New Year, New Numbers: How Artists Should Review 2025 Income Before Filing Taxes

The start of a new year gives artists and creative businesses a rare moment of clarity. The rush of holiday shows, last minute commissions, and year end sales has settled, and January becomes the one month where you can review your financial year without distraction. Looking closely at your 2025 income now sets the tone for a smoother tax season and more confident decisions in 2026. It is a chance to understand your numbers before deadlines and new creative commitments begin competing for your attention.

This review is not just about compliance. It is about seeing how your creative practice actually performed and which revenue streams supported your growth. A clear income picture helps artists, galleries, dealers, and creative entrepreneurs move into tax season with accuracy and control. When you understand your numbers, you make better decisions and avoid the stress that comes from guessing.

The Importance of Confirming Your Full Income Picture

Income for artists and galleries rarely comes from a single source. A year may include originals, commissions, prints, teaching, licensing, art fairs, digital products, and private sales. With so many moving parts, smaller payments can disappear into your bank feed without context. January is the best moment to confirm every type of income that contributed to your year.

Once you identify your revenue sources, consider which tax documents you should expect. Many creatives receive 1099s from galleries, dealers, platforms, and clients. Each one reflects different income earned in 2025. If part of your review involves preparing 1099s for contractors or confirming which ones you should receive, our blog Art Galleries: Your Guide to 1099s gives you a clear explanation of what to look for. Reviewing these documents early prevents surprises and gaps in reporting.

A complete income picture protects you at tax time and helps you see the year as it truly unfolded. When everything is accounted for, you are working from fact rather than memory.

Why Deposits Alone Do Not Tell the Story

A deposit is not the same as income. Bank statements show money received, but not the details behind it. A single deposit might represent several sales, shipping reimbursements, or platform deductions. Galleries and dealers often receive one payout for multiple artworks at different prices.

This can create confusion at tax time. Fees taken out before payout reduce your deposit but do not reduce taxable income. Artists using platforms like Shopify, Etsy, PayPal, or Artsy experience this often. Reviewing the meaning behind each deposit ensures your records reflect true gross income instead of reduced net amounts. Clean data prevents reporting errors and gives you a clearer view of your performance.

Reviewing Outstanding Invoices and Work Completed in 2025

Many artists and galleries end the year with unpaid invoices or pending payments. Even if cash has not arrived, those amounts still matter for your tax position depending on your accounting method. January is the best time to check which invoices were paid, which remain open, and which clients need follow up.

This review also reveals workflow patterns. Artists may see commissions finished in December but paid in January. Galleries may notice sales finalized late in the year but settled weeks later. These timing differences impact how you interpret your income and plan ahead. Including outstanding invoices in your income review helps you understand the full value of your work for the year.

Reconciling Platform Revenue Across Multiple Systems

Most creative businesses use multiple platforms to sell or receive payments. Each system handles reporting, fees, and payout timing differently. Shopify, Square, Stripe, PayPal, Venmo, Zelle, and gallery inventory programs rarely match your bank feed exactly.

Reconciling platform income ensures that no portion of your 2025 revenue was missed. Download your annual reports, compare them to your bookkeeping software, and check that fees and adjustments are recorded accurately. This is especially important for galleries managing multiple artists and sales channels. Clean reconciliation not only supports accurate tax filings but also helps you identify which platforms were most profitable.

Understanding Your Revenue Patterns Before Filing

Once your income is verified, you can begin assessing the rhythm of your year. This is where artists and galleries often gain the most insight. Reviewing when income peaked, when it slowed, and which offerings generated the most sales helps you understand your business more deeply than totals alone.

Artists may see that commissions carried their year or that print editions provided steadier income. Galleries may notice that a particular exhibition or artist drove a large portion of revenue. Creative entrepreneurs may identify seasonal trends in digital product or membership sales. Knowing these patterns helps shape your pricing, scheduling, and production planning for 2026.

Understanding your income rhythms also supports cash flow forecasting. When you know your slower months, you can plan more strategically and avoid unnecessary financial pressure.

Clarifying Your Tax Position for 2026

A clear income review prepares you for filing taxes with confidence. Accurate records make the process easier and reduce the likelihood of unexpected tax bills. Artists and galleries with fluctuating income especially benefit from clear year end numbers, as their quarterly tax estimates rely on precise reporting.

This preparation helps you make stronger financial decisions early in the year. Starting with accurate information reduces stress and allows you to plan rather than react.

Using Your 2025 Income Review to Strengthen 2026

Reviewing last year's income is not only about filing taxes. It is also a chance to build a stronger financial plan for 2026. Understanding which revenue streams performed well helps you prioritize what to grow. Seeing which offerings were time consuming but less profitable helps you refine or phase out what no longer serves your goals.

This clarity supports both creative planning and long term sustainability. When you work from accurate numbers, you can build a year that reflects your intentions instead of uncertainty.

Begin 2026 With Confidence

A new year invites you to organize your systems, clarify your numbers, and enter tax season prepared. Reviewing your 2025 income gives you a strong foundation for confident decisions throughout 2026. When your numbers make sense, your creative work can grow with greater stability and less stress.

If you want help reviewing your income or preparing your books for tax season, book a free consultation anytime to get personalized support for the year ahead.