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03/24/2014 04:26:24 PM · #1 |
So...
Do photographers have to pay sales tax? In searching on the web, it sounds like yes. But just exactly what tax is a little uncertain.
It says that sitting fees are taxable, but then it says that if you're a sole proprietor, your own cost of labor doesn't count.
So if you're the only photographer in your business, what sales tax do you need to charge your client? Sales tax on everything? Just on the cost of prints? It looks confusing...
Maybe I just need to sell the digital files, it sounds like that's not taxable if electronically transmitted, but I thought photographers made their money off the prints. |
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03/24/2014 04:35:05 PM · #2 |
Might depend on your state, but in Texas I have to pay sales tax on everything.
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03/24/2014 04:37:45 PM · #3 |
Sales taxes vary by state ... in California, you generally do not collect sales tax on services or food items which are not consumed on the premises. So, you would probably not charge tax for "photographic services" (capturing and editing the images), but you would charge for prints, DVDs, etc. If you're going to get into this, look into getting a resale license so that you DO NOT have to pay sales tax when you buy your photo paper and ink, blank discs, and other stuff you later sell to the customer. Whatever state agency collects sales taxes should have the rules available.
FWIW I'm not a CPA or lawyer, but my mom did voice-overs for some on TV ... ;-)
You might see whether Nolo Press has anything which addresses your local situation; many libraries have their self-help legal and business books. I know they have some packages of books designed for people working in the arts, covering incorporation, taxes, copyright, etc.
Message edited by author 2014-03-24 16:38:53. |
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03/24/2014 04:43:34 PM · #4 |
| so sales tax is only a state thing (which seems like a dumb question, because I know sales tax varies from state to state), but there's no federal portion, I take it? |
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03/24/2014 04:45:13 PM · #5 |
talk to the person that does your taxes (and i don't mean turbotax, jackson hewitt, or h&r block). it does vary from state to state, and things can be classified differently if you are a sole proprietor vs a business entity registered with the state corporation commission.
not meaning to offend you or anyone else, but this really is something to discuss with a professional, because if you get it wrong or make the wrong assumption, the consequences can be devastating...
Originally posted by vawendy:
so sales tax is only a state thing (which seems like a dumb question, because I know sales tax varies from state to state), but there's no federal portion, I take it? |
that is correct, there is no federal sales tax (at least for the time being).
Message edited by author 2014-03-24 16:46:11. |
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03/24/2014 04:49:56 PM · #6 |
| Here's a page of helpful links courtesy of the IRS ... there is no Federal "sales tax" but certain items are subject to a Federal "excise tax" (I guess where they excise money from your wallet), but that shouldn't apply to anything to do with photography. |
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03/24/2014 06:08:17 PM · #7 |
| Careful about just labeling it as a state only thing and assuming it's your state that is at issue....... It's sometimes not that clear cut.... What if your clients live in a different state? What if you send photos vs just providing a service? What if you travel to their state to take the pictures? You really should know the various requirements - time to talk to a CPA. |
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03/24/2014 07:14:12 PM · #8 |
I talked to the person who does my taxes, and she doesn't know diddly squat (because she's me. :)
I was a sole proprietor for 10 years, but that was as a computer consultant, so I didn't have to worry about the sales tax bit.
I'll definitely talk to a professional at some point, but I love starting here, because it helps me get more background and find out more about what to ask because of others' experiences. |
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03/24/2014 07:27:07 PM · #9 |
Originally posted by vawendy:
I talked to the person who does my taxes, and she doesn't know diddly squat (because she's me. :) |
LOL!!! My tax person is just as clueless... |
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