a business/tax question: Could some one elaborate on charging tax for photography services/photos etc. I understand that in my state (TX) I will be filing quarterly or annual state...

dspoon2 Loc: Rockwall TX

Could some one elaborate on charging tax for photography services/photos etc. I understand that in my state (TX) I will be filing quarterly or annual state sales tax returns. How about on the federal level? Does it work the same way?

thanks in advance for your help

jerryc41 Loc: Catskill Mts of NY

dspoon2 wrote:

Could some one elaborate on charging tax for photography services/photos etc. I understand that in my state (TX) I will be filing quarterly or annual state sales tax returns. How about on the federal level? Does it work the same way?

thanks in advance for your help

The most important thing: keep good records, with receipts and invoices. In NY, unless you do a lot of business, you can file sales tax once a year - online. Of course, you would add sales tax to your customers' bills. As for the federal, there is no national sales tax, so you would file a Schedule C for your photo business income. Again, receipts are essential for income and expenses.

Unless you're doing this on a regular basis and making money, worrying about taxes is probably not necessary. If it is a regular business, then just follow the rules, and there won't be any problems. Claiming a home office can raise red flags at the IRS, since they have tightened the rules.

Checking with other photographers in your area and also with a tax person would be a good idea. You don't want to get a surprise visit from the IRS. Telling the IRS about advice you got on UHH might not get you off the hook.

MWAC Loc: Somewhere East Of Crazy

dspoon2 wrote:

Could some one elaborate on charging tax for photography services/photos etc. I understand that in my state (TX) I will be filing quarterly or annual state sales tax returns. How about on the federal level? Does it work the same way?

thanks in advance for your help

Texas is quarterly, don't worry they will send you a reminder that it's time to file. You can file on-line now, which is kind of nice.

Federal taxes are yearly, just like your personal taxes. As Jerry mentioned keep all your reciepts. I'm not sure about your city, but check to see if you need to be collecting any taxes/ or if you need to report anything to them as well. Some cities charge a business tax that is due yearly.

jerryc41 Loc: Catskill Mts of NY

MWAC wrote:

I'm not sure about your city, but check to see if you need to be collecting any taxes/ or if you need to report anything to them as well. Some cities charge a business tax that is due yearly.

You might have to file your business with your county.

dspoon2 Loc: Rockwall TX

thanks guys.

CaptainC Loc: Colorado, south of Denver

By all means check with your state taxing authority. In many cases, the photograph session is considered labor and NOT taxable - in other states it might be. Here in Colorado, sales tax is collected quarterly. You get a coupon book with a short form to fill out.
Depending upon your state, county, and township/city, each will have a cut of the tax.

BigDaveMT Loc: Plentywood, MT

Move to Montana. We have no stinkin' sales tax!

jba1 Loc: Detroit, Michigan

Hello,
Seems like your question is about filing quarterly Federal Income Taxes.
I operarated out of my home as a corporation (not photography-doesn't matter).
You would file quarterly on income earned or in my case estimated income.
There is no requirement to file quarterly that I know of but if your tax obligations are not met quarterly (i am not sure but it is a percentage like 80 or 90%) than you will be penalizized at the end of the year with a fine for each quarter you did not meet your tax obligation. Feds don't want to wait to the end of the year to get their taxes.
Best thing to do is to file a ES-2012 (this year) form every quarter and submit a check for what your taxes are estimated to be on the money you earned.
You can easily do this yourself. You do not need a tax man. As simple as paying a credit card bill. You can download the ES-2012 forms and work sheet from the Internet.
Good luck...hopes this answers your question.
Jim B

bobmcculloch Loc: NYC, NY

dspoon2 wrote:

Could some one elaborate on charging tax for photography services/photos etc. I understand that in my state (TX) I will be filing quarterly or annual state sales tax returns. How about on the federal level? Does it work the same way?

thanks in advance for your help

Time to check with a local competent authority, In NY you need to get a tax id to charge tax, then you have to send it in , schedule based on how many dollars are involved, at least last time I checked, I'd also get a FEIN, from the Feds used to be form SS-4, gives you a federal ID number for your income taxes, lots of stuff a local CPA could help you with, Bob.

jimberton Loc: Michigan's Upper Peninsula

BigDaveMT wrote:

Move to Montana. We have no stinkin' sales tax!

cool..i should move to montana....

question...do they allow redneck yoopers to imigrate there from the upper peninsula of michigan?

MCHUGH Loc: Jacksonville, Texas

When I was in business here in Texas they sent me a quarterly sales tax form each quarter. One thing I did that was a great help to me was to set up a special bank account which I deposited all the sales tax I collected as well as what I estimated I would pay in income tax. I made a weekly deposit no matter how small amount of tax I had collected. When the payment was due I always had the money to pay. Late payments are costly. You can not have too much paper to back every expense or income receipt. I went through a IRS audit once and it was a nightmare, but very educable. Be able to prove everything to the government.

pounder35 Loc: "Southeast of Disorder"

dspoon2 wrote:

Could some one elaborate on charging tax for photography services/photos etc. I understand that in my state (TX) I will be filing quarterly or annual state sales tax returns. How about on the federal level? Does it work the same way?

thanks in advance for your help

Just don't report anything. The government's just going to waste it anyway. If you feel the need to subsidize someone for not working just send your money to me. 20 % of gross will be fine.

BigDaveMT Loc: Plentywood, MT

jimberton wrote:

BigDaveMT wrote:

Move to Montana. We have no stinkin' sales tax!

cool..i should move to montana....

question...do they allow redneck yoopers to imigrate there from the upper peninsula of michigan?

Of course. We've got some Michaganders here already...not sure if they're Yooopers, but definitely rednecks. They fit in nicely.

Photoman74 Loc: Conroe Tx

CaptainC wrote:

By all means check with your state taxing authority. In many cases, the photograph session is considered labor and NOT taxable - in other states it might be. Here in Colorado, sales tax is collected quarterly. You get a coupon book with a short form to fill out.
Depending upon your state, county, and township/city, each will have a cut of the tax.

Welcome back Caption C missed your knowledge.

dspoon2 Loc: Rockwall TX

Jim B...that is exactly the information I was inquiring about and my CPA has my return for 2011 prepared and quarterly coupons printed...thank you so much