Have a Tax Question? Ask a Tax Expert
Hello...my name is XXXXX XXXXX I am a Certified Public Accountant. I look forward to helping you with your tax question.
You would be considered self-employed as a sole proprietor. You will claim the income on Schedule C when you file your personal tax return. Any expenses associated with this income would also be included on Schedule C and your tax liability on the business will be based upon the net income.
Hi, Shane. As I stated in the question I am a very small independent photographer that over one year has made about 1,500 only. How do I pay taxes and do I need to file?
or less not really sure how much. I have do alot of pictures for free!
meaning...for example...if you made $1,500 in profits....you would pay tax on that amount. However, you may have deductions that would reduce this amount or result in you paying 0 taxes.
Oh WoW! Could you explain what possiable deductions might be:) so sorry really green on this
No problem...for the business, expenses could include items such as subscriptions/books for photography, film, editing software, membership dues, office supplies, office rent, utilities, business telephone, etc.
for personal deductions you would have your personal exemption and standard deduction (or itemized deductions if higher)...
Oh Ok! so do I have to get a tax id in order to get deductions and do i save reciets too?v Tax ids are expensive and I dont make that much money
No you won't need to get a tax id. As a sole proprietor on Schedule C you will operate using your social security number. You will definitely want to save receipts as these are your evidence to the IRS should you ever be audited that you actually incurred these expenses.
OH! OK! good! so do i need to file as a late tax or do it for next year? I dont know?
you will include all of your 2012 income and expenses when filing your personal tax return in 2013. You have until April 15th, 2013, to file your personal tax return and pay any tax, if you owe any tax...
ok good! I started on dec. 2012 so I will need to do this for march 2013?
Since you started in 2012, you can file your tax return anytime between January 1st, 2013 and April 15th, 2013.
Ok great! just to understand perfectly I go on my personal income tax under section C and regester my little company and see how much I own. than pay it or indicate if I have any expense on it like lighting equipment and props or lens.
Correct...if you use a tax software such as Turbo Tax it will help walk you through where to input your income and expenses by category.
great I really was scared that this was going to be really complicated! Thanks Shane Ok thanks again and I think that covers it!:0)
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Thank you =)