What I’ve Learned About Taxes as a Student Artist
By Meelena Spikes – April 24, 2025
Disclaimer: This blog post is based on my experience as an artist and accounting student and is intended for general informational purposes only.
I am not a licensed tax professional, and this should not be considered formal tax or legal advice.
For personalized guidance, please consult a certified public accountant (CPA) or your state’s tax authority.
What Taxes Do I Actually Have to Pay as an Artist?
As both an artist and an accounting major, I’ve had a unique perspective on the business side of creativity. This blog post is part of my Honors Capstone project at Texas State University, where I’m exploring the realities of building a small art business. Taxes felt overwhelming at first, but after talking with professors and digging into state and federal guidelines, I’ve gained a clearer picture of what applies to me — and possibly to other artists in similar situations.
From what I’ve learned, two of the most important taxes for someone like me — a sole proprietor selling physical goods in Texas — are sales tax and self-employment tax.
1. Self-Employment Tax
Self-employment tax covers Social Security and Medicare. Since I’m self-employed, I’m responsible for both the employer and employee portions — totaling 15.3% of my net earnings (after expenses).
Here’s how I’ve learned it works:
I report business income and expenses on Schedule C (Profit or Loss from Business)
I calculate self-employment tax on Schedule SE (Self-Employment Tax)
Both forms are filed with my individual tax return (Form 1040)
I can deduct half of the self-employment tax as an adjustment to income
Even if I don’t owe income tax because of deductions, I still owe self-employment tax once my business is profitable. That’s made this one of the most important taxes I plan for.
2. Texas Sales Tax
Because I sell physical products like prints and stickers to customers in Texas, I’m responsible for collecting and remitting state sales tax.
Here’s what I’ve gathered so far:
Texas has a base rate of 6.25%, with local rates that can push it up to 8.25%
I need a Texas Sales and Use Tax Permit once my sales become more regular
My filing frequency depends on how much I collect in tax — monthly, quarterly, or annually
I also learned that digital commissions delivered electronically are generally not taxable in Texas, but I try to double-check how I’m delivering work just in case.
Do I Need a Sales Tax Permit Yet?
In the beginning, when I was only selling the occasional sticker to friends, I wondered if a permit was necessary. Here’s how Texas approaches it:
Even small or occasional sales are taxable
If I don’t have a permit, I legally can’t charge tax as a separate line item
But I’m still responsible for remitting that tax out of what I earned
For example, if I sell a $5 sticker without a permit, I can’t charge $5.41 — but I still owe tax on that $5. As my business grows and becomes more consistent, I plan to file for the proper permit so I can legally collect and remit sales tax.
Texas Sales Tax Filing Frequency by Volume
Monthly: If I collect $500+ in tax per month
Quarterly: If I collect less than $500/month, but more than $1,500/year
Yearly: If I collect $1,500 or less annually
Even if I don’t make sales in a given period, I still need to file a “zero” return — that’s something I didn’t know at first.
Important Notes:
The Texas Comptroller assigns filing frequency based on estimated sales when an application is submitted.
If the business grows, they can change filing status and notify of the update.
Even if there’s no sales, still file a “zero” return for the period.
3. But What About Income Tax?
As a sole proprietor, all my business activity flows through my personal tax return. I use Schedule C to report income and expenses, and the result affects my federal income tax.
Depending on:
My total income
My deductions (like tuition or business expenses)
And whether I exceed the standard deduction threshold…
…I may or may not owe income tax. But if I’m profitable, I will owe self-employment tax regardless.
2025 Federal Income Tax basics (Single Filers)
Let’s say:
I made $20,000 from art
I spent $4,000 on expenses
My net income is $16,000
Based on my understanding:
I’d owe about $2,450 in self-employment tax
My taxable income after the $15,000 standard deduction would be $1,000
That would put me in the 10% income tax bracket — about $100 owed
So even though income tax might be minimal, the self-employment tax is significant, which is why I take it seriously in my planning.