The Basics of Money and Taxes for Cartoonists
Cathy G. Johnson
This page is not a “how to” but more of a “you can do it!”
I will start this topic with a disclaimer: I am not a financial planner. I’m not a tax preparer or an accountant. But as an independent artist, I work for myself, and in the eyes of the IRS, I have my own business. And if you’re an artist, you should too. Taxes are purposely kind of scary in the United States of America, but I want to empower you to learn about them. I want to empower you to learn about your money and taking care of it. Artists work very hard, but because our work is undervalued, many of us think we aren’t capable. But you are! You are very, very capable.
Below, you won’t get any specifics, because I am not qualified to do that. But what I will do here is do everything in my power to encourage you to empower yourself. You are an artist and you can do it.
How do I make money?
My biggest advice is try to earn money in many different ways. I have another blog post, titled Comic Jobs, where I’ve created an ever-updating list of things cartoonists can do to make money. I personally have a very diversified working life; selling artwork, illustrations, commissions, grants, workshops, teaching, publishing, etc etc. All those things get me money in different ways and in different rates, and come together to be a living wage. They also all have an individual ebb and flow. Some seasons workshops are very popular, and some seasons there are a lot of illustration clients. I encourage you to try a lot of different things. See what works and what you like, and if you really enjoy something, throw yourself more into it. If you don’t like something, wean yourself off of it. We are building independent careers here, so having a variety of incomes in many different spaces is a plus, and it also builds our name and networking in the world. We get to be versatile.
Stay Organized
As you do different jobs, document it in some way. I keep all my jobs in a spreadsheet. I keep track of who I’m talking to, the details of what they are looking for, how much they are paying me, if I’ve invoiced them, if they’ve paid, and any other useful information. Keeping track of your jobs not only makes you more professional in the eyes of your clients, but it also makes taxes much easier.
Protect yourself as much as possible with contracts and proper invoices. I recommend all independent artists get themselves a copy of the the Graphic Artists Guild handbook. It has all the information you may need on what to charge, how to invoice, and contracts. Don’t do work without a contract that protects you if things go south.
Expect ebb and flow…
When you are an independent artist, there will be feast and famine. Some seasons you may work a lot, and some seasons you may work little. During the little work seasons, that doesn’t mean you have nothing to do. You can do independent work that doesn’t need a client: make your own artwork, build your website, apply to grants, collaborate with other artists, etc. There are many opportunities that you can make for yourself, that can not only make you some money, but build your networking so you get future work.
…and prepare for it.
Try to put away some money in a savings account. This way you’ll have cash during lean months. If you want actual concrete numbers, I always put 10% of all my independently earned income into a retirement account. Depending on the type of retirement account you have, this can save you money off your taxes. If you can’t afford to lock your money into a retirement account, start with the savings account. If 10% is too much, try 6%, 5%, something. Start your savings as early as you can. Any little bit you can put away will help you in the future, either with retirement, purchasing a home, or life emergencies. Do what you can to prevent yourself from working paycheck-to-paycheck, because as a freelance artist, sometimes those paychecks don’t arrive at reliable times.
Okay, so taxes.
I can’t actually help you with your taxes. But what I am going to do is tell you, you should learn about it, because it is worth it. It’s worth making business deductions. It saves you money. It’s worth it. And it’s not as scary as society makes it out to be. You can do it. I believe in you.
Here’s a little bit of generalized advice: Put away about 20-30% of your art business income into a savings account to pay your taxes with at the end of the year. I know it seems like a lot, but you could need it, and it’s better to be safe than sorry. Additionally, here are some resources that can help you learn more about money and taxes. I’ll add more to this list as I find them.
Taxes:
Contracts and Invoices:
Last updated: April 26, 2024
Conclusion
I’m an art educator, not a financial planner. I want you to go to someone more qualified than me to learn about it. But being an artist means not being afraid of money, and facing it head-on. We are not starving artists. I want to empower you to face your finances head-on and with pride. It’s nothing to be afraid of. You can do it.
More Resources Posts:
