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[STATUS] Busy Season
8 years ago
It's that time of year again. T_T
Going on partial art hiatus, as I do every year.
First-job isn't too bad right now. I'm only doing 45 or so hours, but it will get up there.
Also, my parents are coming for New Years, for 10 days or so. I will be busy entertaining them when I am not at work and it may take a few days to get my life back on schedule after they leave.
I will still be checking messages via phone every day. However, I may not reply unless it is an emergency.
All art projects are still on schedule. This is a planned hiatus and has been taken into account.
USA Artists! Here's your yearly reminder to do your taxes.
1) If you made more than $400 from art, you owe self employment tax.
2) If you paid a helper more than $200, you are required to issue a 1099MISC.
3) The due date is April 17 (April 15 is a weekend.) to get your payments in, even with an extension.
4) You will not owe penalty if you pay in at least 90% of last year's tax.
5) The statute of limitations is 3 years from the date of filing. Please file, even if you didn't make enough money to owe tax. It protects you from future audits.
6) You can't just write off random crap as business expenses.
7) Remember to file income tax in the states where you sold at conventions. The sales tax you pay before you leave and an income tax return are not the same thing.
8) Colorado has a resident sales tax refund that you can get back if you file.
9) Don't use TurboTax. Go to the IRS website. Download the form. Print it out. Write on it. Mail it in. There are instructions. I promise it's not that hard.
Going on partial art hiatus, as I do every year.
First-job isn't too bad right now. I'm only doing 45 or so hours, but it will get up there.
Also, my parents are coming for New Years, for 10 days or so. I will be busy entertaining them when I am not at work and it may take a few days to get my life back on schedule after they leave.
I will still be checking messages via phone every day. However, I may not reply unless it is an emergency.
All art projects are still on schedule. This is a planned hiatus and has been taken into account.
USA Artists! Here's your yearly reminder to do your taxes.
1) If you made more than $400 from art, you owe self employment tax.
2) If you paid a helper more than $200, you are required to issue a 1099MISC.
3) The due date is April 17 (April 15 is a weekend.) to get your payments in, even with an extension.
4) You will not owe penalty if you pay in at least 90% of last year's tax.
5) The statute of limitations is 3 years from the date of filing. Please file, even if you didn't make enough money to owe tax. It protects you from future audits.
6) You can't just write off random crap as business expenses.
7) Remember to file income tax in the states where you sold at conventions. The sales tax you pay before you leave and an income tax return are not the same thing.
8) Colorado has a resident sales tax refund that you can get back if you file.
9) Don't use TurboTax. Go to the IRS website. Download the form. Print it out. Write on it. Mail it in. There are instructions. I promise it's not that hard.
1) If you made most of your money from digital art, can you still count traditional art supplies as business expenses?
2) If you sell at a con, can you count the table fee, hotel room, travel, etc. as expenses? Or only some of those?
3) If I incurred a bunch of expenses to start but don't make $400 in my first year, can I count those expenses in the year that I finally make $400? Or only in the year that the expenses were incurred?
4) If my total income from all sources is lower than $10,000.00 for the entire calendar year, but I made more than $400 doing art, would I still want to keep track of business expenses for the art or does it even matter at that point?
2) Yes, but only half of meals and entertainment, and you can't take gas cost if you do standard miles.
3) Expenses only count for the year incurred, but you can carry forward an NOL.
4) SE tax is calculated separately. You will still owe.
This is generic information and should not be taken as tax advisement under circa 230 and should not be used for tax avoidance.