WetCanvas
Home Member Services Content Areas Tools Info Center WC Partners Shop Help
Channels:
Search for:
in:

Welcome to the WetCanvas forums. You are currently viewing our boards as a guest which gives you limited access to view most discussions, articles and access our other FREE features. By joining our free community you will have access to post topics, communicate privately with other members (PM), respond to polls, upload your own photos and access many other special features. Registration is fast, simple and absolutely free so please, join our community today!

If you have any problems with the registration process or your account login, please visit our help center.

Go Back   WetCanvas > The Art Business Center > General Art Business
User Name
Password
Register Mark Forums Read

Salute to our Partners
WC! Sponsors

Our Sponsors
Reply  
 
Thread Tools Display Modes
  #1   Report Bad Post  
Old 11-22-2018, 07:40 AM
AGunterhaus's Avatar
AGunterhaus AGunterhaus is offline
New Member
Greensboro, NC
 
Join Date: Mar 2018
Posts: 47
 
Hails from United States
Question Taxes 2018

Iím official with the IRS and my state as a sole proprietor since earlier this year! Yay! But I donít know how to file my taxes. I have quickbook self employed but it doesnít seem to be tallying it as I was under the impression it would. I have not made much since this is my starting year, under 3k, but I want to do this right and by the book, down to the final penny.

Iím married, have a dependent, filing jointly usually. I know Iím supposed to file quarterly for my business..which I havenít yet...but do I also file jointly as a self employed person with m husband? Wonít I get doubly taxed? Help! Needing some answers and Iím hoping a seasoned professional can help light the way for us!!
Thanks in advance!
__________________
www.Gunterhaus.com
INSTAGRAM @gunterhaus_art_studio
FACEBOOK www.facebook.com/GunterhausArt/
Reply With Quote
  #2   Report Bad Post  
Old 11-23-2018, 03:55 AM
AGunterhaus's Avatar
AGunterhaus AGunterhaus is offline
New Member
Greensboro, NC
 
Join Date: Mar 2018
Posts: 47
 
Hails from United States
Re: Taxes 2018

I'm open to any suggestions at all.
__________________
www.Gunterhaus.com
INSTAGRAM @gunterhaus_art_studio
FACEBOOK www.facebook.com/GunterhausArt/
Reply With Quote
  #3   Report Bad Post  
Old 11-23-2018, 12:28 PM
~JMW~'s Avatar
~JMW~ ~JMW~ is offline
A WetCanvas! Patron Saint
Oregon
 
Join Date: Oct 2004
Posts: 3,258
 
Hails from United States
Re: Taxes 2018

All I can suggest is try the site search , maybe some info is in a past post/thread..
Or web search for tax info.
__________________
JMW's Paintings
Improve your landscapes- http://www.wetcanvas.com/forums/forumdisplay.php?f=522
Composition Tips http://www.wetcanvas.com/Articles/Jo...120/index.html
Reply With Quote
  #4   Report Bad Post  
Old 11-23-2018, 04:51 PM
contumacious contumacious is offline
Lord of the Arts
 
Join Date: Dec 2016
Posts: 2,315
 
Re: Taxes 2018

Schedule C is pretty much all you need to add to what you are filing already. You can submit it with your 1040, joint or individual filing.

With gross sales around $3k it is unlikely you would need to file quarterly. Even if the entire $3k was clear profit, your tax would only be $600 if you are in a 20% tax bracket not counting expenses claimed on Sched. C / Sched A etc. If you do file quarterly, all that means is you are giving them an estimate of what your tax liability will be by the end of the year and paying some of it up front to avoid penalties and interest later. You would enter the quarterly payments along with any tax witholding for you or your spouse from other employment sources on your final return at the end of the year. Talking federal return, not state.

https://quickbooks.intuit.com/r/taxe...arterly-taxes/
In general, individuals who expect to owe less than $1,000 in taxes, after subtracting federal income tax, are exempt from making quarterly payments. Similarly, if your federal tax withholdings comprise 90% of the tax you owe for the year, you can most likely refrain from making payments each quarter.

Last edited by contumacious : 11-23-2018 at 04:55 PM.
Reply With Quote
  #5   Report Bad Post  
Old 11-24-2018, 08:26 PM
CarlyHardy's Avatar
CarlyHardy CarlyHardy is offline
A WC! Legend
Rabun Gap, GA
 
Join Date: Aug 2004
Posts: 10,218
 
Hails from United States
Re: Taxes 2018

I've done a business for years with my art and with other ventures without doing any quarterly reporting. Schedule C has a complete pdf online which will tell you how to fill out the report. It's actually easier than Quick books to me! It's added to your joint 1040 as stated above in contumacious' post. State tax forms are filed after you finish your federal returns.And if you show a loss, that's legal too which will reduce your federal taxes.

And be sure to fill out your self employment form for social security too.

Last edited by CarlyHardy : 11-24-2018 at 08:27 PM. Reason: more info
Reply With Quote
  #6   Report Bad Post  
Old 11-27-2018, 01:19 PM
AGunterhaus's Avatar
AGunterhaus AGunterhaus is offline
New Member
Greensboro, NC
 
Join Date: Mar 2018
Posts: 47
 
Hails from United States
Re: Taxes 2018

I could hug you guys!!! Thank you, this is just what I was looking for! *jumps for joy*
Does Schedule work for State taxes too? And yes, this is my first year making a go of it, and I don't expect to make any "profit" the first three years for sure while I build my business and presence, but I do want to make sure I do this the right way. It'll only help me in the future!
__________________
www.Gunterhaus.com
INSTAGRAM @gunterhaus_art_studio
FACEBOOK www.facebook.com/GunterhausArt/
Reply With Quote
  #7   Report Bad Post  
Old 11-27-2018, 01:24 PM
AGunterhaus's Avatar
AGunterhaus AGunterhaus is offline
New Member
Greensboro, NC
 
Join Date: Mar 2018
Posts: 47
 
Hails from United States
Re: Taxes 2018

Quote:
Originally Posted by CarlyHardy
And be sure to fill out your self employment form for social security too.

Ah, right...I didn't think of that one yet. Thank you!
__________________
www.Gunterhaus.com
INSTAGRAM @gunterhaus_art_studio
FACEBOOK www.facebook.com/GunterhausArt/
Reply With Quote
  #8   Report Bad Post  
Old 11-27-2018, 01:49 PM
contumacious contumacious is offline
Lord of the Arts
 
Join Date: Dec 2016
Posts: 2,315
 
Re: Taxes 2018

Quote:
Originally Posted by AGunterhaus
I could hug you guys!!! Thank you, this is just what I was looking for! *jumps for joy*
Does Schedule work for State taxes too? And yes, this is my first year making a go of it, and I don't expect to make any "profit" the first three years for sure while I build my business and presence, but I do want to make sure I do this the right way. It'll only help me in the future!

Every state tax return is different, but most of them base their taxes off the Federal Forms. I have never seen a state form that had different forms that replaced the Schedule C or the itemized deduction pages.

Quote:
Originally Posted by AGunterhaus
Ah, right...I didn't think of that one yet. Thank you!

I don't know if this is still an option, but back when I was in school, you could opt out of social security payments if you were a student. I did this for as many years as I could. I also put 1 dependent on the form for my "regular" jobs rather than the actual number of dependents, so I would end up owing the IRS money at the end of the year rather than them owing me. I needed every dime I could get my hands on back then. In my personal finance class in school the professor called those who liked getting a tax refund rather than owing the IRS, the "dumb money" crowd. Today I think the IRS makes it very difficult for you to continually owe them larger amounts each year, but if you think about it, it is YOUR money that they are taking from you before you actually owe it to them! What would you say if your mortgage company said you had to pay for next years October payment NOW rather than when it was due? Since my income was low, I never did have to pay any penalties. If I could opt out of paying Social Security payments today, and choose zero withholding of income tax, I would absolutely take advantage of it. Of course the more you pay into Social Security the more you will get later, but I can make a lot more money on my own investments than the expected returns on Social Security, plus there is a limit to how much they will pay you when you retire, and it isn't much for some folks compared to how much they made when working.

Last edited by contumacious : 11-27-2018 at 02:00 PM.
Reply With Quote
  #9   Report Bad Post  
Old 11-27-2018, 04:14 PM
RobinZ's Avatar
RobinZ RobinZ is offline
A WC! Legend
Almost Philadelphia
 
Join Date: Jun 2002
Posts: 17,082
 
Hails from United States
Re: Taxes 2018

I have quick books through Etsy and it's super easy. I basically add my supplies costs, my studio space write off and mileage.

I had some confusion the first year and QBs customer service was great, they dumbed it down for me.

And super easy to do my taxes.
Reply With Quote
  #10   Report Bad Post  
Old 11-28-2018, 11:02 AM
Use Her Name's Avatar
Use Her Name Use Her Name is online now
A WetCanvas! Patron Saint
La tierra del encanto
 
Join Date: Feb 2006
Posts: 3,457
 
Hails from United States
Re: Taxes 2018

Isn't there usually a small business center in various towns where a person can get free advice?
__________________
Katy
Making art since 1973-ish
Blog under reconstruction
Reply With Quote
  #11   Report Bad Post  
Old 02-10-2019, 06:14 PM
AGunterhaus's Avatar
AGunterhaus AGunterhaus is offline
New Member
Greensboro, NC
 
Join Date: Mar 2018
Posts: 47
 
Hails from United States
Re: Taxes 2018

Doing our taxes now, you all have been so helpful! Thank you so much!
__________________
www.Gunterhaus.com
INSTAGRAM @gunterhaus_art_studio
FACEBOOK www.facebook.com/GunterhausArt/
Reply With Quote
  #12   Report Bad Post  
Old 02-10-2019, 06:14 PM
AGunterhaus's Avatar
AGunterhaus AGunterhaus is offline
New Member
Greensboro, NC
 
Join Date: Mar 2018
Posts: 47
 
Hails from United States
Re: Taxes 2018

Quote:
Originally Posted by RobinZ
I have quick books through Etsy and it's super easy. I basically add my supplies costs, my studio space write off and mileage.

I had some confusion the first year and QBs customer service was great, they dumbed it down for me.

And super easy to do my taxes.

Got the Quickbooks, thanks for the tip! And yes, through Etsy I only have to pay $5 a month. Yippie!
__________________
www.Gunterhaus.com
INSTAGRAM @gunterhaus_art_studio
FACEBOOK www.facebook.com/GunterhausArt/
Reply With Quote
  #13   Report Bad Post  
Old 02-11-2019, 03:31 AM
Harold Roth Harold Roth is online now
Enthusiast
Pawtucket, RI
 
Join Date: Sep 2013
Posts: 1,433
 
Hails from United States
Re: Taxes 2018

What contumacious says about it's mostly Schedule C, but don't forget Schedule SE, which is the self-employment tax, and then the schedule for deducting the business use of your home. IME, the real tax killer is the self-employment tax, which is around 15%. You can't opt out of self-employment tax unless you make $400 or less or you are a minister who belongs to a religion that rejects Social Security (like Amish).

If you don't pay quarterly or something along those lines, you usually have to pay a penalty, which is small. However, you can pay more often if it is easier. You can pay weekly, if you want.

I have used the book by Nolo called "Deduct It!" to learn how to do my own taxes for self-employment. They pointed out deductions I would not have thought of.

I have found it is important to buy everything with a card. That way, I have it all in my bank statements, every single purchase. I also go through all my Amazon purchases at the end of the year to sort out which ones were for my business.

You can declare a loss from your business for three years running before the IRS declares it a hobby. If you have a loss on your Schedule C, you can deduct it on your 1040.
Reply With Quote
  #14   Report Bad Post  
Old 02-12-2019, 08:04 PM
CarlyHardy's Avatar
CarlyHardy CarlyHardy is offline
A WC! Legend
Rabun Gap, GA
 
Join Date: Aug 2004
Posts: 10,218
 
Hails from United States
Re: Taxes 2018

Just a note on being declared a hobby business...

The general rule is that if you have not turned a profit in at least three of the prior five years, the IRS will categorize your business as a hobby.

Also, if you can show that you are actively trying to build you business, that will be taken into account if you wish to deny their claim. Keep all receipts for purchases and sales, etc. to prove your claim.
Reply With Quote

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump


All times are GMT -4. The time now is 09:33 AM.


© 2014 F+W All rights reserved.