Taxes for Freelancers - Part III

Welcome back to the third post in my "Taxes for Freelancers" mini series (be sure to read Part I and Part II, if you missed them!).

Today, I want to share a bit about my process for staying organized and keeping good records throughout the year. This is essential for making sure tax season goes smoothly!

One thing that helps me stay organized is setting aside a few hours each month to work through a list of business to-dos (inspired by this post).

On the first Friday of each month, I spend a few hours organizing my records from the previous month, checking in on my financial goals, and preparing for the month ahead (make invoices, schedule blog posts, etc.).

Here is my monthly checklist:

FINANCIAL

Schedule credit card payment(s)
Buy Roth IRA mutual funds (set monthly amount)
Make loan payment (set monthly amount)
Review bank statements from this month*

*Other monthly investments and savings are automatic

SD and I set financial goals at the beginning of the year with monthly investment amounts. It's rewarding to see our progress month by month! In addition, I feel more productive and organized when I do all of these more administrative tasks at one time (instead of remembering to pay bills at different times each month).

BUSINESS

Create studio invoices for next month
Write and schedule invoice emails (thank you, Boomerang!)
Record income and mileage for this month in studio budget
Deposit checks
File receipts (I sort mine into categories: Business Travel, Meals, Professional Development, and Business Expenses)
Print assignment sheets for lessons next month
Pay estimated taxes (federal, state) [quarterly]

As a teacher, music director, and full-time student, it helps me to step back every few weeks and evaluate my business as a whole, reflect on my teaching, and plan ahead. Setting aside part of a day each month keeps me accountable in those tasks that can easily be overlooked (e.g. filing receipts, tracking mileage, and setting aside estimated tax).

PERSONAL

Plan blog calendar for next month (I love this one from Em for Marvelous!)
Run computer backup
Back up iPhone photos [quarterly]

Some of the things on this list help me stay on track with my monthly goals, as well (bonus!).

The real secret? Organize and keep records as you go.

1. Report your income and expenses in a spreadsheet each month.
2. File your receipts every few weeks.
3. Tally your business travel receipts when you get home from your trip.
4. Keep a separate bank account for estimated tax money.
5. Keep a little notebook in your glove compartment to document mileage.

Have other creative ideas for staying organized and keeping good records throughout the year? Leave a comment below - I'd love to hear!

Previously:
Taxes for Freelancers - Part I
Taxes for Freelancers - Part II

April Goals

*Disclosure: I get commissions for purchases made through links in this post.

Okay, so it doesn't exactly look like this in Upstate New York yet, but I'm holding out hope for you, April! (We may or may not have gotten six inches of snow this weekend, but that's beside the point.)

This month, I'm looking forward to more evening walks with SD, more music-making (currently working on an arrangement of "Falling Slowly" from Once), and more intentional rest.

Maybe you (like me) have had a rough start to year. Maybe your shiny goals from January are losing their luster.

Maybe you're feeling burnt out and uninspired. The good news is that January 1 is only a date on the calendar. You can reset or revise your goals at any time. You can set small action steps any time. You can make choices about how you spend your time. I intend to celebrate this month by living in the moment, cultivating daily gratitude, and making time for the small things in life that mean so much. April is a fresh start, full of promise and potential — let's make the most of it!

April Goals

Plan an adventure with SD
Continue 60 minutes of intentional exercise per week
Write a note of encouragement to a friend*
Continue reading Margin
Send out my new email newsletter (the first edition is going out later today - it's not too late to sign up!)
Plan intentional time off of social media
Commit to no email after dinner
Celebrate Easter with SD (and the Bell Choir!)

*=carryover from last month

Happy Spring, friends!

Graham Johnson Masterclass: What I Learned

Last week, I had the opportunity to attend a masterclass presented by Graham Johnson at Eastman. What a privilege to learn from someone so wise and with so much experience! Eastman students performed eight songs of Schumann and Brahms (one by Schubert). Graham Johnson's perspective on music and performance was inspiring and enlightening.

Here are a few things I took away:

- The original key of a song has a certain color and quality - be wary of alternate keys and transpositions that change the mood and character of a song. - All ritardandi in Schumann's music are "local" or temporary, though often, a return to tempo is not indicated in the score. - The joy of performing is in the challenge, risk, and danger of the musical performance. "Go for the challenge and let it be an enriching experience." - Choose a tempo that leaves room for communicating the text and character of the song. Make it sound as if the thoughts or actions of the character are occurring in the moment, for the first time. - Do not play (or sing) "off the voice." A crooning, whispery sound does not travel expressively - it must be supported. - To the singer: listen to the piano and harmonize with it. - "Cultivate [your] tone." - "All lieder requires time for the notes to be sung, not barked or spoken." - Never allow yourself to go on automatic pilot. "Don't ever find yourself going through the motions. How can that engage your heart?" - Music of the nineteenth century reflects a period that had more time. Consider this when choosing tempi for performance (versus the fast-paced "broadband" culture of the world today). - "We've got to get this sense of communing [between singer and pianist]. . .it's an important part of what we do." - Accompany what is there in the moment, rather than the ideal in your head. - Pianists often sit in the composer's [Schubert] hot seat, playing music he wrote for himself to play. - "What's the message?" What are you trying to convey? - Brahms "treated his songs like a private diary of emotions." - The secret is: more time. - "Intimacy is part of what lieder is about. . . .Less sound, more feeling."

If you ever have the opportunity to attend a masterclass with a world-class musician, I hope you take advantage! It will change the way you think about, hear, and create music.

Lessons from the Slopes

Ashley Danyew | Ski Day

I checked off one of my March goals last week—we went skiing! And can I just say, it felt so good to spend the day outside after a long, very cold winter. Mind you, it was still in the 40s, but with the sun shining, we got a glimpse of the warmer days ahead. I felt more refreshed just breathing in that cool mountain air.

Ashley Danyew | Ski Day

Every time I ski, I discover a few more "life lessons". I hope these are as enlightening to you as they were for me:

1. The conditions are always changing. In this spring weather, you may find groomed snow, slick icy patches, and soft snow that grab your skis—all on the same trail. The conditions are always changing, so be prepared, responsive, and flexible.

2. You can't follow in someone else's tracks; you have to make your own. The trails show traces of those who have traveled this way before but it's impossible to make it down the mountain using the same set of tracks. Make your own decisions, use your own creativity, and make your own way.

Ashley Danyew | Ski Day

3. It's okay to fall. It's how you get back up that matters.

4. Face your fears; take the leap. You may not be able to see the end of the path, but that shouldn't keep you from exploring it. Face your fears; take a risk; try.

Ashley Danyew | Ski Day

5. Sometimes it's good to be still. SD and I had some great conversations on this chair lift—the real, honest kind of conversations that I'd been missing in the midst of a few chaotic months. My heart needed this time to be free, to be brought to a place of humility and honesty, and to find peace.

Ashley Danyew | Ski Day

6. It's better with people. It's true in skiing and it's true in life. Surround yourself with people who lift you up and challenge you to be better.

7. Enjoy the ride. Sure, there's risk involved and it might be a lot of work sometimes, but enjoy the ride. The joy is in the journey.

Read more: Snow Day

Perspectives Publication

Hi friends!

I am thrilled to announce that my article "Developing Creative Concert Experiences for Young Children in a Community Setting" has been published! This was a really big goal of mine last year and I am honored and humbled to see it come to life.

See a sneak peek of my article below:

If you're a member of the Early Childhood Music & Movement Association, you can read the latest issue of Perspectives (Vol. 9, Issue 1) and my full article on their website. Thanks so much to everyone at ECMMA/Perspectives for this opportunity!

March Goals

*Disclosure: I get commissions for purchases made through links in this post.

“Hope is the thing with feathers, that perches in the soul, and sings the tune without the words, and never stops at all.”

— Emily Dickinson

In a number of ways, March is a fresh start for me. Winter is fading and I am reminded again and again of God's faithfulness to us when I think about the promise of Spring. "This I call to mind and therefore, I have hope..." (Lamentations 3:21).

March Goals

Schedule 60 minutes of intentional exercise per week*
Go skiing with SD*
Give an oral defense of my paper (part of my PhD Qualifying Exam)
Write the third "Taxes for Freelancers" post (read Part I and Part II)
Start the Piano Olympics Festival(!) and find ways to document assessment
Write a note of encouragement to a friend
Send a "just because" gift to a friend
Continue reading Margin (I got a head start last month, as you can see!)
Work on Email Newsletter for April (sign up here!)

*carryover from last month

What are your goals for March? I'd love to hear them!

Taxes for Freelancers - Part II

Welcome back! 

As I mentioned in my last post, SD and I are by no means tax experts, but we've learned a thing or two about filing taxes as freelancers that I thought might be worth sharing. 

This series does not replace talking to a professional - if you're brand new to this, I highly recommend that as your first step! - but it's my hope that these resources and suggestions can serve as a broad introduction to doing your own taxes and keeping good records throughout the year.

Taxes are complicated and they can take up a lot of time, if you're doing things yourself. 

Want to know our secret for staying sane? We start the process in January. 

We work on some of the tasks below on our own and then sit down a few times over the course of February/March to go through the software together (by the way, we use H&R Block).

Here are a few things you can do to get a head start on your taxes:

1. Gather year-end statements and tax documents. 

Some of these come in the mail, others are all online.  Take a few minutes to save PDF versions to a folder on your computer and/or gather all hard copy statements into one place.  Here's a starting list:

• State tax refund(s) from last year

• W-2(s)

• 1099(s) (contracting work, interest, dividends/capital gains)

• 1098-t (if you're a student)

• Student loan statements (you can deduct any interest you paid last year)

• Your self-employment income from last year

• IRA/Roth IRA investment totals

• Health insurance premiums (deductible if you're self-employed)

2. Pull receipts and expense records and calculate totals. 

That professional conference you attended last summer?  Deductible.  That lunch you had with someone you mentor (professionally)?  Deductible.  I sort all of my business-related receipts in an accordion folder during the year; in January, I spend some time calculating totals.  Here are a few categories to help get you started:

• Business Travel (air travel, rental car, tolls, hotel, internet charges when traveling)

• Business Meals (usually, you can write off 50% of this total)

• Business-Related Purchases (books, music scores, equipment)

• Business Expenses (website hosting, office supplies, conference registration, dues)

3. Add up miles driven for business. 

Driving to and from a gig?  Keep track of your mileage!  Any time you drive to "work" (a place that doesn't send you a W-2), you can deduct that mileage using the federal mileage rate. 

It's best if you can keep something in your car that will prompt you to write down starting and ending mileage for each trip, but if that doesn't work for you, keep track of the dates and destinations and calculate the mileage later.  Also, figure out the total number of miles you drove last year (they'll ask for this number, too).

4. Make a list of any charitable donations. 

Whether you donate a bag of clothes to Salvation Army or make an annual donation to your Alma Mater, you can report all charitable giving on your taxes.

5. If you paid estimated tax last year, look up these payment amounts (federal and state). 

If you make more than a few hundred dollars a year in your freelance work, it's a good idea to make estimated tax payments (federal and state) each quarter (April 15, June 15, September 15, and January 15), since no one is withholding money from your paycheck.  You can do this online pretty easily. 

A good rule of thumb is to pay 5% of your quarterly earnings to your state and 20% to federal. 

When you file your taxes, they'll ask how much you paid each quarter, so have these amounts ready.  If you underpaid during the year, you have to pay a fine; if you overpaid during the year, you get a refund (yay!).

Hope this little glimpse into our process is helpful!  More ideas, strategies, and helpful hints coming soon in Part III!

Previously:
Taxes for Freelancers - Part I

Winter Newsletter

It's been a busy first month of 2014, but it's already full of so many good things.  I am excited for the year ahead!  If you're on my email list, you'll be getting a fun email from me later today, but in the meantime, here are a few highlights:

I am presenting a session called, "Meet the Community: Presenting Music in Meaningful Ways" at the College Music Society Southern/Mid-Atlantic Joint Regional conference in Knoxville, TN later this week (I know, I know - right in the middle of Winter Storm Pax!). I've already had one flight cancelled and re-booked - hoping that's the extent of the travel adventure! Anyway, Southern friends, let me know if you'll be there!

I will be teaching a similar workshop at Music and Worship Arts Week at Lake Junaluska (NC) in June and am looking forward to doing some accompanying, as well!  Read more about Music and Worship Arts Week here and here.

I am thrilled to announce that my article, "Developing Creative Concert Experiences for Young Children in a Community Setting" is in press with Perspectives, the journal of theEarly Childhood Music and Movement Association!

I know I posted about this last Fall, but for those of you who may have missed it: I was honored to have my writing featured on the Clavier Companion website!  Read my essay, "Exploring Ideas for Effective Teaching" here.

Most of you probably know by now that SD and I started a handbell choir in November.  I'm pleased to say that we've been invited to continue our work with the bells this Spring!  Read more about our Fall adventures here, here, and here.

Wishing you a wonderful winter and a glorious spring!