I quit my job to stay at home with our first bub, but would like to bring in some extra cash as a piano teacher as I have the qualifications. Hubby works approx 40hrs a week on a casual wage. Would I have to declare my earnings to the Government or would this be classed as a hobby? Would I have to give the students reciepts? Any business advise at all would be helpfull as I don't want to get in to trouble with Centrelink (I receive a small parenting payment) or the ATO. Thankyou!
2007-03-09 11:01:51 · 4 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ Australia
you have a business here. You will have apply ABN, then you can invoice students.
your earning is also will have impact on your parenting payment from centrelink.
you will have to record all your earnings, as well as your outgoing. You then can claim your outgoing expenses.
Please contact ATO at your nearest to discuss. This is free.
2007-03-10 19:03:27 · answer #1 · answered by flower 2 · 1⤊ 0⤋
I don't know about other countries licenses and taxation rules, however in the USA if you don't report the income, rest assured that some parent will want to "write off" the expense as "educational costs" and if that family gets audited by the Government tax authority, then receipts must be produced and then it's traced to you and you will get audited for the income. So best to play by the rules, generally it's a very low amount for all the requirements and then you have no worries. Good luck! And congratulations on the new baby!
2007-03-09 11:08:38 · answer #2 · answered by Faerie loue 5 · 0⤊ 0⤋
It will be a business if you are charging for your services. You don't need to give receipts, but it still might be a good idea for both your records and theirs. The more professional you make your business the easier it will be to retain and attract more customers.
Check out the link below and see the instructions for Form 1040, Schedule C.
2007-03-09 11:11:46 · answer #3 · answered by Al 4 · 0⤊ 0⤋
You need to get a receipt for all your expenses, but, no you don't need to give receipts. You need to keep a record of all your earnings, either in a log book or on your computer. And, yes, you need to pay taxes on the money, even if it's done in your home.
2007-03-09 18:11:03 · answer #4 · answered by Neil 2 · 1⤊ 1⤋