learnfinancewithNIL Money, Planned · session 6 of 13 · 30 min
Records a Tax Pro Can Use
- Keep four things for every deal, in one folder.
- Save the receipts that let a tax professional decide what counts.
- Know when a deal in another state matters, and when to get a tax professional.
Good records are not for you. They are for the person doing your taxes, and for the day someone asks. A shoebox is a record. A folder with dates is a better one.
Keep four things for every deal: the agreement, the invoice or payment notice, proof the money landed, and receipts for what the deal cost you. Travel, gear, an agent’s fee, a photographer.
Some costs of earning NIL money can lower what you owe. Which ones, and how much, is a tax professional’s call. Your job is to keep the receipt so the call can be made.
| Item | Kept as |
|---|---|
| Agreement | A dated copy, paper or PDF |
| Invoice | The copy you sent, with the date it was paid |
| Payment | The bank statement line that shows it landing |
| Costs | Receipts, each labelled with the deal’s name |
You did an appearance across the state line and were paid for it. What matters?
Pick your answer first, then open it.
Where you earned it can matter for state tax. Note the state and the date, and tell your tax pro.
✓ Right. Some states tax money earned inside them, even by visitors. You do not have to know the rule. You have to keep the note.
Only your home state ever counts.
Not always. Where the work happened can matter. That is exactly why the date and place go in the folder.
Pay earned out of state is not taxed.
It is taxed. The only question is by whom, and that is a professional’s question.
When to get a tax professional: the first year NIL money is more than pocket money, the first deal outside your state, or the first time a form confuses you. Sooner is cheaper than later.
This week
Make one folder per deal, today, for every deal you have. Put the four items in each. Missing one? Ask the payer for it this week.
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