Okay, so let’s talk about something super important that maybe doesn’t get enough attention when it comes to getting ready for your makeup game: pre-makeup skincare! 💁 But wait, I’m about to take you on a slight detour that’s a little less skincare-glam and a little more … wait for it … finances! 😱 Shocker, I know. But as you step into this blog post, we’re talking money, hun. Specifically, how much you can make before Medicare goes up.
If you’re wondering, “What on Earth does this have to do with skincare?” Hold on, because while it’s not about your beautiful glow or the perfect concealer match, it’s about your health and making sure you have your future set up! And hey, even makeup artists like me have to deal with grown-up stuff like thinking about health insurance. So, whether you’re freelancing or smashing it at your 9-5, you’re gonna wanna pay attention to your earnings and how it could affect your Medicare tax.
So what’s the deal with Medicare, tax brackets, and all that grown-up stuff? Let’s break it down.
Why Does It Matter How Much You Make?
Alright, real talk: Medicare doesn’t care if you’re slaying the day with your perfectly winged eyeliner or having a lazy Netflix day. The second you hit a certain income level, they’re like, “Hey girl, we need you to pay a little more ’cause you’re making bank now.” So, yeah—there’s a cap where your Medicare contribution goes up. And I know what you’re thinking: when do I hit that cap?
Basically, if you’re making more than a certain amount each year (we’ll get to the specifics in a sec), Uncle Sam is like, “More money, more taxes!” 🙃
What Even IS Medicare?
Quick crash course for those of you who, like me, kinda blanked out during school’s “heavier” subjects. Imagine Medicare like your makeup primer that gets your face ready to stay lit all day—except it’s for your health when you get older or, you know, when life just decides to throw a curveball.
So Medicare is health insurance run by the government, mainly nice for folks 65+ or if you’re younger and qualify because you have a disability or specific illness. And here’s the thing: part of what you earn goes to Uncle Sam to fund Medicare! It’s taken as a teeny-tiny percentage of your paycheck, but there’s an extra charge for the #highrollers out here making that good money.
What’s This Tax I Have to Pay?
So, I guess you’ve covered the basics, right? But hold up: you’re working super hard as a makeup artist or have a side gig because, duh, everyone’s gotta hustle these days. Especially if you’re looking at getting your own sparkly 📸 ring light and quality products—those don’t pay for themselves.
Here’s how it goes down in the world of taxes:
Medicare Tax Breakdown:
| When You Make… | The Tax You Pay… |
|---|---|
| More than $200,000 (if you’re single) | Extra 0.9% tax on top of the normal 6.2% |
| More than $250,000 (if you’re married & filing together) | Extra 0.9% tax on top of the normal 6.2% |
Word of caution:
If you’re earning LESS than those thresholds (which 90% of us are, no flex) then you’re still paying your regular 1.45% Medicare tax. Business as usual!
But make more than those amounts—and boom, you get taxed an additional 0.9%. Yeah, it doesn’t sound like much, but trust: every coin counts, especially when you’re trying to cop that new Pat McGrath eyeshadow palette.
So, What’s the Earning Limit?
The government’s like your nosy aunt who checks your salary at Thanksgiving. Based on what you’re making, your Medicare rate creeps up when you hit those income buttons I mentioned earlier. This whole 0.9% increase starts affecting those who hit $200,000 annually. If you’re bringing in some boss-level income ($200,000+ as an individual or $250,000+ combined if you’re married and file jointly), that’s when Uncle Sam’s waving your paycheck like: 💸
Want an example? Fine, lemme nerd out for a sec:
If you’re an independent makeup artist and had a baller year, making $210K (that wedding season, though 🙌), you’d pay the extra 0.9% tax on the $10K over $200,000. That math checks out to about $90. Not too major, right?
The extra 0.9% applies only to the income you make over that sweet $200,000 mark.
Let me know if that blows your mind a little, but chill, because most of us probably won’t hit that threshold every year unless you’re out here doing a Beyoncé tour’s worth of gigs!
But Does This Apply to EVERYONE?
Big vibe check here: Nope! If you pull in less than $200,000 as an individual, or $250,000 as a couple, you’re good! No extra tax to worry about.
This is mainly for those of you seriously out there hustling or some combo of side hustles that’s got you stacking that paper.
For my freelancer babes (you survivors of the gig economy!), DON’T fret. You’re still responsible for tracking all your income (I see you, with those multiple 1099s 💪). If you do hit over $200,000 with all your combined work, welcome to the extra Medicare club.
Quick FYI:
When filing with your boo (as in husband, wife, partner who’s in this tax sauce too), the combined minimum pushes up to $250K. It doesn’t matter who earned what—once you make over that, then Uncle Sam expects that extra tax from both of you. Just keep it on the DL next time you post about making big moves because, you know, the taxman is always watching 📉.
Shoutout to the Self-Employed
Now, if you’re a free agent living your freelance makeup artist life, coming through for clients left and right, you already know how tricky taxes can get. Treat yo self to some CPA assistance, babe (not the cute leopard flats but a tax genius—kinda important!) because you don’t wanna get it wrong.
Can You Avoid Paying This Extra Tax?
Girl…if only! Unless you’ve got some magical loophole knowledge, it’s likely gonna land in your tax lap.
But hey, you can manage it by keeping your business finance separated from your personal income. Track your expenses like you track your skincare products. Everything from makeup brushes to makeup wipes can be an expense if it’s for your business, and claiming those can help prevent unnecessarily paying more taxes!
Also just keep checking where your total EARNS are so you’re mentally prepared if you do end up crossing that payday milestone.
Skincare and Taxes? Stay Balanced!
Look, taxes and Medicare may not be as cute as your skincare routine, but stay woke about where your earnings are going. Your Medicare contributions are real, and knowing this stuff early on helps you stay prepared. The next time you’ve gotta bounce from doing a bridal party makeup to hitting your next gig, your financial health will be just as flawless as your skin!
Honestly, go get those bags sis—just make sure you keep enough for your taxes so you can glow financially AND physically!
Any Qs about taxes or pre-makeup skincare prep, leave ‘em below—or just slide into my DMs 😜
