TX state Tax ??

[Breezy]

I had a shoot on the 30th they paid me for the sitting fee and the newborn session which includes a few prints. The check was not cashed obviously until Oct and they have not picked at the photos, so does that still count as Sept money earned for my quarterly taxes?

Also do sitting fees get charged taxes?
TIA

[island bound]

My understanding is that if you give them ANYTHING, then the whole thing is charged sales tax.
If you charged for sitting fee, but they never want or got anything from you, then no sales tax, but I imagine that would be a rare occurance.

Personally, I would probably throw it into Sept money, although I don't know the law on that. It's not that much and not worth a hassle later, if you should ever get audited.

[Breezy]

Thanks Chris.
I just know that when I worked in a studio the couldn't charge taxes on S&H nor on sitting fees.
The first 2 sessions I didn't charge a session fee so I didn't have that problem.
I will count it for Sept though.

[Buddha]

I would prefer that my accounts match the available paperwork and not rely on memory for what happened. That means that a check dated September would go in September's numbers.
That's actually pretty common. For large companies, the receipts may not actually arrive until after month end, but having the numbers match makes it easier to audit. You could also deposit the money and use the deposit date, but you need to do it the same way every time or even you can get confused if you have to go back later and figure out what happened.

[HotHolly]

In Texas, shipping and handling are actually subject to tax... http://www.window.state.tx.us/taxinf....html#collect8

[Breezy]

Thanks Austin and Holly.
That sucks.
So the Sitting fee is subject to taxes too?
I guess I will just deduct the taxes from the whole check and be done with it. That way I am covered.
thanks again guys

[Buddha]

I think S&H taxes apply only if you do the actual transporting. If Fedex does it, you've provided no service so charge no tax. You just pass through what you have been charged.

[MicWayWal]

You should charge Sales Tax on ANY service and/or product your company produces for a customer.
Sitting Fee? Yes, even if they never buy anything. Why? Because you provided a service
S&H? Yes
Products you produce and ship out of state? Yes, this is a recent change.

When do you report the transaction on your Sales Tax return? You have to report it at least by the date when you make the deposit and the money goes into your account, if you are operating on a cash basis. If you are reporting on an accural basis it could be different but let your bookkeeping software determine that for you. Most of all be consistant.

[Breezy]

Well that sucks that I now have to charge taxes for out of state. That is bs. Ugggh would be nice if I had gotten the news letter :(

[MicWayWal]

Originally Posted by Breezy

Well that sucks that I now have to charge taxes for out of state. That is bs. Ugggh would be nice if I had gotten the news letter :(

You probably did get the newsletter but if you are like me you read the first few paragraphs and then toss it. In the past when I protested that I was never notified they could tell me when and where I was notified. Most of us don’t read the stuff they send out to us. I didn’t. It is such legalese and too hard to read and comprehend. So I just blow it off. Buy you won’t when they hit you with a big bill for not doing it right.

Clarification: If you do the work in Texas, then you have to charge Sales Tax, even if it is delivered out of state. If both the business and customer live in Texas and the work is done out of state you still must charge Sales Tax.

If you have questions call them anonymously at their toll free number 1-800-252-5555 and ask them. They will answer your question without you having to identify yourself or your business. I have done this several times so in case I was doing something wrong they would not know it was I who was calling.

You can go to their website and find out a lot of information http://www.window.state.tx.us/

[MicWayWal]

If it was not for our Sales Tax, we Texans would be paying Sales Tax AND State Income Tax. And we all know who pays income tax and who doesn't pay income tax. With this method the people with money to spend will pay the lion's share of our taxes. The rich can not hide from it. I think Sales Tax is the fairest way to tax everyone. The poor who can not afford a lot of taxes will not have to pay for the basics of life like housing and food. But everyone will have to pay beyond that if they spend money.


Before you complain, remember, this is not a business expense. You just collect the tax for our state, pass it on to the comptroller and be glad you do not have match it or to pay an Income Tax on top of Sales Tax.

[Breezy]

Thanks Micwaywal.
The only thing I got from them was a paper saying that I needed to file. But oh well if it is as difficult to read as you said then I wouldn't have lol.
I will keep the # handy and remember what all you said.
But now tell me this. If I was to sell and Image that I took in Alaska to someone in say California then would I still charge the tax lol? I know I am getting difficult lol.
thanks again for all of the help

[Breezy]

Yeah I know about the state tax since this is the first state we have lived in with out it. But it is much simpler with state income tax lol.
I just think it sucks that we charge it for out of state buyers that is what I think sucks about it.

[MicWayWal]

Originally Posted by Breezy

But now tell me this. If I was to sell and Image that I took in Alaska to someone in say California then would I still charge the tax lol? I know I am getting difficult lol.
thanks again for all of the help

I don't think as you descriped it you would have to collect sales tax. But to be sure, call them from a phone they don't know is yours and ask them.

It sounds like a wedding I did for a customer who lived in Ohio about 4 years ago. I went to Ohio to photograph the wedding and delivered the pictures to them in Ohio. I was told then that I did not owe Sales Tax.

[Breezy]

ok thanks, I will call.