THE SUNLIGHT TAX BLOG:
Tax and Money Education for Creative People, Freelancers and Solopreneurs
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- General Economy; Tax Policy and Legislation 52
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- Tax Deductions for Freelancers and Self-Employed 9
- the Sunlight Tax Podcast 70
Summer Camp and the Child Tax Credit
As any parent of young kids knows, juggling work and childcare is hard. And paid childcare is impossibly expensive. Many budget-conscious artist parents who manage to fit their work into school time hours – and avoid babysitters and after school care – simply don’t have that option come summer. Here’s some good news. If you pay to send your child to summer camp so that you can go to work, that camp expense qualifies for the Child and Dependent Care Tax Credit. And in March 2021, the Child and Dependent Care Tax Credit was expanded. It now allows bigger dependent-care expenses, a higher percentage of them, and more taxpayers qualify to take the credit.
The Second Best Time is Now
You’re having drinks with a friend after an opening, and the topic turns to money. Life is expensive, the city is expensive, and the distant menace of retirement? Forget it. You turn back to your $14 cocktail and feel depressed.
But wait. Aren’t you the same person who is taking charge of her career? Aren’t you setting new goals, prioritizing your studio time, building your network, learning how to market yourself? You’re smart, and you’re tackling the other hard stuff. So why are you cheating yourself on the bigger picture? You can do this. No need to let the perfect be the enemy of the good here. There is an apt proverb about planting trees: The best time to plant a tree was twenty years ago. The second-best time is now.
Recession is a Golden Opportunity
“Should I be freaking out about the economy?”
You’re getting the message that there's bad stuff happening in the economy right now. Inflation. Gas prices. Groceries. Stocks tumbling. Crypto cratering. But how these things touch your life can vary. You’re self-employed, and so you want to be sure that your business stays strong and you are managing your money well through potential choppy waters.
Do you need to freak out?
Hell no. In fact, you might even celebrate.
If you know what to do, recessions present some of the best opportunities for you to maximize your money and stand out in your business.
You create the culture. So what will you build?
Confession:
Like you, I struggled to wave the flag this weekend. Celebrating our nation's freedom felt heavy in the wake of the Supreme Court's deletion of womxn's right to bodily autonomy (which is tied to our economic autonomy).
And yet, I will still say something very unpopular:
I love this country.
Why? Because I love you.
If you're reading this, you create culture.
The thing about American culture is that there is so much of it that is so awesome. That reflects the best of this country. Our values. Our creativity. Our inclusivity. Our highest aspirations. Our vision for a better world.
What are your money concerns?
Suggest a blog topic for Hannah here.