State Tax Question

[CobyPhoto]

Originally Posted by brad

Dividends? LOL I think you have me confused with a business that makes a profit.

But yea, I do get double taxed regardless... but that's a political/tax law thread that I won't get into.

LMAO...I didn't say you made a profit! Just IF you do, you are taxed on it.

CJ

[Serenity]

So I didn't even need to apply for a Tax certificate? I knew I shouldn't have done that. I'm just part time for now. I am so confused at this point I could just sit here and cry.

I work out of my home just whenever I have shoots scheduled indoors. I guess it doesn't hurt if I don't have any profit then I don't have to pay in anything. I honestly could not find help on this, not without having called and paid money out to a CPA trying to figure it all out. I don't have that kind of cash just sitting around!

[CobyPhoto]

Originally Posted by Serenity

So I didn't even need to apply for a Tax certificate? I knew I shouldn't have done that. I'm just part time for now. I am so confused at this point I could just sit here and cry.

I work out of my home just whenever I have shoots scheduled indoors. I guess it doesn't hurt if I don't have any profit then I don't have to pay in anything. I honestly could not find help on this, not without having called and paid money out to a CPA trying to figure it all out. I don't have that kind of cash just sitting around!

Jalissa,

YES, you must have a Sales Tax Certificate and YES you must collect it on ANY and all sales, regardless if you make profit or not. IF you took money for work that you did (Shoots, prints etc.) you SHOULD have collected sales tax on those sales. If you did not, you are still required to send the State a percentage (most likely 8.25%) as sales tax that you should have collected.

1. First question to answer: Did you take money for your photography work? If you answer YES, you owe sales tax to the State Comptrollers office. If you answer NO, you still have to file, just file with No tax due.

2. Next, How much was your Sales for January, February and March 2008?

Lastly, Don't panic. As long as you pay your sales tax, or file no taxes due, you will be fine.

If you can't find any help getting your State Sales Tax filed, check your PM's and call the number provided and I will help you understand your obligations and how to file. It isn't hard.

CJ

[Serenity]

THank you sooooo very very very much!

1. I do charge 8.25% I started charging that this year since I am official with the business. I just set up my bank accounts I have a primary checking and a secondary for taxes so I can keep all that separate and don't accidently spend it.

I haven't had any paid jobs yet this year I've been doing just free shoots for people mainly with close friends and family to help build my portfolio. So when I go to file in April I will file no sales tax. But I do have a wedding scheduled for end of April which will fall on second quarter, and several jobs following after that so I may need help figuring that out at that point.

Okay I feel better thanks for setting all that straight. I just have this recurring nightmere and I'm going to be auited hundreds of dollars for some really stupid mistake. All I want to do is take photos it's my passion, why it has to get so complicated I will never know. I guess we can thank Texas for there wild laws.

So it sounds like I'm on the right road doing the right thing so far.

Thanks CJ

~Serenity~

[Michael Lyons]

Great info as always Coby!

[sbug_adam]

Coby, on a side note, would it be beneficial for me to create a separate bank account for my photography work?

[Michael Lyons]

yes

[CobyPhoto]

Originally Posted by sbug_adam

Coby, on a side note, would it be beneficial for me to create a separate bank account for my photography work?

Absolutely, YES. It makes record keeping and taxes much easy in the end. Good record keeping is a must.

Coby

Thank ML, good answer!