Self employed artist

[Rileymkerr]

Is an 8822 form the correct form for me to file as a self employed artist. Also if my wife and I file together but she doesn't file quarterly how do we handle that? 

[RSUMan]

Form 8822 is used to notify the IRS of change of address.

If you and your wife have been filing a joint return, I do not believe you need to file an 8822 unless you have moved.

The revenue and expenses that you earn from your artwork will be reported on Schedule C which will be part of the Form 1040 that you and your wife file.

You will need to keep track of your profit (best practice is to keep track monthly) and make estimated tax payments.

Remember, the Self-Employment Tax (the social security and Medicare taxes on your art work profit) is 15.3% of your profit.

[Rileymkerr]

Thank you! Sorry I got my forms confused I do need to fill out an 8822 because we have moved, what I meant to ask was if a 1099 is right for me as well? Or is it just the 1040? And do I still need to file that by September 15th, or do I wait till she is filling? Thank you so much

[K M W]

Hi, Rileymkerr

To pay your taxes as a freelance artist, you need to fill in Schedule C on your tax return. You also have to make sure that you pay your self-employment tax, which is roughly 15% of your net self employment income, and is computed on the tax return as part of your overall tax liability. When doing your taxes, ensure that you report all income you make, even if you do not receive a 1099-MISC or a 1099-NEC.

Your question referenced Form 8822 - but form 8822 is used to notify the IRS of a change of mailing address. As such, it has nothing to do with self-employment income or expenses.

I am wondering if you meant to refer to Form 8832, Entity Classification Election. Form 8832 is used for an eligible entity to elect how it will be classified for federal tax purposes, as a corporation, a partnership, or an entity disregarded as separate from its owner.  Under the default rules, if your business is a single member LLC, your business is defaulted to be a disregarded entity - in other words, the income and expenses from the LLC will be reported on your individual tax return, on Schedule C.  However, you could submit Form 8832 to elect to be treated differently for tax purposes, such as being taxed as a corporation instead. 

With regards to your spouse, if you are filing a joint return, then all of your income (including your self employment income) and all of her income will all be reported on the joint tax return. To the extent that you/your business makes quarterly estimated tax payments, those payments will show up on the joint tax return as payments against the joint tax liability.

[RSUMan]

You and your wife will follow a Form 1040 for calendar year 2023; not a Form 1099.

Form 1099 is an information return used by folks who make payments above certain amounts to others; in other words, it is information sent to IRS so IRS can track if those amounts get reported.

You may need to make an estimated tax payment on September 15 depending on how your profit position looks.

[Rileymkerr]

How do I receive a 1099-MISC or 1099-NEC and what are the qualifications for those? 

So I continue to file 1099's quarterly and then we file together annually when hers is due (she has a W2)? 

And how do we file a joint return? 

Thank you 

[Rileymkerr]

Thank you! Is there a standard way to make an estimated tax payment? or a form? 

[JandKit]

Hi Riley,

The 1099s are issued to you by whom ever you have done work for. If you are self-employed and collect your own income. you will not receive either form. Just keep totals of all the cash received and post the full amount on your Schedule C when filing your taxes.

Filing jointly is indicated on the 1040 page 1. Just insure that you check the box that says Married Filing Jointly at the very top left of the first page!

Good lick to you!

[K M W]

You can make quarterly estimated payments by mailing a check to the IRS with Form 1040-ES, or by going directly to the IRS website and making an electronic payment.

You can find the 2023 Form 1040-ES here:  IRS form 1040ES 

If you wanted to pay electronically, just go to the IRS website at www.irs.gov and click to "Make a Payment". Follow the prompts and make sure to indicate the payment is for 2023 Estimated Tax Payments.

[Rileymkerr]

Thank you!