when you do a contracting job for a company say $5000.00 . are you supposed to charge them tax? someone i know said i should be charging them tax since i have to pay taxes on that money.
2007-09-05 08:51:06 · 5 answers · asked by allenshaunna 2 in Business & Finance ➔ Taxes ➔ United States
Nope, you can't charge them tax. If you contracted with them for $5,000, that's all you can charge them. You should have built into your quote to them all of your costs (including income taxes that you have to pay) + your profit margin.
The only thing you could maybe charge them would be sales tax on materials that you had to buy, but that should already be in the quote to them. If you quoted them a flat price then that's all you can charge them. If you quoted them "time plus materials" then you can charge them sales tax for the materials that you bought, but should give them the receipts to back up the materials charge from you + sales tax.
2007-09-05 09:00:12 · answer #1 · answered by Anonymous · 0⤊ 1⤋
Whether you have to charge sales tax depends on your state laws - each state makes its own rules.
2007-09-05 16:00:00 · answer #2 · answered by Judy 7 · 1⤊ 0⤋
No. You can only charge tax on materials, not labor. You pay taxes because it's your income tax. Everyone pays income taxes.
2007-09-05 15:55:41 · answer #3 · answered by Mrs Apple 6 · 0⤊ 1⤋
sorry but sales tax is collected on items sold, not services.
2007-09-05 16:30:16 · answer #4 · answered by goldenboyblue 3 · 0⤊ 0⤋
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2007-09-06 11:41:18 · answer #5 · answered by Anonymous · 0⤊ 0⤋