Why Coaches Keep Overpaying Taxes
Why Coaches Keep Overpaying Taxes
If you are a coach or entrepreneur, chances are you are passionate about helping others transform their lives or businesses. You invest in learning, in tools, and in growth. But there is one place too many high-achieving coaches overlook: their tax strategy.
And here is the truth. Most coaches are overpaying in taxes.
Not because they are careless. Not because they are doing anything wrong. But because they do not have a strategy.
That is why I invited Catrina M Craft, a CPA and tax strategist who works with some of the most successful coaches, consultants, and creators in the industry, to join me on The Amanda Kaufman Show. In this episode, we talked about the mindset and the strategy that can help you stop overpaying and start keeping more of what you earn.
It Is Not About the Code, It Is About Knowing How to Use It
As Catrina shared, “The tax code is not fair, but it is your opportunity.”
That might sound surprising, but it is true. The tax code is written to reward business owners and investors, the people who create jobs, stimulate the economy, and take financial risks. Yet most coaches never get the benefit because they simply do not know how to apply those rules in their favor.
When you treat your coaching business like a business, not just a calling or a side project, everything changes. You start understanding how your structure, your spending, and your planning all tie into your financial freedom.
This is where tax strategy becomes wealth strategy.
The Missing Strategy That Costs Coaches Thousands
Many new entrepreneurs make a common mistake. They form an LLC and think they are all set. But an LLC is just the beginning. It can be taxed four different ways: as a sole proprietorship, partnership, S Corp, or C Corp.
Without the right tax election, you might be paying thousands more than necessary each year. And it is not just about business structure. It is about understanding what is “ordinary and necessary” for your specific industry.
Catrina shared that many of her clients were shocked to discover they could have been deducting legitimate business expenses all along, from professional development to travel used for meetings, but their previous accountants never mentioned it.
You cannot save on what you do not know.
You Can Still Go Back and Fix It
Here is the best part. Even if you have been doing this for a while and realize you have missed opportunities, it is not too late.
Catrina explained that business owners can often go back three years and amend tax returns. She has helped clients recover thousands of dollars they did not even realize they were owed.
That is an empowering reminder that financial mistakes can be corrected.
It is not just about making more sales. It is about keeping more of what you already earn.
When you start approaching your taxes with curiosity and intention, you begin to shift from reacting to planning. You stop seeing taxes as a burden and start viewing them as a tool.
Operate Like a Professional, Not an Amateur
One of my favorite parts of our conversation was when Catrina said, “If you set up a business, operate as a business.”
That means documenting your decisions, having regular meetings (yes, even with yourself if you are a solopreneur), and tracking your goals and financials. It also means working with professionals such as tax strategists, attorneys, and advisors who understand your industry and can guide you correctly.
In the coaching world, it is easy to get caught up in creativity, client delivery, and marketing. But being a successful coach also means being a responsible CEO.
When you embrace that mindset, you protect your business and open doors for growth that compliance alone cannot provide.
Small Shifts That Make a Big Difference
Here are a few shifts inspired by our conversation that can help you start saving smarter:
Do not wait until tax season to plan. Tax strategy should happen all year, not just when you are filing.
Know your structure. Make sure your LLC or corporation is set up and taxed in a way that aligns with your goals.
Track your deductions intentionally. Learn what qualifies as “ordinary and necessary” for your specific line of work.
Ask better questions. Do not settle for “just compliance.” Work with a professional who helps you think ahead.
Review your past returns. You might have missed deductions that can still be claimed.
Empowerment Through Education
When you understand your taxes, you reclaim power. You stop feeling like the system is stacked against you, and you start leveraging it to your advantage.
That is what I love about conversations like this one. They are not just about money. They are about mindset. They remind us that awareness creates options, and options create freedom.
So, if you have been feeling uncertain or even a little ashamed about not understanding the financial side of your business, take this as your permission slip to start fresh. Educate yourself. Ask for help. And most importantly, take action.
Because financial empowerment is not just for the wealthy. It is for the wise.
Watch the Full Conversation
You can catch my full interview with Catrina M Craft on The Amanda Kaufman Show on YouTube or wherever you listen to podcasts.
This episode is packed with insights that will help you keep more of what you earn and build a stronger, smarter coaching business.
Disclaimer
The information provided in this content is for general informational purposes only and should not be considered specific tax advice. Before acting on any information presented, consult with a qualified tax professional or CPA to discuss your individual situation and ensure compliance with applicable laws and regulations.
Connect with Catrina M Craft
Instagram: https://www.instagram.com/catrinamcraft/
YouTube: https://www.youtube.com/@catrinamcraft7801
Facebook: https://www.facebook.com/catrinamcraft1
LinkedIn: https://www.linkedin.com/in/catrinamcraft/
More Ways to Connect with Amanda Kaufman
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