just a question, i'm 19 so i'm not really familiar with taxes...if you are accepting payments from people on an item thats electronic delivery, for example like webdesign layouts etc...if you are not charging people taxes on it, it's just 1 set price, do i have to pay taxes on it?
2007-07-16 08:39:17 · 4 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
If you are collecting money from anyone for labor or goods, including webdesigns, you owe income tax on the amount you collect. At years end, you may receive 1099 forms from some of the people you have sold to, and copies of that information is also reported to the I.R.S. You can deduct expenses you have in relation to the labor or item.
2007-07-16 08:50:32 · answer #1 · answered by oakhill 6 · 0⤊ 0⤋
It sounds like you might be confusing sales taxes with income taxes.
Your income from these jobs would need to be reported and you'd pay federal income tax on it, if you make over $400 a year. You might also owe income tax to your state and municipality - that depends on where you live.
Sales tax is something that, depending on your state, you might be required to charge your customers and remit to the state.
It might be a good idea to talk to a CPA to find out exactly what you are required to do.
2007-07-16 14:31:11 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
You are confusing Sales Taxes with Income Taxes. They have nothing to do with each other.
You will Income Taxes and Self-Employment Taxes on your net income from your business. As you admit to not being familiar with taxes, it may be time to see a professional.
2007-07-16 08:55:30 · answer #3 · answered by Wayne Z 7 · 0⤊ 0⤋
All income is taxable income, less (minus) deductions. Sales taxes and income taxes are two different breeds. You may be liable for both, you'll want to check with a tax attorney or accountant.
2007-07-16 08:46:45 · answer #4 · answered by Mi Atheist Girl 4 · 0⤊ 0⤋