Magazine for the professional nail industry.
Issue link: http://nailsmag.epubxp.com/i/97567
{on your mind} time in the salon, paying rent and buying my own supplies. I have tried to do some research but can't figure out a percentage that I should be putting aside for taxes. I live in Colorado (if that matters). I have been setting aside 20% so far since I worked another full-time job in the beginning of this year. I'm not worried about owing this year. But I want to know what percentage I need to be saving from now on? Michelle Shoemaker Nails by Michelle Arvada, Colo. Editor's Note: We asked Larry Kopsa CPA, of Kopsa Otte CPAs & Advisors in York, Neb., to answer your question. Here's what he said: "Without knowing the nail tech's tax situation as a whole, it is almost impossible to answer this question. There are so many variables involved including: income, deductions, number of dependents, withholdings from another job, just to say the least. Just know that the taxpayer will have to pay income tax on all their taxable income (Adjusted Gross Income Exemptions - Standard Deduction or Itemized Deductions = Taxable Income). Depending on what that amount is the taxpayer can start anywhere from 15% federal tax up to 35% federal tax, plus the applicable state tax. Also, the taxable income earned from the booth rental will also have an additional 13.3% self-employment tax. For 2013, this will increase to 15.3%. For example, in 2012 a single taxpayer in Colorado who makes $40,000 net income from booth rental with no other source of income and takes the standard deduction would have a total tax of $9,862 of federal and state tax or right under 25% of total income. It is highly recommended that the taxpayer speak with their tax advisor prior to the end of the year and have some pretax planning done. This way, all the taxpayer's income and deductions can be projected out to see what tax bracket the client is in as well as estimate the tax liability so there are no surprises on April 15." W Where in the world is NAILS Magazine? WEB POLL What's the primary scent of your most popular pedicure? Fruit (orange, apple, cherry, etc.) 23.1% Dessert (chocolate, sugar, cookies, etc.) 15.4% Peaceful (lavender, chamomile, sandalwood, etc.) 46.2% R Recently married, my h husband and I had our h honeymoon in Orange B Beach, Ala., last March. We enjoyed the beautiful beaches so much, we made a return visit in September. This time around, I was able to catch up on my NAILS Magazine. What a setting in which to read such a wonderful, educational magazine! Vickie Meador European Body Wraps Olive Branch, Miss. Nutty (almond, hazelnut, walnut, etc.) 10.2% 5.1% Other We asked. You answered. Log on to www. nailsmag.com to answer this month's question and don't forget to check back here to see what other nail techs have to say. Do you have a picture of yourself reading NAILS Magazine? Send a pic to Hannah.Lee@bobit.com and make sure to include your name, salon name, city, state, and a brief synopsis of what's going on in the photo (where you are, what you're there for). Psssst… Send your comments to Hannah.Lee@bobit.com or send us a letter via snail-mail to Hannah Lee, 3520 Challenger St., Torrance, CA 90503. (NAILS Magazine reserves the right to edit letters for space and clarity. Please include your name, address, phone number, and e-mail address.) 44 | NAILS MAGAZINE | JANUARY 2013