Tax Help for Tattoo Artists

Almost every artist we see is renting a chair rather than drawing a wage. That usually means self-employment, but renting the space is not by itself what settles it. The IRS applies the common-law test across three categories: behavioral control (does the shop direct what you tattoo and how?), financial control (who bought the machines, do you carry unreimbursed costs, can you take work from anywhere, and can you make a profit or a loss?), and the relationship of the parties (any agreement between you, whether you get employee benefits, and how permanent the arrangement is).

Where those point to independence, it means no withholding, self-employment tax on top of income tax, and the IRS expecting payments during the year rather than one settlement in April. The full test is in Topic no. 762, Independent contractor vs. employee, and Form SS-8 asks the IRS to decide a case that is genuinely unclear.

Deposits are worth mentioning. If you are on the cash method, as most artists are, a deposit you take for a session is generally income in the year you receive it, even if the appointment is months out. Artists who book heavily in December and tattoo in February often find their year looks different from what they expected. A genuinely refundable deposit you are holding on someone’s behalf is a different case, so tell us how yours works.

Equipment is where the biggest single decisions sit. A machine, a new chair, or a full autoclave setup can often be claimed entirely in the year of purchase — or spread out, if spreading it serves you better. Which one is right depends on the year, and it is a decision worth making deliberately rather than by default.

We are not here to lecture you about cash. We are here to make sure the expense side of your return is as complete as the income side, so the number at the bottom is the correct one.