who uses smugmug?

[akimartymar]

I'm curious on how to claim and pay sales tax on prints sold through them. As far as I know there is no way to set it up where sales tax is charged, but the state is still going to want their cut. So how do you go about paying your due tax?

[L Stegall]

I think if you set up a pro account at smugmug, they will collect the appropriate sales tax for sales to the right state if you check the right boxes in the account manager. You would still have to report the sales to the state and pay the tax to the state.

[boxofrocks]

I use them. My understanding is that since they are internet orders, I don't think they charge sales tax at all to TX residents.

Anyway, even if they did, they are the ones collecting the tax, and not you, so you don't need to keep up with it. You aren't really selling anything--they are the ones that handle the transaction to the consumer. Just like you don't pay sales tax on photos you print for resale (at the lab), the money that smugmug pays you is devoid of sales tax--you are basically a wholesaler in this case. You just report the checks you get from s.m. as revenue to the Feds.

[akimartymar]

Thanks for the help in understanding Tom. I was ready to start paying taxes on my full check amounts.

[boxofrocks]

Originally Posted by akimartymar

Thanks for the help in understanding Tom. I was ready to start paying taxes on my full check amounts.

I'm not a CPA, so don't count on my advice. That's what I do, because my CPA told me it was OK.

You may want to check it out yourself, but I think that's correct.

[xtnomad]

I am not a CPA but will list SM check as other taxable income, and file the W-9 ( I think) that SM requires to receive a check. The way i see it is i am providing a service and they collect the tax from the end user, or customer.