MENU
SEARCHIf you're self employed, the IRS expects you to make estimated tax payments throughout the year. Tax Attorney Tina Azarvand answers your questions on tax payments and offers advice on how to make it easier.
Tax Attorney Tina Azarvand helps salon owners and independent stylist stay out of trouble with the IRS by explaining key points regarding estimated tax payments for the self employed.
Running a salon or working as an independent hair stylist brings its own set of challenges, and one aspect that can often be overlooked is managing taxes.
Whether you're a salon owner or a freelance stylist, understanding and meeting your estimated tax obligations is crucial to staying on the right side of the IRS. The guidance below breaks down the basics of estimated tax payments to help you navigate this often-confusing terrain and keep financial affairs in order.
Unlike traditional employees who have taxes withheld from their paychecks, self-employed individuals, including salon owners and independent hair stylists, are responsible for paying their taxes throughout the year. Estimated tax payments are quarterly payments made to cover income taxes, self-employment taxes, and any other taxes owed.
If you are self-employed and expect to owe $1,000 or more in taxes when you file your annual return, you are generally required to make estimated tax payments. This applies to salon owners and independent hair stylists who are sole proprietors, partnerships, LLCs, or S corporations.
Calculating your estimated tax payments can be a bit tricky, but it generally involves estimating your annual income and working with a tax professional to apply the appropriate tax rates. One approach is to use last year's tax return as a starting point and adjust for any changes in income or deductions. To calculate your estimated tax liability, you can use IRS Form 1040-ES, which provides a worksheet to help you determine the amount you should pay each quarter. Keep in mind that if your income fluctuates throughout the year, you may need to recalculate your estimated payments to avoid underpayment penalties.
One common pitfall for salon owners and independent hair stylists is not setting aside enough money for taxes and it can be challenging to avoid using every earned dollar to cover business expenses or personal needs and also save for taxes. A good practice is to set aside a percentage of received income for taxes.
Enrolling in the Electronic Federal Tax Payment System (EFTPS) may make the process smoother. EFTPS allows you to make electronic tax payments directly to the IRS, providing a secure and efficient way to fulfill your tax obligations.
The IRS imposes penalties if you underpay your estimated taxes or make late payments. Staying proactive and estimating income and adjusting quarterly can help avoid these penalties at the end of the year.
Understanding and managing estimated tax payments is a vital aspect of financial responsibility for salon owners and independent hair stylists. By staying informed, setting aside funds regularly, and utilizing tools like EFTPS, you can ensure that your tax obligations are met without unnecessary stress or financial strain.
The IRS offers many collection alternatives for businesses and individuals that cannot afford to pay their past due taxes in full. These collection alternatives include submitting an Offer in Compromise, entering into an Installment Agreement, or being placed into Currently Not Collectible Status. In addition to offering collection alternatives, the IRS provides penalty abatement under circumstances through the First-Time Penalty Abatement and Reasonable Cause Penalty Abatement programs.
Not sure where to start? Contact Azarvand Tax Law at (410) 698-4005 or book a free consultation online at AzarvandTaxLaw.com
About the Author: Tina Azarvand is a Tax Attorney and is the founder of Azarvand Tax Law. She assists businesses with preventing, defending, and resolving tax controversies with the IRS and local taxing authorities. In 2023 and 2024, she was selected to the SuperLawyers: Rising Stars list, a distinction that less than 2% of attorneys receive.
Originally posted on Salon Today
Square data shows that regular customers tip 11% higher and are shared across 32% of businesses in the same ZIP code, driving thousands of dollars in additional revenue per connection.
When Bowie Lau and Jeffrey Ching opened JBW Jeffrey Ching Salon in 2011, they weren’t just launching another luxury hair destination—they were building a business rooted in passion, artistry, and thoughtful growth.
Sponsored by Amex
Inside the Systems That Power an Elevated Salon Experience From seamless online booking to a team-first culture, J Gold Salon in Atlanta offers more than great hair—it delivers consistent, high-touch service with the help of partners like Boulevard and American Express.
Sponsored by Amex
Want to grow your career as a beauty professional? K18 Sales Manager Sabrina Sanborn shares advice on networking, mentorship, and self-advocacy—from attending hair shows to finding the right guidance to reach your goals.
A combination of clear policies, effective communication, and strong client relationships has helped me create a more reliable and efficient booking system.
Founded by Cleveland serial entrepreneur Shaura Rodgers, Nailtorious has grown to include a nail supply megastore, training facilities, and retail line for nail techs.
This period after the holidays can bring on a huge lull for hairstylists. We asked Cosmo Prof's team of professionals to offer their best advice on how to deal with the January-February slow period.
Key highlights include a push toward inclusive spaces for all abilities, an emphasis on maximizing livable square footage, and a continued love for modern farmhouse exteriors.
The busy holiday season is here, and with it comes jam-packed days, last-minute client requests and booming retail sales. For many salon owners, the highlight of the season is Small Business Saturday® (SBS). This year on Saturday, November 30, consumers can take their shopping into the small businesses in their communities.
Sponsored by Amex
Want to become savvy about your personal finances, but don't quite know where to start? Anna Manukyan identifies six important concepts for building a strong financial foundation.
Salon owner Nuri Yurt had a dream of owning a salon on New York City’s Madison Avenue. "Through perseverance, hard work and stellar customer service, he and partner John Kaygisiz founded Toka Salon in 2007.
Sponsored by Amex
This guide is your one-stop shop for a plethora of technology tools, software and services created to keep your salon or spa thriving.
Anna Manukyan shares a breakdown of what different types of financial accounts should be used for.
Vagaro has consistently been at the forefront of salon software technology, helping businesses be more efficient, create more effective communication, and even improve company culture. Now, Connect by Vagaro, the platform’s two-way communication capability, and Vagaro’s new generative AI tools are giving owners new opportunities to grow and expand.
Sponsored by Vagaro
Young Nails' Greg, Habib, and Tracey discuss whether getting too close to clients can damage your business.
This list of watch-outs from @jodydoesjels prompted us to reach out to her and learn more. We had already fallen for her hand-painted designs and now we wanted to know more about this list she created to help clients decide if she was the nail tech for them.
Education is necessary for beauty professionals to maintain their cosmetology licenses, and paying for that education can be burdensome, but it doesn't have to be. Understand which education tax credits can help you offset those costs.
