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p4heels
Level 1

Photography Biz

I started a new photography business this year.  The local high school has hired me to take player photos of each of their teams.  I take the photos, edit them and then have packages printed that are ordered by the parents.  They pay via Paypal or Venmo.  I order the prints from a professional print shop and pay for the prints and sales tax.  How do I report this on my taxes.  The whole photography income thing is new to me.  I should also say that I am not paid by the school for any of this.  What I earn is just from the profit of taking photos and selling packages based on the orders.

5 Replies
John-H2021
Employee Tax Expert

Photography Biz

Hello,

 

This will be considered self-employed income and owning your own business. You will report it on a schedule C which is part of your tax return. You will report all incme you receive. some of this income may be reported on a 1099-K, 1099-NEC or 1099-MISC. You will also deduct all of your expenses associated with making this money, cost of prints, film, camera, other supplies, vehicle expenses traveling for the business and possibly a home office.

Here a few links with more information.

https://turbotax.intuit.com/tax-tips/self-employment-taxes/top-tax-deductions-for-photographers/L8wd...

https://turbotax.intuit.com/tax-tips/self-employment-taxes/beginners-tax-guide-for-the-self-employed...

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Bre151
Level 1

Photography Biz

Hi,

Do you have similar links for consulting and coaching businesses?

Thanks!

Bre

VolvoGirl
Level 15

Photography Biz

Some general info on self employment on Schedule C.......

You will need to keep good records. You may get a 1099NEC at the end of the year if someone pays you more than $600 but you need to report all your income no matter how small. You might want to use Quicken or QuickBooks to keep track of your income and expenses.

 

There is also QuickBooks Self Employment bundle you can check out which includes one Turbo Tax Online Self Employed return....
https://quickbooks.intuit.com/self-employed


When you are self employed you are in business for yourself and the person or company that pays you is your customer or client.

 

To report your self employment income you will fill out schedule C in your personal 1040 tax return and pay SE self employment Tax. You will need to use the Online Self Employed version or any Desktop program but the Desktop Home & Business version will have the most help.


Turbo Tax Beginners Tax Guide for the Self Employed
https://turbotax.intuit.com/tax-tips/self-employment-taxes/beginners-tax-guide-for-the-self-employed...


What is form 1099NEC?
https://turbotax.intuit.com/tax-tips/irs-tax-forms/what-is-form-1099-nec/L5fbwIFSn


Here is some IRS reading material……
IRS information on Self Employment
https://www.irs.gov/businesses/small-businesses-self-employed/self-employed-individuals-tax-center


Publication 334, Tax Guide for Small Business
https://www.irs.gov/pub/irs-pdf/p334.pdf


Publication 535 Business Expenses
https://www.irs.gov/pub/irs-pdf/p535.pdf

 

You pay Self Employment tax on $400 or more of net profit from self-employment in addition to any regular income tax. You pay 15.3% SE tax on 92.35% of your Net Profit greater than $400. The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare. So you get social security credit for it when you retire.

 

 

John-H2021
Employee Tax Expert

Photography Biz

Yes here is consulting https://turbotax.intuit.com/tax-tips/self-employment-taxes/top-tax-deductions-for-consultants/L59HmN... and Coaches https://turbotax.intuit.com/tax-tips/self-employment-taxes/common-tax-deductions-for-coaches/L74vxem...

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Laura_CPA
Employee Tax Expert

Photography Biz

Hi  p4heels, 

 

Hope you are having a good day 😊! Thank you for posting your question today, before we get started I would like you to take a look at your second sentence, you mentioned that the local high school HIRED you to take player photos. How did the school hire you as an independent contractor or as an employee? Did they have you fill out a Form W-9 Request for Taxpayer Identification Number and Certificate or a Form W-4 Employee's Withholding Certificate? These questions are to guide you clarify whether you are being treated as an independent contractor or an employee by the school that hired you for this gig.   

 

Next, if you are considered an independent contractor and your intention is to make a profit, you're then considered a Sole Proprietor.  What does that mean? It means that all the money collected via your PayPal and Venmo accounts will be considered gross receipts and the prints and sales tax you pay will be considered expenses, these are reported on Schedule C (which is part of your individual tax return - 1040). 

 

Please let us know if you have any further questions and have a wonderful time with your gig! 

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