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  1. #1
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    minimum taxable income for a freelancer?

    I was wondering if there's a specific amount of money you need to make in order to have to get involved with tax returns, payments etc.

    (in U.S)

    Thanks


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  3. #2
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    I think it is 400 dollars now and no age limit. If you make money you are required by law to file a tax return, whether you have to pay taxes on that money is a separate issue. Failing to file can generate penalties, so you can find yourself in a situation where because you didn't file you now owe the IRS money where if you would have filed you would not have owed a thing. Yeah its a racket.

  4. #3
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    I didn't realize that there was a limit. I do know that, since I sell my paintings/prints in art fairs in Vermont, New Hampshire, Mass, and Connecticut, I still have to file my business taxes with those states... even if I didn't sell anything.

    Also, I have an EIN (although, I think that the social security number works, also). Some of the businesses where I sell my paintings require that I have proof of business, tax ID number, etc...

    Dougie

  5. #4
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    State law is different than Federal law, each state has its own laws and percentage for taxation.

  6. #5
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    What dpaint said. In WA State, you have to collect sales tax according to the tax code of the area the item was purchased in. So if you do shows, you HAVE to know the tax code (and therefore tax percent) of that specific location. Because tax codes are not tied to cities or zip codes, it's possible to cross the street and enter a different tax code.

    Talk about a nightmare.

  7. #6
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    Quote Originally Posted by kasia88 View Post
    I was wondering if there's a specific amount of money you need to make in order to have to get involved with tax returns, payments etc.

    (in U.S)

    Thanks
    state tax varies per state but any thing over $500 or more is taxable on the fed level if i remember right. you are paying taxes on all earning but you have itemize all so you can end up showing what you made on the art work made then the cost of making it and deduct that .. .. that what i did at one time end up getting back most of my cost then paying.. Now in Calif we have hobby taxes as well not sure how that works yet..

    CC

  8. #7
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    @twopounder: What makes it even worse is that there are city taxes that increase the standard sales tax. In Williston, Vermont, there's an additional 1% city tax, that increases the sales tax to 7%.

    Whenever I'm doing a show in a city (and never did one there before), I have to call the town offices to find out what their official sales tax is.

    Yeah, dealing with the various taxes and business requirements for each state is a pain. Plus, filing the paperwork to register the business with the state so that you can get your sales tax ID.

  9. #8
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    Yeah, we have the same thing here in WA. Our state sales tax is 8%, then cities add between 1% and 2%. Most of Seattle now carries a 10% sales tax. A couple areas are going to 10.5%.

  10. #9
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    Last I remembered it was around $900 but it does vary from state to state and what the Fed taxes you for vs state.

    In CA you need to file quarterly, not yearly

  11. #10
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    I checked fed reg and it is actually anything over $400
    this is from the IRS website
    To determine if you need to file a Federal Income Tax return for 2010 answer the following questions:

    Occasionally, individuals have one-time or infrequent financial transactions that may require them to file a Federal Income Tax return. Do any of the following examples apply to you?

    Did you have Federal taxes withheld from your pension and wages for this tax year and wish to get a refund back?
    Are you entitled to the Earned Income Tax Credit or did you receive Advance Earned Income Credit for this tax year?
    Were you self-employed with earnings of more than $400.00?

    Edit: I added a link to the direct page
    Last edited by dpaint; August 16th, 2011 at 05:58 PM.

  12. #11
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    "Everything must serve the idea. The means used to convey the idea should be the simplest and clear. Just what is required. No extra images. To me this is a universal principle of art. Saying as much as possible with a minimum of means."
    -John Huston, Director

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  14. #12
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    I was wondering about this for the UK...

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