How much do artists get taxed?

ArkiStan · 10-26-2009, 08:06 PM

Anybody know how much artists (fine art, photographers, furniture makers, craftsmen, etc) get taxed for selling their creations? What if I have a day job as a regular salary man and sell artwork on the side for some extra cash? Will I get taxed differently for the money I made through the two different methods?

Or does "gross income" encompass all types of income whether it be from a service or selling of goods?

ray · 10-27-2009, 12:24 AM

I guess it depends on whether you are acting as a Sole Proprietor, in which case you would add it to your income on your personal tax return, or if you were selling things under an incorporated organization (C-corp or LLC).

I am assuming you're just talking sole proprietorship, in which case you can read up on it here:

http://www.sba.gov/smallbusinessplan...OWNERSHIP.html

clutchy · 10-28-2009, 05:24 PM

you'll basically get smacked with self employment tax which is just FICA and medicare in addition to the tax you'll pay on the income.

just make sure to do a schedule C and track your expenses so you can reduce your income to zero or less than $400 and you avoid the SE tax.

GL

let me know if you have other specific questions... i do taxes for a living

guiseppewv · 10-29-2009, 01:05 PM

Quote:

Originally Posted by clutchy

let me know if you have other specific questions... i do taxes for a living

How can I legally avoid paying all taxes (i.e. I would pay no taxes at all) without lowering my gross income?

Chgoman · 10-29-2009, 01:22 PM

Donate it all to charity

guiseppewv · 10-29-2009, 03:21 PM

I would still have to pay FICA and sales tax. Plus there is a cap on how much you can write off before AMT hits you.

zippyjuan · 10-29-2009, 05:01 PM

If it is not a major portion of your income- such as selling the occasional piece- then it is a hobby. They want you to report the income (if you were paid less than $600 it may not have been reported- they are required to report anything over that amount). You can deduct hobby expenses up to the income from the hobby (it is possible to deduct more if you declare it a business) and claim a loss (as I remember you can claim a loss two out of three years and still be consider it business).

A bit more info:
http://www.ehow.com/how_2183916_hobb...by-income.html

ArkiStan · 10-29-2009, 06:57 PM

Quote:

Originally Posted by zippyjuan

If it is not a major portion of your income- such as selling the occasional piece- then it is a hobby. They want you to report the income (if you were paid less than $600 it may not have been reported- they are required to report anything over that amount). You can deduct hobby expenses up to the income from the hobby (it is possible to deduct more if you declare it a business) and claim a loss (as I remember you can claim a loss two out of three years and still be consider it business).

A bit more info:
http://www.ehow.com/how_2183916_hobb...by-income.html

Wow, I didn't know that at all. Good to know. Thanks!

ArkiStan · 10-29-2009, 06:59 PM

Quote:

Originally Posted by clutchy

you'll basically get smacked with self employment tax which is just FICA and medicare in addition to the tax you'll pay on the income.

just make sure to do a schedule C and track your expenses so you can reduce your income to zero or less than $400 and you avoid the SE tax.

GL

let me know if you have other specific questions... i do taxes for a living

Great info. Thanks. I will remember to contact you when I actually start generating extra income from this new hobby of mine.

clutchy · 10-29-2009, 11:05 PM

Quote:

Originally Posted by guiseppewv

How can I legally avoid paying all taxes (i.e. I would pay no taxes at all) without lowering my gross income?

shh.... pm me and i'll tell you the secret

10-26-2009, 08:06 PM	#1
ArkiStan Admiral Join Date: May 2000 Location: Recession Central Posts: 5,779	How much do artists get taxed? Anybody know how much artists (fine art, photographers, furniture makers, craftsmen, etc) get taxed for selling their creations? What if I have a day job as a regular salary man and sell artwork on the side for some extra cash? Will I get taxed differently for the money I made through the two different methods? Or does "gross income" encompass all types of income whether it be from a service or selling of goods? __________________ Please keep sigs 25kb or smaller. Last edited by ArkiStan : 10-26-2009 at 08:52 PM.

10-28-2009, 05:24 PM	#3
clutchy Rear Admiral Lower Half Join Date: Dec 2000 Location: Yucaipa, CA Posts: 2,748	you'll basically get smacked with self employment tax which is just FICA and medicare in addition to the tax you'll pay on the income. just make sure to do a schedule C and track your expenses so you can reduce your income to zero or less than $400 and you avoid the SE tax. GL let me know if you have other specific questions... i do taxes for a living __________________ LK was treated unfairly thanks X

10-29-2009, 05:01 PM	#7
zippyjuan Picture of the Day Guru Join Date: Oct 2002 Location: Sunny San Diego Posts: 8,756	If it is not a major portion of your income- such as selling the occasional piece- then it is a hobby. They want you to report the income (if you were paid less than $600 it may not have been reported- they are required to report anything over that amount). You can deduct hobby expenses up to the income from the hobby (it is possible to deduct more if you declare it a business) and claim a loss (as I remember you can claim a loss two out of three years and still be consider it business). A bit more info: http://www.ehow.com/how_2183916_hobb...by-income.html __________________ I add new pictures to my photo gallery pretty regularly. You can see them here if you are interested: http://www.pbase.com/jeffryz

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10-27-2009, 12:24 AM	#2
ray captain awesome Join Date: Jan 2003 Posts: 7,006	I guess it depends on whether you are acting as a Sole Proprietor, in which case you would add it to your income on your personal tax return, or if you were selling things under an incorporated organization (C-corp or LLC). I am assuming you're just talking sole proprietorship, in which case you can read up on it here: http://www.sba.gov/smallbusinessplan...OWNERSHIP.html

10-29-2009, 01:22 PM	#5
Chgoman Lieutenant Commander Join Date: Apr 2002 Location: Mission Viejo, CA Posts: 614	Donate it all to charity

10-29-2009, 03:21 PM	#6
guiseppewv Admiral Join Date: Nov 2001 Location: East coast Posts: 7,000	I would still have to pay FICA and sales tax. Plus there is a cap on how much you can write off before AMT hits you.

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