Mastering Taxes as a PMU Artist: Essential Tips for Tax Season Success

As a permanent makeup (PMU) artist, you’re a master of creativity and precision—but how about managing the financial side of your business? With tax season upon us, it’s crucial to stay ahead, avoid common pitfalls, and leverage financial strategies to secure long-term success.

In Episode #12 of the Tatter-a-Fact PMU Podcast, we brought on tax expert Marc Rizzo, a self-proclaimed tax enthusiast with decades of experience helping entrepreneurs manage their finances. Marc’s passion for taxes and his practical advice make this episode a must-listen for every PMU artist. In this blog, we’ll share key insights from the episode and actionable steps you can take to simplify your tax process and secure your financial future.

Why Filing Taxes Correctly is Non-Negotiable

Marc emphasizes that taxes are not just a legal requirement—they’re a reflection of your success as a business owner. Paying taxes might feel burdensome, but it also opens doors to financial opportunities such as:

• Qualifying for Loans: Banks want to see consistent income when approving loans. Undeclared income may disqualify you from getting the financial support you need for a new home or business expansion.
• Lowering Interest Rates: Properly documented income can reduce your perceived risk as a borrower, leading to better loan terms.
• Avoiding Trouble with the IRS: Playing by the rules ensures you sleep well at night, knowing you won’t face audits or penalties for inaccuracies.

Marc’s Top Tax Tips for PMU Artists

1. Claim All Your Income:
   Many PMU artists are paid in cash. While it’s tempting to skip reporting cash payments, Marc strongly advises against this. “Undeclared income hurts you more in the long run than it helps,” he says. This is particularly important if you’re looking to qualify for a mortgage or secure business funding.

2. Know What You Can Deduct:
   PMU artists can deduct a wide range of expenses, including:

   • Supplies: Machines, pigments, needles, anesthetics, and disposables.
   • Training: Online courses, workshops, and conferences are fully deductible.
   • Workspace: If you work from home, a portion of your rent, utilities, and internet can be deducted as a home office expense.
   • Meals with Clients or Networking Events: Write down who you met, the purpose, and the business topic discussed on the receipt.

   Pro Tip from Marc: “For 2021 and 2022, meals are 100% deductible—but you need detailed records to qualify.”

3. Pay Quarterly Taxes:
   Don’t let tax season hit you like a freight train. Estimate your annual income and make quarterly tax payments. Paying in smaller chunks throughout the year helps you avoid penalties and ensures you’re not overwhelmed by a lump sum payment.

4. Stay Organized:
   Organization is key to avoiding stress and maximizing your deductions. Marc shares this simple system:

   • Monthly Receipt Folders: Have a folder for each month and place receipts for all business expenses inside.
   • Digital Purchases: For online orders, like Amazon, print or screenshot the confirmation emails and file them.

   A well-organized filing system will save you time and headaches during tax season—and protect you in case of an audit.

5. Use a P&L Statement:
   A Profit & Loss (P&L) statement is a simple yet powerful tool to track your income and expenses. It not only helps you see how your business is performing but also ensures you don’t miss any deductible expenses.

6. Hire the Right Tax Professional:
   Look for someone who specializes in taxes for small businesses and entrepreneurs, like an Enrolled Agent (EA) or CPA. Marc stresses the importance of working with a professional who can educate and guide you. “The more informed you are, the less you’ll pay in taxes legally.”

Checklist for Tax Season Preparation

Use this checklist to ensure you’re fully prepared for tax season:

Income:
✅ Track all sources of income (cash, card payments, and checks).
✅ Deposit cash payments into your business account for better traceability.

Expenses:
✅ Collect and file receipts for all business expenses: supplies, equipment, training, meals, and workspace costs.
✅ Write notes on receipts for meals or meetings (who, what, when, why).

Quarterly Payments:
✅ Estimate your annual income.
✅ Pay quarterly taxes to avoid penalties.

Organization:
✅ Use monthly folders (physical or digital) for receipts.
✅ Set up and maintain a Profit & Loss statement.

Professional Assistance:
✅ Hire a certified tax professional, such as an Enrolled Agent (EA) or CPA.
✅ Schedule a tax consultation to review your records and optimize deductions.

The Long-Term Financial Benefits of Being Tax-Savvy

Marc shares how adopting a smart tax strategy can set you up for long-term financial success. He highlights the importance of:

• Paying Off Debt: Marc guided one PMU artist to pay off their mortgage in just six years by being disciplined and frugal. Eliminating debt frees up more of your income for investments and savings.
• Investing in Retirement: Whether it’s through a Roth IRA, 401(k), or other investment vehicles, building a tax-free nest egg ensures financial security in your later years.

His mantra? “Start small, stay disciplined, and watch your financial tree grow.”

Tune into Episode #12 of the Tatter-a-Fact PMU Podcast

In Episode #12, Marc shares even more gems, including:

• The benefits of starting your business as an LLC versus an S Corporation.
• How to avoid common tax mistakes like underreporting income.
• The secret to paying less in taxes legally.

This episode is packed with practical advice for PMU artists at every stage of their careers. Don’t miss it!

Final Thoughts: Take Control of Your Finances

Taxes don’t have to be a source of stress. With a little organization, the right guidance, and a proactive approach, you can make tax season a breeze and even use it to grow your business.

By applying Marc’s tips, you’ll not only save money but also set yourself up for long-term success as a PMU artist. So, grab your receipts, create a plan, and start thinking of taxes as a tool—not a burden.