Episode 322: Tax Tips for Women Entrepreneurs: What the Tax Industry Doesn’t Want You to Know with Hannah Cole
The Tax System Was Built for Humans — Including You
Most of us were never taught how taxes actually work. Not in school, not at home, and definitely not by the accountants who charge by the hour to explain what’s freely available on the IRS website. So it makes sense that for a lot of women entrepreneurs, the word "taxes" triggers an immediate full-body stress response.
Here's what I want you to know going into this episode: that stress response was manufactured. And tax expert Hannah Cole has spent her career proving it.
As the founder of Sunlight Tax and author of Taxes for Humans, Hannah helps self-employed people see that the tax system is more forgiving, more accessible, and more useful than most of us have been led to believe. These tax tips for women entrepreneurs are the conversation I've been wanting to have for a long time — and Hannah delivers in the best possible way.
In this episode of the Game On Girlfriend® podcast, we cover why the tax industry profits from your fear and how to stop falling for it, how IRAs work as real wealth-building tools for self-employed women, the practical difference between a Roth IRA, traditional IRA, and SEP IRA, why creativity and resourcefulness are actually the same thing when it comes to money, and how to start seeing money — taxes included — as a tool that works for you rather than against you.
If you've ever felt like the financial world wasn't built for someone like you, this conversation will feel like a relief.
Watch the full episode
Why the Tax Industry Profits from Your Fear
Hannah said something early in our conversation that I haven't stopped thinking about: the tax industry's primary marketing mechanism is fear. Not education. Fear.
It's the same playbook the beauty industry uses. Tell people they're not enough, make the solution sound impossibly complicated, and then charge them to fix it. Once you see that dynamic clearly, a lot of the anxiety around taxes starts to lose its grip. The IRS website has plain-language explainers on nearly everything — and the system itself is far more humane than most people realize.
You were trained to feel afraid of this. You weren't born dreading your Schedule C.
Tax Tips for Women Entrepreneurs Start Here: Nobody Got a Tax Education
One of the most relieving things Hannah shares with every new client is this: every single person who walks through her door believes they are the one person who doesn't understand how taxes work. Every. Single. One.
"Nobody gets a tax education in this country, and so, all of my clients feel like they are the one person who doesn't know how it works—and everyone feels that way." — Hannah Cole
That's not a personal failing. It's a gap in how we're educated — or more accurately, how we're not. For women, creatives, and anyone who doesn't fit the traditional mold of who "business" was built for, that gap can feel even wider. You sit across from someone who doesn't see your work as legitimate, and suddenly every question you had flies right out of your head.
Hannah knows that feeling firsthand. Early in her career as a working artist, she sat down with an accountant who responded to her accomplishments by asking when she would get a real job. Instead of shrinking, she went back to school for accounting. Sunlight Tax exists because of that moment — built specifically to serve the people who experience being left out: women, BIPOC folks, queer people, creatives, and anyone doing work that doesn't fit neatly into a conventional box.
"Your superpower is being the one to identify an unmet need. If people like me are not being served in this way, then I'm going to create a business that serves people like me." — Hannah Cole
How IRAs Actually Work for Self-Employed Women
This is where the episode gets really practical. Hannah walks through the three main IRA options available to self-employed people — in plain, clear language that finally makes it click.
Traditional IRA: You can contribute up to $7,000 per year (or $8,000 if you're 50+). Your taxable income drops dollar-for-dollar by whatever you put in. Depending on your tax rate, that's a real savings of $1,000–$2,000 this year. When you withdraw the money in retirement, you pay ordinary income tax on it — ideally at a lower rate than you're at now.
Roth IRA: Same contribution limits, but the benefit comes later. You contribute money you've already paid taxes on, so there's no reduction to your taxable income today. The payoff comes at retirement, when you take that money out — after years of compound growth — completely tax-free. That's a bigger deal than most people realize.
SEP IRA: This one is designed specifically for the self-employed. Rather than a fixed dollar cap, you can contribute up to 20% of your business profit. In a strong year, that could mean putting $20,000 or more into a SEP IRA — shielding a significant chunk of your income from taxes while building real long-term financial safety.
All three of these tools exist for one reason: to incentivize you to invest in your own future. According to Hannah, maxing out your IRA every year is probably the single most powerful financial habit a self-employed person can build.
Money as a Tool, Not an Obstacle
Hannah and I keep coming back to the same idea from different angles: money isn't good or bad. It's a tool. A hammer can build something beautiful, or it can knock down a wall — the outcome depends entirely on who's holding it. Money is no different.
"I really want people to start thinking of money — and I include taxes and good tax education as part of this — as a rocket booster behind you, pushing you towards your goal." — Hannah Cole
For anyone doing mission-driven work, more money means more reach, more impact, and more capacity to rest — to take care of people you love without panicking about whether you can afford to step away. The oxygen mask principle is real: you cannot pour from an empty account any more than you can pour from an empty cup.
There's also a stereotype worth naming here — the idea that creative or passion-driven people are somehow bad with money. Hannah calls it what it is: creativity is a synonym for resourcefulness. You've already been building something remarkable, often on a shoestring. So think about what becomes possible when the financial tools are actually in your corner.
"You are exactly what the world needs right now. Pay taxes like your contribution matters. Advocate like you and your community matter. Set up your books and your business systems like your work matters. Build a business that serves people you care about with the unique thing that only you can do, like your vision matters." — Hannah Cole, Taxes for Humans
"In politics and in tax, sunlight is the best disinfectant. It gets rid of shame. It's just clarity." — Hannah Cole
So much of what holds women entrepreneurs back from building real financial security isn't about money at all. It's about the shame and the silence that have been built up around it for years. When we start talking about taxes the same way we'd talk to a trusted friend — openly, without fear — everything shifts. More clarity leads to better decisions. Better decisions lead to more money in the hands of more women. And women with more money don't just sit on it — they use it to take care of their people, fund their dreams, and pour back into the world around them. That is exactly why conversations like this one matter so much.
About Hannah Cole
Hannah Cole is an artist, tax expert, author of Taxes for Humans, and founder of Sunlight Tax. She specializes in educating entrepreneurs and creative professionals in taxes and financial empowerment. A long-time working artist with a high-level exhibition history, Hannah is a frequent speaker on stages and podcasts, a money columnist for the art blog Hyperallergic, and the host of a global top 2% podcast, the Sunlight Tax Podcast. Her company, Sunlight Tax, specializes in friendly, informative tax education for self-employed people with big visions, and engaging, savvy tax education workshops for creative groups.
Connect with Hannah
- Website: Sunlight Tax
- Instagram: @sunlighttax
- LinkedIn: Hannah Cole
Hannah's Free Resources
Related Episodes You'll Love
Episode 230: You Deserve the Money with Bookkeeper Ashley Chamberlain
Ashley talks about the money mindset and worthiness blocks that stop women from earning what they deserve — which connects directly to Hannah's message about fear and financial empowerment. Listen here
Episode 227: How to Clear a Money Fog with Mikelann Valterra
Mikelann's work on money anxiety and healing our relationship with money is a natural next step for anyone who just listened to Hannah talk about tax fear and shame. Listen here
Episode 95: When Your Life Falls Apart Because of Money with Michelle Arpin Begina
Michelle's mission to put more money in the hands of more women aligns directly with Sarah's own mission — making this a natural fit to close out the related episodes section. Listen here
Let's Keep This Conversation Going
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Connect with Sarah
- Instagram: @thesarahwalton
- LinkedIn: Sarah Walton
- Free resources for you
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Love This Episode?
If this conversation helped you see taxes — or money — a little differently, pass it along to a fellow woman entrepreneur who could use a breath of fresh air on this topic. Sometimes the best thing we can do is remind each other we're not alone in figuring this out.
About Sarah Walton
Sarah Walton is a business coach and the host of the Game On Girlfriend® podcast. Her mission is simple: to put more money in the hands of more women. She helps women entrepreneurs build profitable, sustainable businesses without burnout — working through both the mindset and the strategy sides of growth. Because when women have more financial power, they don't just keep it — they use it to take care of their families, support their communities, and build something bigger than themselves. Through her programs — including the Abundance Academy and The Art of Receiving — along with her online courses and one-on-one coaching, Sarah works with women who are ready to build profitable businesses and use that financial power to make a real difference in the world around them.
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