My Total Business Expenses and Taxes for 2021

TL;DR

Justine shares transparent breakdown of business expenses, taxes paid, and income earned in 2021.

Transcript

in my last income report i mentioned that i was going to share all of my total expenses and how much i paid in taxes for my business in 2021 i finally gathered all of the data and i'm being completely transparent with you on how much i spent on business expenses how much i spent on taxes it was a lot but also stick around towards the end because i'... Read More

Key Insights

• 💳 Subscriptions like ConvertKit and G Suite form a significant portion of Justine's business expenses, highlighting the importance of evaluating subscription costs.
• 😤 Justine's investment in a video editing team showcases the need for outsourcing tasks to focus on core business activities.
• 🤑 Setting aside money for travel and conferences demonstrates Justine's commitment to personal and professional development.
• 🛀 Evaluating and eliminating unnecessary expenses like InVado Element subscription shows Justine's proactive approach to cost-cutting.
• 👨‍💼 Investing in software and equipment enhances business operations and efficiency.
• 🚕 Managing taxes through quarterly payments and a separate tax savings account highlights smart financial planning.
• 🙂 Justine's high federal and state tax payments shed light on the challenges faced by self-employed individuals regarding tax burdens.

Questions & Answers

Q: How did Justine categorize her business expenses for 2021?

Justine categorized her expenses into subscriptions, video editing team, travel, software, and equipment investments, offering insight into where her money was spent.

Q: How does Justine handle her tax payments for her online business?

Justine sets aside 35% of her earnings each quarter for taxes, maintaining a separate tax savings account with Novo to pay quarterly taxes easily.

Q: What were Justine's federal and state tax amounts paid in 2021?

Justine paid $24,095 towards federal taxes and $4,016 towards California state taxes, showcasing the significant tax burden of self-employment.

Q: How did Justine manage to earn $109,919 in business income for 2021 while juggling motherhood?

Justine showcased resilience and dedication by earning a substantial income despite maternity leave, demonstrating the potential for growth in self-employment.

Summary & Key Takeaways

• Justine reveals her total business expenses for 2021, focusing on subscriptions, video editing team, travel, software, and equipment investments.

• She details her tax payment process, quarterly payments, separate tax savings account, and the high federal and state taxes paid.

• Despite juggling motherhood, Justine earned $109,919 in business income for the year, showcasing financial transparency and growth opportunities.