“Perfection is not a standard that can be met, but improvement absolutely is. Know that the IRS doesn't expect you to be perfect. The IRS mandate is to collect the substantially correct amount of tax, not the exact amount.”

Managing taxes can be an emotional rollercoaster, especially when one partner is self-employed. In this part 2 episode, Hannah Cole from Sunlight Tax joins again to share her journey, filled with stressful moments and heated arguments, all stemming from her initial lack of tax knowledge. She and Ed debunk the myth of tax perfection and focus on the importance of continual learning and improvement, particularly for freelancers who grapple with tracking profits and losses. Discover how couples can achieve financial harmony by understanding each other's financial responsibilities and the unique pressures faced by the primary breadwinner.

Freelancers and sole proprietors often find themselves lost in a maze of tax complexities. Many stumble into freelancing and are suddenly expected to master bookkeeping and tax management. Hannah reveals practical tips on the appropriate levels of bookkeeping and the tools to use based on the scale of one's business. This conversation empowers freelancers to manage their finances with confidence and avoid common pitfalls.

Financial transparency between spouses is critical, especially when dealing with joint tax returns and the nuances of self-employment taxes. Hannah and Ed dive into the different fee structures of financial advisors and the necessity of estimated quarterly taxes for freelancers. Hannah’s insights demystify the tax process and provide actionable advice for alleviating tax-related anxiety. Listen in for a revealing discussion that will help you take control of your financial well-being and foster a healthier financial relationship with your partner.

Key Topics:

• Taxes, Financial Intimacy, and Couples’ Knowledge Gaps (02:18)
• Financial Management for Small Businesses: Profits and Losses, Owner’s Compensation, and Equity (04:42)
• Accounting for Freelancers and Small Businesses (11:59)
• Financial Literacy, Bookkeeping, and Gender Dynamics in Personal Finance (16:42)
• Financial Advisor Fees and Transparency (25:54)
• Joint Tax Returns and Financial Transparency in Marriage (29:22)
• Quarterly Tax Payments (34:04)
• Wrap-Up and Parting Wisdom: Aim for Improvement, Not Perfection (39:02)

Resources:

• Sunlight Tax
• Sunlight Podcast

Connect With Healthy Love and Money:

1. Schedule your free 30-Minute Discovery Call About Therapy-Informed Financial Planning™.
2. Learn about your money and attachment style with this short Attachment Style Quiz.
3. Buy the Double Award Winning Book: The Healthy Love and Money Way.
4. Hit Follow on Your Favorite Podcast Player To Get

“I think you need to hold space and have empathy for yourself, about looking at it [taxes] and attempt to look at it as information and as neutral, even though you're probably going to have these stories that swirl in your head.”

How can understanding taxes strengthen your marriage? Our host Ed Coambs tackles this intriguing question alongside Hannah Cole, an artist turned tax educator. Hannah's journey from shying away from the business and taxes side of things to becoming a beacon of support for self-employed individuals is nothing short of inspiring. You’ll find yourself nodding along as Ed and Hannah discuss the common feelings of judgment from tax professionals and the vital role empathy plays in making money conversations less awkward and more productive.

Facing the emotional turbulence of tax season can be daunting, especially within the context of a marriage. Hannah helps us navigate this rocky terrain by shedding light on the vulnerability and shame many feel when revealing personal financial details. Ed and Hannah reflect on the need for a more human-centered design. By emphasizing the importance of relational support and empathy, the aim is to alleviate the anxiety often accompanying financial discussions and improve mutual understanding between partners.

Hannah and Ed also explore the concept of financial innocence and the idea of money as a neutral tool. They discuss practical advice on understanding self-employment tax, paying estimated quarterly taxes, and the consequences of neglecting these responsibilities. The discussion touches on the psychological and moral development necessary for a balanced perspective on money and the importance of confronting deep-seated fears about feeling broken or flawed. Tune in next week for a continuation of this rich, informative discussion designed to make financial conversations more approachable, empathetic, and productive.

Key Topics:

• Welcome, Hannah! Taxes, Artistry, and Financial Intimacy (02:03)
• Importance of True Understanding for Personal and Business Growth (04:27)
• Design Flaws in the Tax System (12:40)
• Taxes, Representation, and Financial Literacy (16:50)
• Tax Responsibility and Challenges for Married Couples (22:01)
• Money Agency and its Impact on Financial Decision-Making (27:49)
• Psychological and Moral Factors Behind Money (32:28)
• Tax Debt, Empathy in Accounting, and Avoiding Scams (37:31)
• Tax Fears, Comfort, and Growth with a Tax Professional (43:27)

Resources:

• Sunlight Tax
• Sunlight Podcast

Connect With Healthy Love and Money:

1. Schedule your free 30-Minute Discovery Call About Therapy-Informed Financial Planning™.
2. Learn about your money and attachment style with this short Attachment Style Quiz.
3. Buy the Double Award Winning Book: The Healthy Love and Money...

“Financial intimacy is as important as physical, romantic intimacy. It is as important and it takes a lot of vulnerability being able to trust another person to see what you have and what you don't have, and to still accept you and love you for that. That requires so much vulnerability.”

Get ready to transform your understanding of financial harmony in relationships! Our host, Ed Coambs, and fellow Financial Therapist Dr. Traci Williams share their wealth of knowledge on addressing financial conflicts within couples. You'll be equipped with actionable insights on why it’s crucial to understand each other's financial backgrounds and experiences before diving into budgeting. Traci explains how emotional and psychological factors play a pivotal role in financial decision-making, and why empathy and open communication are essential in resolving conflicts.

Ever wondered how your past trauma might be affecting your ability to plan for the future? Dr. Williams enlightens us on the importance of connecting with our future selves and the profound impact childhood trauma can have on this ability. Discover various therapeutic approaches to healing past wounds and why there's no one-size-fits-all solution. From envisioning future stages of life to focusing on personal growth, you'll find strategies to aid in your journey toward a healthier financial and emotional future.

Learn the critical importance of discussing finances early in relationships and identifying red flags that could jeopardize financial harmony. Dive into practical ways to align family values with financial decisions, and how to engage family members, even young children, in meaningful conversations about values and priorities. This episode is packed with essential advice to foster stronger family bonds and financial well-being.

Key Topics:

• Understanding Each Other’s Money Perspectives (01:17)
• Manage Conflict by Taking Breaks, Remembering Positive Aspects of Each Other (05:36)
• Connecting with Future Self, Healing Childhood Trauma, and Taking Action toward Your Desired Future (16:09)
• Financial Intimacy and Vulnerability in Relationships (22:27)
• Financial Therapy and the Connection to Personal Finance, Relationships, and Trauma (29:23)
• Navigating Hard Financial Decisions in Relationships (34:32)
• The Values Around a Financial Therapist (41:35)

Resources:

• Healthy Wealthy Roots on IG and TikTok
• Poui Consulting

Connect With Healthy Love and Money:

1. Schedule your free 30-Minute Discovery Call About Therapy-Informed Financial Planning™.
2. Learn about your money and attachment style with this short Attachment Style Quiz.
3. Buy the Double Award Winning Book: The Healthy Love and Money