders

This is different than your business license. Your LLC / PLLC is a legal entity that you created. It has its own limits, responsibilities and protections. It’s separate from you (like an 18 year old child). It can only practice business if you keep it alive and it is properly licensed. To keep it alive is a legal issue (vs. financial), that’s why we’re dealing with the Secretary of State.

Basic Info to Renew / Make Annual Report

TIME: 2 - 10 minutes
COST: $60
DUE: On the anniversary month when it was formed
Frustration Factor: 4 out of 10
WEBSITE: ccfs.sos.wa.gov/#/
GOVT: Secretary of State
HELP: 360.725.0377

Summary

Set up a profile if needed. Log in. Double check that your name and address is filled in for every role (governor, registered agent, executor, etc.). Get to the end, pay $60. Mark off your Important Dates List (Annual, Quarterly). Reward yourself!

Why?

LLCs / PLLCs were originally created for groups of people coming together to do business. Each owner is actually called a Member. The annual report is saying, Yes, it’s still going. Here’s who is doing which role. With bigger groups, this matters! For a single-member LLC / PLLC, it feels a little silly because generally we serve all the roles! By making this report, we confirming that all this info is the same.

Steps - Screen shots below

1 Go to SOS.wa.gov
2 Click on CORPORATIONS in the Top Nav to open the menu
3 Find CORPS & CHARITIES FILING SYSTEM
4 Sign in ….or create a profile, then sign in when directed
5 Find ANNUAL REPORT on the Left Nav
6 Search for your Business using your UBI or Name
7 Select your name from the List
8 Confirm all your information, make changes or additions if needed
9 Review
10 Add to Cart and Pay
11 Optional - print or save the pdf for your records
12 Mark as done on your Important Dates List
13 Reward yourself!

Screenshots

Voila! All done for another year. Great job on getting another business chore finished. Having said that, I hope it was kind of fun and rewarding! Your work is still alive and kicking!

: ) Jenny Girl Friday

♥ ♥ ♥ ♥ ♥

P.S. Was this helpful? I sure hope so! If YES, please consider leaving a Tip in the Tip Jar. (Unless you’ve already given an Annual Donation.)

Have any friends with an LLC / PLLC? Forward freely!

Why tips and donations? I’m currently doing all of this work during evenings/weekends. It’s slow going to build this Apothecary on the side. With more funds, I can ‘buy’ more time each month to grow the collection faster. I’m hoping to some day earn enough so it can be a one-day-a-week job.

If NO, then send me your questions, or let me know where things are confusing. I’d love to clear it up for you and other folks! jennygirlfriday@gmail.com

I got to be on the Soulful MBA podcast! Airdate: September 17, 2018

September 17, 2018

This was my first time being on a podcast, and wow, what a pleasure!

♥ ♥ ♥ ♥ ♥ ♥ ♥ ♥

Here’s the Link to listen in: Episode 97 | Jenny Girl Friday: Why Every Business A Sidekick

It’s called Soulful MBA Podcast, hosted by Jeni Barcelos and Sandy Connery. A truly dynamic duo, helping healers and wellness professionals develop thriving online businesses. Read more at: soulful.mba.

Ever feeling like license + tax stuff is super confusing? You’re not alone! In this episode, we get real about the challenges of following tax + license deadlines (and even get to complain a little bit.) I share some strategies + tips, as well as my origin story and the deal I made with my husband.

Read on to find out:

♥ how to get your FREE 1,2,Go Chapters
♥ more resources (including my go-to CPAs,)
♥ and to hear a little more to the story………. :)

A little about the 1, 2, Go Section …… and how to get it for Free

This is the ♥ of the Book. It’s a blue print for getting started. Instead of a business plan……

1 - Get Licensed
2 - Get First Customer
Go - Do your work + Set up Shop!

Section 1 is crafted exactly for Seattle. If you live in a different city, you can use the info to help you investigate what you need in your home town. Sections 2 + Go work anywhere!!! Get started quickly, build momentum, and lay in some useful and helpful habits from the beginning.

To get 1,2,Go for FREE ………simply sign up for Sidekick Services via email. (You can leave the list any time, and there are no strings attached, no up-sales. If you stay on the list, we may ask for a donation from time to time. Like NPR or Wikipedia.)

If you’re already on the list, email me at jennygirlfriday@gmail.com, and I’ll send it to you!

Resources and how to get help

There was a great question in the interview……….how do people normally get help with all this? Meaning state, city, and county taxes, in addition to IRS taxes. I answered what’s typical, that many people miss these details, how many CPAs only handle IRS taxes……and help is hard to find! (That’s why I do what I do!)

However, I forgot to share that there is some help! Here are some strategies and resources.

1 - Many CPAs will help with local taxes! You just have to ask them.

2 - If you live in Seattle, here are my Go-To CPAs. They already include local taxes in their offerings. Luke at TimberTax.co and Alexandra at HipsterMoney.com. They’re both super friendly and fun to work with and know their stuff!

3 - Sign up for my Sidekick Services. I send email reminders for meeting all local tax + license deadlines. If you live in a different city, use these reminders………as prompts to reach out to your city, county, and state to learn more.

4 - Call each level of your local government, and ask what help is available! Many city and state departments have classes, webinars, handbooks…….and will sometimes even offer 1-on-1 consulting for free! If you’re not sure where to start, call your city and ask the business specialist everything you need to know, and which government bodies you’re a part of. (Such as county, bureau, non-incorporated, etc.)

More to the story………..answers I forgot because I was nervous!

More on our Origin Story + How we’ve had to DIG DEEP

After my husband’s first year off, we committed to both being self-employed—because we came to believe in it as a lifestyle, more nourishing to our souls, to be with our children more, and to just see if it could be done in Seattle!

To that end, we built an Airbnb in our basement and emptied half our retirement. (Scary!!) Alex is a musician, and plays fiddle and calls square-dances. He might go back to Camper Vans, he’s also considering other creative work he wants to do. It has been quite a journey! We had to dig deep a lot, and only this year is it starting to get a little easier.

Favorite Rockband

I couldn’t think of one, because I make a ton of Mix CDs of Hip Hop! Current Faves: Cardi B, SZA, Big Sean. Older Faves: T-Pain, Lil Wayne, Ludacris, Missy Elliott, Rihanna

Favorite Hero from Fiction

Liz Lemon, maybe? I wanted to think of a Woman hero…….but they are far and few between. I mostly read non-fiction, and for TV/Movies, I mostly re-watch old favorites: 30 Rock, Parks+Rec, Grey's Anatomy, Lord of the Rings, Pride and Prejudice. I do LOVE the women characters in Black Panther!

A Thing I Say a Lot

To my kids: Did you brush your teeth?

To my clients and friends: If you had a magic wand……what would you do?

Wanna get Sidekick Services? Click here for tax + license reminders, walk-throughs, motivational tips and more. Asking for an annual donation of $5 - $120. Tailored for Seattle, still super helpful in other cities.

Looking for the Book? Click here to find on Amazon. Click here to find in local stores.

♥ ♥ ♥ Thanks for tuning in! I hope to meet you one day….whether in person or in email. And would love to be your Sidekick. ♥ ♥ ♥I think Self-Employed women add vibrancy to our communities and are a gift to the world. You are my hero!

:) Jenny Girl Friday

• How to CALCULATE numbers for IRS taxes: pen and paper, spreadsheets, software

March 21, 2018

[Note: This is step three of the Prep for IRS Tax process. To see all the steps, click here.]

In a nutshell

You need to report some numbers related to your business AND have some evidence to back them up (receipts, bank statements, etc.). How you add up the numbers is up to you!

The numbers (eventually) get reported on the Schedule C. If you use software or a tax preparer, they will ask you questions, then put those numbers onto the Schedule C for you.

Consider using the handy worksheets below to keep track of your numbers.

Alert: This blog post may look really complicated, and I apologize for that! It's tough because every situation is different, and I'm attempting to speak to a variety of situations in one post. ♥ Please know: once you get into the material, it usually starts to make sense. Also, I invite you to email me with any questions! jennygirlfriday@gmail.com

ProTip: Print the Calculate-Basic worksheet, and just start filling in what you know. Then come back to the post for more ideas when needed.

ProTip: Get a friend to help you with this. They can read the instructions, then together, you can figure out how to proceed.

The Calculate-Basic includes everything you need for MOST situations. The Calculate-Next Level is helpful if you're planning to file using paper forms, or if you want to predict your self-employment tax amount.

Gross Sales

AKA Gross Income / Total Deposits

Important: This number NEVER includes any sales tax collected.

You need to have a total Gross Sales number, and a record to back this up. Perhaps you already have this total, or parts of it.......or perhaps you have to create it still. Here are some options.

Different Ways to Keep / Create a Gross Sales Record

If you already have this record, great! If you need to make one up for last year, read on! The basic process is:

1 Find the payment amounts
2 Make a Record
3 Find the Total
4 Format for the IRS

1 - Find the payment amounts

Here are all the places to look:

- Bank Statements - look at deposit records
- Deposit Slips
- Copies of Receipts/Invoices
- Reports from Commerce sites
- Calendar - find all appointments and mark what you got paid for each

2 - Make a Record

Ideally, include the date, purchaser name, and amount of each.

These are options for you to choose from:

- Keep a list of all payments in a notebook
- Record payments in a spreadsheet
- Print out all summary reports from websites you use, keep as your records
- Use software or an app (such as Quickbooks or Fresh Books)

3 - Find the Total

Add up all your numbers to find your Total Payments by customers. This is your Gross Sales.
Do NOT include any sales tax collected.

- Use calculator
- Put into a spreadsheet, and use formulas to add
- If using software, go to the Reports section to get the totals

4 - Format for the IRS

Did you get any 1099-MISCs or 1099-Ks for your business? These are simply proofs of payments that someone else made to your business. The numbers on these forms should already be included in your Gross Sales amount.

> If you're filing with Paper Forms, then you just report your Gross Sales, which includes the totals on these forms. You do NOT need to list out their amounts separately.

> If you're filing with software or an accountant, they will ask you for your Gross Sales in parts. So you'll need to find the subtotals for:

___1099-MISCs
___1099-Ks
___ All other payments (including barter)
___ Total of Gross Sales

Expenses

Okay, options! Here are three of my favorite. There are more options and variations. Hopefully this will give you an overall idea, and you can create something that works for you.

Note: For evidence of our business expenses, receipts from the purchase are best. The IRS will also accept bank and credit card statements.

Pen and Paper

With Receipts

1. Look at the categories of business expenses (on the Calculate-Basic sheet or the Schedule C)
2. Make piles with your receipts in each category.
3. Add up the totals for each, and fill in the chart. Perhaps write these amounts on pieces of paper to keep track, one for each category.
4. Suggested: staple each stack of receipts together.

With Bank Statements

1. Look at the categories of business expenses (on the Calculate-Basic sheet or the Schedule C)
2. Get a piece of paper for each category, label at the top.
3. Go through Bank Statements. Find each business expense. Highlight, circle, or underline it on the statement.
4. Decide which category the expense falls in. Write each expense on the corresponding piece of paper. (For example, if you see a line for "Office Max", write the amount on the paper that labeled "Office Expense".)
5. When all expenses have been recorded, add up to get the totals. Record on the Calculate-Basic worksheet by category.

Spreadsheet

1. Look at the categories of business expenses (on the Calculate-Basic sheet or the Schedule C)
2. Label a column or separate tab with each category. (Depending on how you like to work.)
3. Go through your receipts and Bank Statements. Find each business expense. Highlight, circle, or underline on the statement.
4. Decide which category the expense falls in. Add it to the column or the tab.
5. When all have been recorded, add up to get the totals. Record on the Calculate-Basic worksheet.

Quickbooks or Other Software

1. Finish inputing/uploading all expenses for 2017
2. Find the Reports page
3. Select Profit and Loss statement
4. For the time period, select Last Year
5. Look at the report. Review each category.
6. Make any adjustments.
7. Print the Profit and Loss statement. Or, record the amounts on the Calculate-Basic sheet.

Special Expenses

These get calculated in special ways, so deserve their own section.

Special Expense - Mileage

There are two ways to deduct driving expenses. For each vehicle, choose one method and stick to it each year.

Option A: Actual expense. (Less common)

With this option, you collect and report ALL costs associated with your vehicle: gas, insurance, repairs, maintenance, and tab renewals. If you use it part for personal and part for business, you need to calculate what percentage is used for business. Then take that percentage of the total costs.

So, if you use for business 30% of the time, you'd deduct 30% of all costs associated with that vehicle.

Add this expense to the Car and Truck Category.

Option B: Mileage Deduction (most common)

For every mile that you drive for business, you get to deduct a specified amount. In 2017 it was 53.5 cents per mile. With this method, you need to know your total business miles. Additionally, you're required to have a record. The easiest way is to use an app, such as MileIQ. Or, you can keep a log book.

For most forms of filing, you'll be asked for:

___ Starting Odometer reading, on January 1
___ Ending Odometer reading, on December 31
___ Grand Total of All Miles
___ Total of Personal Miles
___ Total of all Commuting Miles (driving to and from an office)
___ Total of all Business Miles

To Claim the Expense:

If using Paper Forms
A. Calculate Total Business Miles x 0.535 =____________.
B. Add this to your Car and Truck Total

If using Software or Working with a Tax Pro
A. Have all of your Mileage Totals Handy
B. Do NOT include in Car and Truck expense
C. Provide information when asked, and they will calculate and deduct

Special Expense - Home Office

If you have a home office that meets certain requirements, then you can make a deduction. There's a Regular Method (that's complicated) to do this, and a Simplified Method. I will only speak to the Simplified Method. To learn more, go to IRS.gov, or ask your accountant.

A. Decide if you meet the requirements: the space is ONLY used for business, and it is your principle work space.
B. Measure the Square Footage.
C. Multiply Square Footage by $5=_____________
D. If using Paper Forms, claim this expense on the Schedule C on Line 30. (It is in a separate place than other expenses.) Also, consider researching or asking someone about Schedule A. I have yet to learn about this.
E. If using software or working with a tax pro, input when prompted.

♥ If this is your first year..........hang in there........and just try your best! If you find out in the future that you did something wrong, or forgot some major deductions, don't worry, you can amend tax returns from previous years.

Actually, that goes for everybody. Just try your best. Take things one step at a time. Do what you can. Reach out for help: from a friend or colleague, email me, meet with a tax volunteer at the library, or your bookkeeper or accountant.

To read about options for Filing, click here.

For the next Tax Help Pop-up Shop, click here.

: ) Jenny Girl Friday

P.S. Know any other self-employed Seattleites who could use this information? Please forward freely!
P.S.2 Are you already signed up for Sidekick Services? If not, click here and join the list to receive tax + license reminders, how-tos, inspiration and more delivered to your inbox.

• How-To Prep for IRS Taxes (Includes fun + rewards!)

March 21, 2018

Prepping for taxes is a lot like planning a big party or fancy dinner. (Okay, maybe a little bit different.)

It's possible to do it all at once.........or to break it up over time. There are pros and cons to each!

Doing it all at once

....is more efficient, you get really in the zone, and sometimes adrenaline fuels quicker working. If this sounds good to you, click here.

Breaking up over time

....means the effort is less intense, you have time to catch important details, you can rest in between.

Either way, it's helpful to know early how you're going to file, so that you can line up any help, or make appointments. (For example, if you're planning to go to H&R Block, you'll need to find their open hours. If you're hoping to work with an accountant, they'll have their own deadlines for you, earlier than April 17th!) Click here to read more about options for filing.

Overview

I've broken up the process into several steps, which can be spread over days/weeks, or done all at once. More details about each step below. Please keep in mind: as a project manager client once explained to me.......when you break things into many steps, each step looks easier, but then, you have a lot of steps! Don't let this discourage you. Just find a way to start, and, in theory, each step should feel easy and quick, and you'll build momentum.

0. Review REWARDS Menu (optional + recommended)
1. WARM UP
2. COLLECT stuff (coming next)
3. CALCULATE some numbers - Basic + Next Level
4. CHECK + find any missing pieces
5. FILE / SUBMIT along with your IRS taxes - File-paper, File-online, File-tax pro
6. STORE tax forms and back up document
7. Optional: Reward + Reflect

It can look like a lot! And feel like a pain! It can also be very rewarding, and I'm determined to help you build in some fun.

Warming Up

Warming up ... okay, so you don't have to, but it will make things more pleasant.

It's like stretching before playing soccer, or better yet, like a cocktail + appetizer before dinner!

As part of our Tax Prep, Warming Up includes picking a due date, your option for filing, considering your way of working, putting time on the calendar, and most importantly...........finding ways to make it fun and picking rewards!

Click on the image to get a downloadable PDF.

You might notice that I often refer to inviting a friend to join you for some of this work. I'm not kidding about this! If you make an appointment with a friend, you're more likely to do the work (not put it off), it's way more more fun, it can go faster, and they can help you figure out anything confusing. Most often, friends are happy to lend a hand in exchange for dinner, a bottle of wine, a candle, or just some sincere thanks.

Do you have someone who could keep you company with this?

Collect Stuff

AKA.....Treasure Hunt Time!!!!!!

I love this step. Can you tell? Here's why. Every receipt you find for business expenses is like finding $$$$$! Depending on your specific tax scenario...for each receipt, you'll be saving 20 - 30% of what that receipt is worth.

For example, if you bought a few books for your business, and the cost totaled $80...then you'll pay $16 - $24 less in taxes.

With this step, we're just collecting stuff. No adding, no smoothing receipts, just find it.

ProTip: create a spot somewhere to put all these things, or perhaps a very pretty basket, or decorated office box.

Heads up: it's very helpful to print a lot of records, so you may have to stock up on some ink. (I like to use remanufactured ink to save money.)

Click on the image to get a downloadable PDF.

Calculate

So.........you don't pay too much!

>>> If you know what to do, or would like to just figure it out as you go, print the Calculate-Basic sheet and start filling in numbers.

Why we're doing this

Before we talk about the numbers we need, let's review why we have to do all this work. Basically, it's so that you don't pay too many taxes! The IRS taxes you on your Income. When you are a sole proprietor or single-member LLC, the profit from your business is considered your income.

If you were to only report your total payments (gross sales), you'd have to pay taxes on that entire amount...even though you likely had to spend money on running the business. That wouldn't be fair. Thank goodness, we don't have to do that! Instead, we report our profit, and we're taxed on that. In order to report our profit....we required to report several numbers, as a sort of proof. Here's more on that....

The Basic Numbers + Formula

To find our profit, we report the following numbers + formula:

Gross Sales
- Expenses
= Profit

Two of those numbers (gross sales and expenses) are made up from several other numbers, and have to be reported in the right way. The IRS created the form Schedule C for sole proprietors and single-member LLCs. The worksheets I created are simplified versions of the Schedule C.

Gross Sales, may include:

- totals from 1099-MISC, given to you
- totals from 1099-K, given to you
- totals from all other payments, including barter

Expenses, may nclude:

- totals by category of business expenses
- total business miles
- square footage of home office

The Calculate Step

In this step, the idea is to find these numbers. It's possible you have them already if you've been keeping records, or using a program such as QuickBooks.

[Even if you have these totals, it's great that you've collected your receipts and bank statements, because these are part of the evidence that you need to keep for several years—7, I think?—in case you get audited. (Btw, good news, less than 1% of people get audited.)]

If you still need to calculate your totals, and would like some guidance, click here to read more about this. There are several ways to do this! Just a few include: pen and paper, spreadsheets, and software. Find what works best for you, and consider getting a friend to help.

Check

Congrats! You've finished the CALCULATE step, often the longest one. By any chance, did you discover that you were missing some things? Or did you have new questions as a result of your work?

That's super normal! That's what the Check + Find is about: finding missing things, getting answers, and double-checking your math. This step is optional. It's offered for those of you who like to be very thorough before filing.

This checklist prompts you to check the math you've done so far (income subtotals, expense totals, mileage).
+
There's space to list questions and things to find. Use it to keep track of your progress.

**For use when Filing with Paper Forms**

File!

It's finally here, the big moment.

Well, actually, with all your amazing prep work, this part is likely to go rather quickly. :)

There are slightly different actions to take, depending on which way you're filing. The worksheets to the left work for:

• Filing with Paper Forms

• Filing Online - TurboTax, H&R Block, TaxAct, etc.

• Working with a Tax Pro - Accountant, CPA, preparer, volunteer

Each checklist covers the basics that are related to Self-Employment—Schedule C, SE, and a few lines on the 1040. The checklists do NOT include steps to complete the entire 1040 form.

It's possible that you might have a few additional details to add, or issues to explore. Hopefully, getting the basics all done will make it easier to figure out the rest.

(Please note: Technically, these are not guides, they are reminders in a logical order. This blog is for tax education, and doesn't constitute tax advice.)

♥ They might look long, but don't worry too much! They only look long because I wrote out each little step separately.

♥ Remember to get a friend to keep you company, and/or make the job fun with things like favorite music, treats, a show in the background.

♥ Also, when you're finished with this step, be sure to give yourself the reward you identified! It's common to be too tired and relived to care, and to skip the reward. Please don't! You deserve it.

Store

Phew! You're almost done. There's just one last crucial step - to Store everything away. You might be thinking, I'm over this! I'm done! I get it, that's super reasonable....and I promise, this last step is worth it and feels really, really good.

It's your choice: you can shove papers in an envelope or file willy nilly. Or, put things in place...neatly, and methodically. Either way, you'll feel so much satisfaction, relief, and closure.

And, if ever in the future, you do need these documents, you'll be SO glad that you did this.

As usual, I invite you to add a reward for this step, even though it's not on the checklist!

Optional: Reward + Reflect

Well done! You just finished a big job. It's essential that you reward yourself. (This is part of staying in the game of self-employment.)

Hopefully, you already did this. If not, now's your second chance.

Also, right now, fresh off the job, is the BEST time to make a change or two, to make life easier next tax season, and throughout the year. Do your future self a big favor by taking just 5 - 10 minutes to reflect!

Yay! Now we're really done. :)

You got this!

♥
Jenny Girl Friday

• IRS Taxes - Different Options for Filing, from Paper to CPAs and in between

March 8, 2018

Please note: this is an evolving blog post.

I'm hoping to do continued research on this topic! (Perhaps with your help.) What you see below is what I know currently, I'll continue to revise and refine this post over time. If you have any information, feedback, input, or questions, please get in touch! Email me at: jennygirlfriday@gmail.com.

There are several great options for filing your IRS Taxes. This year, they are due on Monday, April 15th.

When you're self-employed, there are just two additional forms that get added to your normal taxes. The Schedule C and the Schedule SE. They're not too complicated. (Schedule SE looks a bit crazy, but really, there's only a few lines that you need to do!)

If you're filing with software, online, or with an accountant, usually, they will ask you a lot of questions, and then put your info into the forms. (Coming soon....Click here to read more about the forms, and what information you'll need for each.)

Filing Options

Here's a list, from the most basic to the most formal. More details about each below.

♥ Paper Tax Forms
♥ Free Online Portals
♥ Online Portals / Software (For Purchase)
♥ Tax Preparers / Bookkeepers
♥ Accountants / CPAs

♥Paper Tax Forms

Prefer the Old Skool Way? Paper tax forms still work just great….though the new 1040 is a little more tricky. The IRS took 2 sheets……and turned them into 7 half sheets. Weird, right? Oh well, knowing you, you’ll figure these out like a pro since you’re used to figuring it out. A post coming soon showing the new 1040…In addition to those, you’ll also need to fill out the the Schedule C and Schedule SE. You can download these directly from the IRS.gov site, or find at many libraries.

Variations

• Do on your own, using the instructions
• Get a friend for moral support and a 2nd set of eyes
• Use the Walkthroughs on the Business Apothecary, by Yours Truly (coming soon)
• Get free assistance at a Library, sponsored by the AARP
• Sign up for a Tax Pop-up Shop

Pros: You can see all your numbers. It's easy to double-check the information. It feels very satisfying and transparent.
Caution: Paper forms don't prompt you...so you might miss out on certain deductions, or credits. Such as the state sales tax deduction. (I have to look into that one still!)

♥Free Online Portals

I believe there are a handful of free portals to use. Usually, these work for basic tax situations only. Some can handle self-employment taxes.

One option is the IRS Free File.
Another is H&R Block, at hrblock.com
(Know any more good ones? Please send my way!)

Variations

• Do on your own, using the instructions
• Get a friend for moral support, and a 2nd set of eyes
• Use the Walkthroughs on the Business Apothecary, by Yours Truly (coming soon) to help you prepare your numbers ahead of time.
• Sign up for a Tax Pop-up Shop to get assistance with the self-employment section

Pros: It's free! It'll know about current tax credits, deductions, etc. It will prompt you for all the information.
Caution: It can be hard to get support when you run into trouble. The graphics aren't as easy or pleasing to the eye. Sometimes, there are limits...such as you have to earn under a certain amount.

♥(For Purchase) Online Portals / Software ... like TurboTax

Have you already been doing your taxes online with TurboTax or something similar? Then adding your self-employment taxes is pretty easy! The portal will guide you through a series of questions about your business, then it will do some of the math for you, and put all of your information into the proper tax forms (that get submitted electronically).

The golden standard is: TurboTax. A major benefit is....they are the same company that created QuickBooks. So, if you've been using those, it can be really quick to upload all your data right into TurboTax!

(Know any more good ones? Please send my way!)

Variations

• Do on your own, using the instructions
• Get a friend for moral support, and a 2nd set of eyes
• Use the Walkthroughs on the Business Apothecary, by Yours Truly (coming soon) to help you prepare your numbers ahead of time
• Sign up for a Tax Pop-up Shop to get assistance with the self-employment section

Pros: It'll know about current tax credits, deductions, etc. It will prompt you for all the information. It's easy to use. Excellent help available.
Caution: Sometimes one can get lost in the process. The portals guide you through, but it's sometimes hard to go back to change things. There are often a lot of up-sells, and it's hard to know when you really need them or not.

♥Tax Preparer / Bookkeeper

Do you feel better working with someone? Is your situation fairly straightforward? Working with a tax preparer or bookkeeper can be a great option! These are folks who are trained in, and very experienced with, doing basic taxes. They are different than CPAs (Certified Public Accountants), and usually cost less. Want to know more about the difference? Click here to read more on clearskybookkeeping.com.

Options:

H&R Block offers in-office assistance with using their portal, for a fee

(Know any more good ones? Please send my way!)

Variations

• Go into an office
• Hire a consultant to come to your office
• Sign up for a Tax Pop-up Shop for preparation of very basic taxes, including self-employment

Pros: Working with a real person to lead you through the process. Get answers to questions. Preparers will prompt you for all the information. They know all the things to check for at the end. Gives you a natural deadline for your preparation part.
Caution: Different personalities (sometimes folks are not friendly), tax preparers/bookkeepers may or may not know some of the very detailed laws that apply to your situation.

♥Accountants / CPAs (Certified Public Accountant)

This is the Cadillac approach! Accountants have a degree in their field, extensive training and experience with taxes, as well as a broader view of money in our lives, financial reports, investments, retirement, etc. They're who you need if you want to do any number modeling, get advice with decisions, do long-term planning, and more.

Some accountants are also CPAs. CPAs have to answer some additional and very high standards! They must have a professional license, follow a code of conduct, and get continuing education. CPAs are a great choice if you: have a complex situation (own properties, stocks, divorce, etc.), if it feels reassuring for you to the highest level of training for doing taxes, plan to grow into an S-Corp or change to a non-profit.

They will usually provide you with a questionnaire each year during tax season and a due date.

Options:

Many CPAs are moving to a subscription model, where you pay a monthly fee each month...and you get your annual taxes prepared + support year round. Some provide a quarterly check-in/tune-up plus annual filing. Personally, I think this is a great move!

Two CPAs with subscription models (that I've just learned about!) are:
• Timber Tax, with Luke Frye and Anne Chan at timbertax.co
• Hipster Money, with Alexandra Perwin at hipstermoney.com. (Website is still being developed.)
• Penny Smart Girl, with Meka West at pennysmartgirl.com

Some Accountants/CPAs are willing to do your once-a-year annual filing, and charge one fee for that job.

• Ballard Bean Counters, with Rose Westwood at ballardbeancounters.com

(Know any more good ones? Please send my way!)

Variations

• Go into an office
• Work over the phone and online
• Hire a CPA who also handles your bookkeeping

Pros: Working with a real person to lead you through the process. Get answers to questions. They can give advice. They can often save you money by knowing all of the credits and special rules! Gives you a natural deadline for your preparation part. You can reach out for help via email or the phone.
Caution: Different personalities (sometimes folks are not friendly). It still takes work on your part to prepare for the Accountant. Sometimes the portals that accountants use can be confusing.

Heads Up ~

However you choose to file your taxes—and with whom—it'll still be up to you to have the numbers and evidence for them. That's where I've got you covered! (Coming soon - Click here for a workbook.)

A couple parting thoughts ~

*****You have the right to be treated well by whoever is helping you with filing your taxes!***** If you ever come across someone who's being severe, unfriendly, or acting like you should know this stuff........then I invite you to move on! Find someone else. You're hiring them to help you! Your job isn't to know this stuff! Your job is to do your work, then find the paperwork + numbers that they ask you to get.

+

It actually is rewarding to do taxes. :) It sounds complicated. It interrupts your schedule. It can be confusing. Also, it is evidence of all the beautiful work that you did last year! Think about all the clients and buyers who benefited from your work! Look at all you accomplished! Every number represents income or expenses that you purchased to do your work. That's pretty cool.

Here's to a rewarding tax prep time!

♥
Jenny Girl Friday

• Rewards Are Important + Rewards Menu

February 26, 2018

It is SO important to give ourselves rewards...and on a regular basis. For chores, celebrations, or just because. (They are essential for tax season.)

Who would run a 5K if we didn't get some swag at the end? Who would keep playing video games without achievements and level-ups? They keep us motivated, feeling satisfied, and happy. They are an important part of self-management.

Strangely, one of the biggest reasons we forget to reward ourselves is that we're often too tired after a big push to decide! The solution? Decide ahead of time what kind of rewards you like to get. It's good habit to assign specific rewards to specific tasks, and, to have a general list, for when you need one on-the-go.

Make up your own, or print the one below. Fill it out, and hang up somewhere visible.

Click on the image to get a downloadable PDF. You can also find this menu along with other helpful tools on the Tools For Download page.

: ) Jenny Girl Friday

P.S. Did this help you? Please share freely with friends. I think self-employed folks are keeping the soul in Seattle. I want to make the chores of business easier, so you all can keep being awesome.

P.S. 2 Are you signed up for Sidekick Services via email? Get reminders and links to how-tos delivered right to your email inbox. :)

• For Retail + Combo Businesses ~ How To Make Your Annual Report To The City Of Seattle (For B&O Taxes)

January 17, 2018

Hello + Note from July 2, 2018: The state has a new portal, which looks a little different. I'm hoping to add screenshots of the new one sometime soon. Meanwhile, this post will still give you a good idea of the process. Thanks for your patience!

Does your work include: retail, retail-service, wholesale, manufacturing, or royalties. Or a combination?

Then this post is for you!

If your business is NON-retail SERVICE only, click here to see a different walkthrough.

Due: April 30
Time Required: 2 - 8 minutes to file
Frustration Factor: If you use the SELF Portal, 3 out of 10. If you use the FileLocal, 6 out of 10.
Cost/Taxes Due: If you earned under $100K (gross sales), then you will not pay any taxes to Seattle. To read about tax rates for over $100K with Seattle, click here.
Type of Tax: B&O (business and occupation)
With: City of Seattle
Use: Seattle SELF Portal (Recommended).........or FileLocal-wa.gov.

If you need help, call the city at: 206.684.8484

Summary

1. Log in to Seattle SELF Portal or FileLocal-wa.gov
2. Find that business categories that apply to you: retail, wholesale, service, printing, manufacturing
3. Fill in total sales for each category
4. Hit next until the end, confirm
5. If you earned over $100K in total gross sales, complete the payment screens

One Note: The state collects sales tax for Seattle. So if you have to submit sales tax, you'll do that through the WA state DOR, Department of Revenue.

Some Screenshots below.

How to Prepare - If You are NEW to This :)

Reporting to Seattle is very similar to reporting to the WA state DOR. I recommend preparing for both at once. Everyone's situation is a little different, so it's hard to give estimates or exact instructions.

Here's what I recommend:

1. Schedule some prep time on your calendar in the next week
2. Schedule a 20 - 40 minute block for tax filing, during the weekday, with a plan to call the city if needed (they will walk you through this). This is includes buffer time.
3. Print out the Ready, Set, File - Seattle!
4. During your prep time, fill out as many numbers as you can on the worksheet
5. On your scheduled day, give it a try. If you have to call the city, be prepared to wait...have something fun to do while on hold.

The directions say to choose the last month of the period you're filing for.

With Annual Reports, choose December of the last year.

It took a few seconds for these drop down menus to work. Choose "Seattle B&O tax form" and your Main branch. (Or whatever you named it.)

Fill in each box relevant to your business.

The total sales in each category, NOT including any sales tax that you collected.

This is a second view of the same screen. Note, this symbol means a (confusing) worksheet is about to pop up.

It includes boxes for Royalties and NON-Retail Services

Some questions. Note: you are NOT an employee. You are the business owner.

Royalty information~ enter in the box circled in Orange.

Non-Retail Services, enter in two places.

1. Line 1 for Worldwide Gross Service Receipts. (Worldwide!!!)

2. Line 7 for Seattle Service Receipts

If you did all your work in Seattle, these should be the same.

Notice, the form will fill in some numbers for you.....

A shot after this screen is filled in. You can only change the numbers in White.

This example shows gross sales + taxes in three categories.

Note, no tax is due............because this person earned under $100K.

Eventually, this screen pops up as a confirmation. Hurray! Success!!!!!

FYI - the first 3 times I tried, I got this error message. I waited a few days, and tried again and it worked! One good thing........FileLocal had kept all my numbers, so I just had to move through all the screens.

Well done! Phew! One thing about reporting to the city is that it forces us to know our total sales number. I find that kind of rewarding, how about you?

One more hoop of tax season is all done. Be sure to give yourself a little or even medium reward! Perhaps some Theo's chocolate, some yummy juice from HeartBeet, or a trip to Ladywell's.

: ) Jenny Girl Friday

P.S. Did this help you? Pretty please share with any friends, or post on Facebook. I think self-employed folks are keeping the soul in Seattle. I want to make the chores of business easier, so you all can keep being awesome.

P.S. 2 Are you signed up for Sidekick Services via email? Get reminders and links to how-tos delivered right to your email inbox. :)

• Retail + Combo Businesses ~ How To Make Your Annual Report To The WA DOR (For Excise Taxes)

January 17, 2018

Hello + Note from January 2019: The state has a new portal, which looks a little different. I'm hoping to add screenshots of the new one sometime soon. Meanwhile, this post will still give you a good idea of the process. Thanks for your patience!

Does your work include: retail, retail-service, wholesale, manufacturing, or royalties. Or a combination?

Then this post is for you!

If your business is NON-retail SERVICE only, click here to see a different walkthrough.

A little warning. Reporting to the state isn't that bad........though, this blog post will perhaps make it look a little confusing. Additionally, the online tax forms will definitely make it look even more confusing!!! That is because there are SO many variables, and one form has to serve all industries.

The best thing to do is collect your numbers, then get help. You can call the state. It's their job to walk you through this. Or, get in touch for a one-time consult with me. Or, get a good friend to read through the instructions with you together. :)

Due - for ANNUAL Filers - April 15
Due - for QUARTERLY Filers - April 30, July 31, October 31, January 31
Time Required: 20 - 60 minutes to file, perhaps up to 2 hours
Frustration Factor: 5 out of 10
Cost/B&O Taxes Due:  If you earned under about $45K (gross sales), then you will not pay any B&O taxes to the state. If your gross sales were over $45K, then it could be a few hundred dollars up to a thousand or more.
Sales Tax Due: Depends on your retail sales total(s) and locations
Type of Tax:  B&O (business and occupation), Sales Tax, Use Tax (not covered in this post)
With: WA State Department of Revenue (DOR), using DOR.WA.gov
Options: Paper on Online. Recommended ~ use the ONLINE form!

More information and screenshots below. If you need help at any time, call the state at: 800.647.7706

Summary of the Task

1. Log in
2. Find the correct boxes for each business category: Retail, Service, Wholesale, Manufacturing, Royalties, etc.
3. Fill in total amounts by category
4. Enter all the cities you sold retail products or services
5. Enter retail sales by time period, from 1/1/17 - 3/31/17, then from 4/1/17 - 12/31/17
6. Click next through several screens
7. Confirm
8. Go through payment screens to submit sales tax + any B&O tax owed

**In some cases, enter "Tax Paid at the Source" as a deduction. (Explained on Prep Sheet, below.)

If you're ready, click here to get started at the DOR.WA.gov. More info and screenshots below.

If you have any trouble, call the DOR at 1.800.647.7706. It's their job to help you file your taxes!

How to Prepare - If You are NEW to This :)

Reporting to WA is very similar to reporting to Seattle, but just a little more complicated. I recommend preparing for both at once. Everyone's situation is a little different, so it's hard to give estimates or exact instructions.

Here's what I recommend:

1. Schedule some prep time on your calendar in the next week
2. Schedule a 30 - 120 minute block for tax filing, during the weekday, with a plan to call the state DOR if needed (they will walk you through this)
3. Print out the Prep sheet below
4. During your prep time, fill out as many numbers as you can on the Prep Sheet
5. On your scheduled day, call the state to help you. Be prepared to wait...have something fun to do while on hold.

Prep Sheet

Click on the image below, to get to a PDF to download.

A Little Info

Washington state collects three kinds of tax. The Department of Revenue handles this.

B & O Tax - Business and Occupation. Every business has to pay this tax, though small businesses get a credit, so you might not owe any! Different industries are taxed on business activities. The percentages vary.

Use Tax - This might apply to you. (Though I don't cover it in the screenshots below.) It's like sales tax for things you buy in other states. For example, if you buy a computer in Portland, you'd be required to pay Use Tax in WA state for it.

Sales Tax - This is a tax that businesses collect and submit, versus a tax one pays. If you're a (NON-Retail) Service provider, you don't have to collect this tax! Click here to read about Services vs. Retail Service. The DOR collects for both the state and the city/cities (referred to as local tax).

IMPORTANT NOTE - ONE

If you do not have an account yet with the DOR (Department of Revenue), you'll need to set one up. A blog post is coming soon to show this. Meanwhile, here's what I can tell you.

You will need your~
• UBI - Unified Business Identifier, the # that WA state assigned to your business
and
• PAC Code - I don't know what this stands for. You can find it on most letters from the DOR, or if they sent you a paper form for Excise Tax.

IMPORTANT NOTE - TWO

By any chance, did the state assign you to make Quarterly reports? Versus Annual reports? This sometimes happens when self-employed folks register an LLC. If you want to change from Quarterly to Annually, you must call the DOR (Department of Revenue) during the month of January. And only in January! The number is 1.800.647.7706. If your annual Gross Sales are under a certain amount, they will make the change for you.

Screenshots ~ Making Your Report to the WA DOR

To get started, click here to go to the DOR.WA.gov.

Follow the circles.

Log In.

Click on File Return.

Scroll down........look out for the categories that apply to you. (And check out some of the others along the way!)

Enter the total Gross Sales in each box, next to the name of the category.

Hit Next.

Now you're on the State Sales & Use Tax

Enter your Gross Sales in the Retail Sales box. (This might be pre-filled out for you because of the previous screen. This is collected for the state. The screen shows the rate of 6.5%.

If you know that you owe Use Tax, put that amount as well. (This is for items you bought out of state. If you have questions, call the DOR.)

This next page is for the Local Sales tax. This money is collected on behalf of the city/cities where you sold products and retail services.

> You'll need to add each city.
> For some, you'll need to give subtotals of gross sales in two different time periods.

(Because the tax went up midway through the year.) It shows the different rates to the right.

If you know you'll owe Use Tax, add Seattle, then add your amounts. (Sorry, I'm not going into detail here. This doesn't apply to most people.)

Click NEXT through the following screens until you get to the confirmation page.

>> One exception, if you need to take TAX PAID at the SOURCE, it may be on one of these pages. Sorry, I don't know where it is......

Finally, here we are. It'll show your B&O tax, sales tax, local tax, use tax, etc.

Also, any credits applied to you.

Fill out your contact info to file.

If you owe any money, it'll direct you to a payment screen.

Payment screen. The first one deducts directly from your bank account.

After you fill out your payment info, be sure you follow all the directions to Submit payment.

Check for the buttons at the bottom of each screen. (Sorry, I forgot to grab those screenshots for you.)

Woohoo! Confirmation screen. If you paid any B&O tax, be sure to put a copy in your receipts file.

You can deduct these taxes when you do your Federal filing with the IRS. (Sales and Use Tax is NOT deductible for IRS taxes.)

If you select "View Printable Return" this is what it looks like.

Well done! This will be way easier next year, now that you've been through it.

Please take a little moment to reward yourself. Perhaps some nice chocolate, a walk outside, a glass of wine, or order dinner in tonight.

Cheers!
Jenny Girl Friday

♥

P.S. Did this help? I hope so! Pretty please share with any friends, or post on Facebook. I think self-employed folks are keeping the soul in Seattle. I want to make the chores of business easier, so you can all keep being awesome and shining your light.

P.S. 2 Are you signed up for Sidekick Services via email? Get reminders and links to how-tos delivered right to your email inbox. :)

• How to Fill Out + Send 1099-MISC forms

January 10, 2018

If you paid any Independent Contractors more than $600 in one year, for service work, you need to submit a 1099-MISC form (1099 for short).....both to the Recipient and to the IRS. To read more, click here.

Time Required: 5 - 10 minutes per form (+more time if you have to collect W-9s)
Cost: About $1.50 in postage to IRS + any postage costs to mail to recipients
Due: January 31st
Frustration: 3 out of 10
Tedium Factor: 10 out of 10

Summary

On a half sheet form, you fill in a few boxes. Your name, address, phone number, and tax ID number. Your recipients name, address, tax ID number. The amount you paid them.

You send a copy to the recipient, to the IRS, and you keep one for yourself.

In addition, you must work with two more forms. A 1096 acts as a cover sheet when mailing 1099-MISCs to the IRS. Use W-9s to collect information from recipients. More below....

Photos with notes below. First some information.

You can choose to use paper forms or to file electronically.

Paper forms are carbon and MUST be ordered from the IRS or another source. They canNOT be printed. To ORDER forms, click here. To see a walkthrough of ordering forms, click here.

I haven't worked with e-filing yet. Some tax software systems provide this, such as TurboTax. The IRS also gives this tip, "To locate an IRS business partner who may be able to offer low-cost or even free filing of certain forms, enter "e-file for business partners" in the search box on IRS.gov."

Some accountants will also do this for you.

What you need~

For each recipient:
• Full legal name (of the person)
• Legal name of the business
• Address
• Tax ID Number ~ Either their SSN (social security number) or EIN (employer ID number)
• Amount you paid them ~ called "Nonemployee compensation"

If filing with paper forms:
• 1096 Form
• Large Envelope
• Postage
• Black ball point pen

Use this prep sheet to keep things straight! Click on it to get a PDF. :) This will also help when it's time to file your IRS taxes later this Spring.

Heads Up! There are two more forms to know about! 1096 and W-9

Like the Charlie's Angels, there are actually 3 forms that you'll be working with! They always go together.

W-9 The IRS created a W-9 form to collect the required information from recipients, including their tax ID. It's a one page form with lots of pages attached. As you can imagine, tax ID numbers are sensitive information, and W-9 forms must be stored securely. You can collect W-9s on paper, or electronically. Click here to download from the IRS.gov site.

1096 This is like a cover letter. When you submit certain types of forms to the IRS, they want a 1096 as well. It's basically a summary of everything you're sending in.

Important Things to Know When Filling Out Paper Forms!

1. Use a BLACK ball point pen, press hard!
2. Use legible, block printing
3. Do NOT add any symbols. NO dollar signs, NO apostrophes, NO number signs.
For Susie's Flowers, you'd write: Susies Flowers
For an apartment #302, write APT 302
4. Do NOT cut the 1099 form top sheet (the one you send to the IRS)
5. Write the dollars + cents for all amounts. For example, 1235.00 is correct. (1235 is NOT correct.)

> > If you happen to make any mistakes, check the VOID box at the top of the form, and start again.

Mailing Information

• Address for Washington Residents:

Department of the Treasury
Internal Revenue Service
Kansas City, MO 64999

• You must use a FLAT envelope, with no folds.

• It must be postmarked on or before January 31, 2018.

1099-MISCs Forms

Two separate forms are on each page. This shows the top sheet which is sent to the IRS. Do NOT cut this page. The pages underneath are torn in half before giving to the recipients.

Notice the names. It's important to write both the recipients full legal name AND the business's legal name.

Whenever a business is a Sole Proprietor or Single Member LLC, you may use either the SSN (social security number) OR an EIN (employer identification number).

This example shows the Payer having an EIN.
The recipient using their SSN.

On the bottom form, I made a mistake! I used a # sign. This is not allowed, so I stopped filling it out and marked the VOID box.

After they are filled out, tear the strip off and separate the forms.

Look for THREE to keep, and do the following:

1. For the IRS - send in the mail, in a flat envelope
2. For Recipient - send in the mail, may be folded
3. For Payer - keep in your tax records

Here's a look at the 1096 Form.

Moving from left to right with notes:

1. Be sure to check the box 1099-MISC.
2. Use your EIN ....OR.....your SSN. (Not both)
3. Number of forms. Put the number of filled out 1099-MISCs. There are two per page. If you filled out for 3 recipients, you'd write "3".
4. "Total amount reported with this Form" Add up the total of all dollar amounts on all forms. If I was reporting $2100 for a coach and $1400 for a designer, I would record $3500 in this box.

Finishing up!

To the IRS - one 1096 form plus the top copies of all 1099-MISCs
To the recipients - their 1099-MISC copy
For your records - full page copies

Well done! Bravo! Even though the contents of this are straightforward, it can feel so taxing because it takes a lot of care and attention, yet it is boring. In addition, just the thought of the IRS can be triggering or get the adrenaline going. ♥ If you can, find a time to relax a bit. Perhaps a bath, a trip to Ladywell's, a long walk, even a short walk around the block.

Also, remember to check off of your Cheat Sheet / Sticker Chart!

Cheers!

: ) Jenny Girl Friday

P.S. Sign up for Sidekick Services to get these delivered right to your inbox! (Posting on social media is random....)

• Estimated Quarterly Payments to the IRS - What are they? Do I have to send them? How do I calculate payments?

January 8, 2018

What are estimated quarterly tax payments to the IRS? Why do I have to send them?

Our federal taxes are a "pay-as-you-go" system. When you're an employee, federal taxes are taken out of each check. If you are self-employed, the IRS requires that you send in tax payments throughout the year. For the smallest business, this is required 4 times. (Larger businesses may have to end in more often.)

I just had to make a report to Washington State and send in Sales Tax. Is this the same thing?

Great question and No. Every level of government wants to tax you...and it's easy and reasonable to get them confused.

Washington State - collects Sales Tax, B&O tax, and Use Tax. Some businesses report annually, some report quarterly.

The Federal Government (IRS) - collects Income and Self-Employment Tax. We file an annual report, but we're asked to send in estimated tax payments throughout the year.

This post is about tax payments to the IRS.

Do I have to send in the estimated quarterly payments (EQ$) to the IRS? What happens if I don't?

Technically speaking, YES—the letter of the law is that if a person is doing business, they must send payments in each quarter. In some cases, if you don't send in your EQ$, you'll have to pay a penalty.

The reality: I've met many self-employed folks who did not send in their EQ$ the first year, and they had no penalties, or the penalties were very low. Having said that, the IRS may choose to more vigorously enforce this rule at any time.

In some cases, if your income is low enough, it is allowable to NOT send in payments. To see if this applies to you, click here to read more (scroll down to page 24), or call the IRS at 800.829.4933

How do I calculate payments?

If you filed business taxes last year, usually your tax preparation software or accountant will provide you with a recommended amount for you to pay. It'll be based off of your earnings for the previous year.

If you are a brand new business, you'll need to calculate an amount to pay. There's a formula and worksheet below.

An important note: it's common for new businesses to grow quite a bit from year to year! Because of this, the estimate made for the quarterly payment can be too low. ProTip: Always transfer 30% of all business deposits into a savings account for taxes you may owe. (40% if you collect sales tax.) If what you're saving is more than what your EQ$ require, you can either....send in extra money for each EQ$. OR, hold the money in your account until you file your federal taxes.

Simplified Formula for Calculating EQ$ + Worksheet

Click on the worksheet for a PDF version for download.

1. Estimate your Gross Sales - all the money you'll collect from buyers/clients. (Never include Sales tax in the amount.)
Example: $12,000

2. Estimate your costs of doing business.
Example: $3000

3. Subtract the costs of business from your Gross Sales.
Example: $12,000 - $3000

4. The answer is your Profit or Income.
Example: $9000

5. Estimate your tax owed. Multiply your profit by .30.
Example: $9000 x .3 = $2700

6. Divide tax owed by 4. This is the amount to use for your EQ$
Example: $2700 / 4 =$675

When are they due? How do I send them in?

They are due on the following dates each year. If a date falls on a weekend or holiday, the deadline is extended to the next business day.

January 15
April 15
June 15
September 15

You may submit payments electronically or through snail mail. Click here to read more on How To Submit EQ$.

ProTips + Doing Yourself a Favor

ProTip: Each year after you file taxes, print off all your Payment Vouchers. Find four envelopes and put stamps on them. Put these vouchers + envelopes in a visible place, for example, pin to a bulletin board, set on your bookshelf, or clip to your fridge.

ProTip: Add these dates to your calendar right now: Jan 1, Apr 1, Jun 1, Sep 1. Prep and send your payments on these days.

Do yourself a favor and send these payments in! If you skip these payments, it can be very tempting to spend the money from your account......leaving you high and dry next April! In addition to making your future brighter, it can feel very satisfying to mail the checks, and gives peace of mind right now.

Happy Working,

Jenny Girl Friday

Read more on the official FORM 1040-ES info sheet on the IRS.gov site.

• How to Send in Your Estimated Quarterly Tax Payment (EQ$) to the IRS

January 8, 2018

Most of us are required to send in part of our federal taxes each quarter to the IRS. These are referred to as estimated quarterly tax payments (EQ$).

There are two main things you need to know to send in your EQ$.

• How much money to send.
• How to submit payments.

This post covers how to submit the payments. Click here to read more about EQ$ and how to calculate the amount.

The Due Dates for EQ$

To download original calendar, click here. Thank you to scrappystickyinkymess.wordpress.com.

January 15
April 15
June 15
September 15

Note: These are NOT due every three months. The time in between varies.
Also, if the due date falls on a weekend or holiday, it is shifted to the nearest business day.

Payment Options

> You may pay electronically. Click here to go to the Payment Page on the IRS.gov site. In most cases, there is an additional fee. There are several options: credit card, direct pay from your bank account, wiring, and more.

> Or, send checks through snail mail.

What You Need for Mailing in Checks

1. A Payment Voucher, also called, Form 1040-ES
2. Envelope
3. Check
4. Your SSN (social security number)

How to Get a Payment Voucher

If this is your first year doing business:

• Download from the IRS.gov site.
Click here to go to the Form 1040-ES page. Scroll to the bottom to get the vouchers.

If you've been in business for 1+ years:

• Tax Software programs will often generate these for you after you file your taxes.
• Accountants will often provide them
• IRS - sometimes they will send these to you in the mail
• IRS.gov - download from the website, scroll to the bottom to get the vouchers.

Steps to Take if You are Submitting Electronically

1. Calculate the amount to send in
2. Go to the IRS.gov payment site
3. Follow instructions to make payment
4. Print any receipts and file with all of your business documents

IMPORTANT - Be sure to select “PERSONAL Taxes” when asked. DO NOT select “business taxes.” This will send you to a confusing portal. “Business Taxes” are for places like Mighty-O, Starbucks, etc. You are paying “PERSONAL” taxes that you earned through your sole prop / LLC business.

gFIRSPaymentPersonalBusinessEQ$Arrow.jpeg

Steps to Take if You are Submitting through Snail Mail

1. Calculate the amount to send in

2. Fill out the Form 1040-ES (payment voucher)

3. Write the check

4. Write on the Memo line of your check:
- your SSN
- "Form 1040-ES" and the year you're submitting tax for (See note below.)

5. Put in an envelope. Address to:
Internal Revenue Service
P.O. Box 510000
San Francisco, CA 94151-5100

6. Be sure it is postmarked by the Due Date.

7. Make a copy of your check OR make a note of the check# and amount paid. Put in your file of business documents.

What Year to Write on Your Check

Look at your payment voucher to know what year to write on your check. Generally, the estimated quarterly payment we're sending in is for the previous quarter. So....

Parting Thought

Do whatever you can! Sending any amount...at any time, is way better than skipping this step.

You can help yourself by marking these dates on your calendar: Jan 1, Apr 1, Jun 1, Sep 1....and taking 15 minutes to send these payments. If you're not sure how much, get a friend to help or just take a guess. You'll thank yourself next April, and can have more peace of mind in the meantime.

Happy Working,

Jenny Girl Friday

• Renew Your Seattle (City) Business License - December 31st

December 3, 2017

Your first TAX season hoop is here! Renew your Seattle business license by December 31st. Cost is $55 if you earn under $20K, or $110 if over $20K (plus fees if you renew online).

What does the County tax us on? How much are the taxes?

Do I have to report to King County?

What counts as "personal property"?

How do I register with the county?

What happens after I register?

How do I make a report to King County?

Jar

Top Ten List

Two-DO List

Roll some Dice

Current Master List - A work in progress.

This is a sketch of a post to come. It is not complete.

Setting up your Retreat

Retreat Format

1

What’s working / not working?

2

Past / Present / Future

3

Relax / Play / Inspiration

Who Are Your Ideal Clients?

For Individuals:

For Orgainzations / Companies

Now, look at your three clients. Let’s make some observations.

Overview of the process

1

Warm Up / Prep your space

2

Collect everything you can find

3a.

Find your Gross Sales

Important Note! If you received 1099-MISCs for some of your income, you will need to have all of those available. Know the subtotal for all 1099-MISC income. AND, know the total for all other payments.

3b.

Make an Income Record

3c.

Expenses by category

Important Note - It doesn’t matter how you add them up! As long as you have subtotals for each category. And evidence for each expense.

3d.

Special case expenses - mileage and office

Mileage

Office

3e.

Payments You Already Sent In

4

Check the worksheet

5

Plan when to file

6a

Store everything

6b

Reward yourself!

In this episode ~ We talk about feelings, stories about money, stories about ourselves, self-compassion and some strategies.

Working with Heidi

What I love about this episode

Offer

Ask

Sole Proprietor

LLC

Concerning the IRS – Good news!

Work with your nature.

This is one of my favorite guiding principles. And it's more important than ever when it comes to chores or anything that feels tedious, new, overwhelming. What style fits you? ....when it comes to working on IRS tax prep?(Nicknames are works in progress.)

Phoenix

Early Bird

Marathoner

Work-Party Girl

Four Leaf Clover

If you have an LLC or PLLC, you must ‘renew’ it each year to keep it going. Officially, it’s referred to as making your Annual Report. It’s quick and costs about $60. It’s due on the anniversary month of when you opened it.

Some reminders

Basic Info to Renew / Make Annual Report

Summary

Why?

Steps - Screen shots below

Screenshots

♥ ♥ ♥ ♥ ♥

P.S. Was this helpful? I sure hope so! If YES, please consider leaving a Tip in the Tip Jar. (Unless you’ve already given an Annual Donation.)

Have any friends with an LLC / PLLC? Forward freely!

If NO, then send me your questions, or let me know where things are confusing. I’d love to clear it up for you and other folks! jennygirlfriday@gmail.com

♥ ♥ ♥ ♥ ♥ ♥ ♥ ♥

Read on to find out:

♥ how to get your FREE 1,2,Go Chapters♥ more resources (including my go-to CPAs,)♥ and to hear a little more to the story………. :)

In this episode ~
We talk about feelings, stories about money, stories about ourselves, self-compassion and some strategies.

This is one of my favorite guiding principles. And it's more important than ever when it comes to chores or anything that feels tedious, new, overwhelming.

What style fits you? ....when it comes to working on IRS tax prep?
(Nicknames are works in progress.)

♥ how to get your FREE 1,2,Go Chapters
♥ more resources (including my go-to CPAs,)
♥ and to hear a little more to the story………. :)

1 Find the payment amounts
2 Make a Record
3 Find the Total
4 Format for the IRS

♥ Paper Tax Forms
♥ Free Online Portals
♥ Online Portals / Software (For Purchase)
♥ Tax Preparers / Bookkeepers
♥ Accountants / CPAs