A question I’ve been asked several times is, “how do Beachbody Coach income taxes work?”
Or, “do Beachbody Coaches have to pay income taxes on their earnings?”
In this post I’m going to be answer these questions and explain how Beachbody Coaches income taxes work.
First, if you’re not a Beachbody Coach yet, my advice is to NOT worry about taxes. Don’t get stuck on minor details and let something like taxes prevent you from taking action. Make some money FIRST, and worry about taxes second.
And second, I’m NOT an accountant. This post is just some basic advice and recommendations. Be sure to consult with a professional when tax time comes.
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Do Beachbody Coaches Have To Pay Income Taxes?
Yes, this is America, and in America we pay taxes on income we earn. (Aircraft carriers are not cheap and someone has to pay for them. The exact cost this of aircraft carrier is a whopping $13 Billion – You can read about it here.)
Beachbody Coaches are classified are “Independent Contractors” and sent a 1099 form at the end of the year that they use to file their taxes.
Beachbody Coaches are responsible to setting aside a portion of their earnings to pay taxes with. It’s recommended to pay an estimated amount quarterly. This will help keep you on track and prevent you from going on a spending spree with your tax money, and then be screwed when it comes time to pay. (And also prevent you from having to pay any penalty fees.)
The good news is that being an Independent Contractor opens you up to tax benefits and savings. If you receive a 1099, you’re also able to deduct any business expenses you had throughout the year. (For example, some business expense might be; a new laptop for work, car mileage used for business, office supplies, advertising costs, cost to travel to and attend a seminar, etc.)
(SEE ALSO – 6 Home Based Business Tax Deductions You Don’t Want To Miss)
Beachbody Coach Income Taxes – Don’t Put The Cart Before The Horse
Like I mentioned above in the first few sentences of this post, when first starting out my advice is to not worry about taxes. Focus on making some money FIRST. All you really need to know is that you should put away around 30% of your earnings to cover your taxes.
I made the mistake of not setting aside money my first year as a Coach, but since I did not make very much my first year, I did not have to come up with a very large sum of money. Either way, it was a good learning experience for me.
Typically your first year as a Beachbody Coach you won’t make very much money anyhow, so it’s not that big of a deal if you screw up a little on your taxes.
SEE ALSO: Beachbody Coach Earning Expectations
Also, this is just some basic advice from a fellow Beachbody Coach. I’m NOT an accountant and my advice is to consult with a professional when it comes time to take care of your Beachbody Coach Income taxes.
My main message is, don’t be one of those people that says something like, “I don’t want to make any money because I don’t want to have to pay taxes on it”… I’ve actually had someone say that to me before.
Don’t be like that, that’s crazy talk.
Click Here To Get My FREE Ebook, “8 Things You MUST Know Before You Become A Beachbody Coach”