 Jon DeHarpporte |
taxes how about taxes on photo sales? how to photographers go about paying them? is tax included in the price of photos etc..?
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Mark Feldstein |
Section 61 of the Internal Revenue Code says (assuming you're a U.S. citizen) that you must report all income "from whatever source derived". That tells you you have to report it. How you collect and pay the tax on it is pretty much up to you. Some states require that you collect sales tax as well, plus there's state income tax. OTOH, there are deductions you may take for reasonable and necessary expenses associated with earning the income. The solution is to run your business like a business. Talk to a bookeeper or accountant to set up your records and to know what record-keeping requirements you must comply with. They'll also help you devise a program for collecting and paying taxes to state, local and federal entities, set up tax impound accounts and do your taxes at the end of your fiscal year.
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Jerry Frazier |
What tax are you talking about? Sales tax, it depends on your state, I think. Federal income tax, yes. State tax, it depends on your state, I think. In CA, you have to pay sales tax only on the sale of goods. But, don't let that BS fool you. The rule is, if you sell something from your service, the service is taxed too. Therefore, in practice you tax every thing you sell, whether product or service. Remember, sales tax is just transfer payments anyways, so it doesn't matter. You just collect them, and pay them, so it shouldn't affect you at all. This is so mis understood by so many people. All you are is an agent for the State.
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