Microstock Photography Forum - General > General Photography Discussion
Do you file taxes on your income from stock photography? (Honest)
ouatedeP:
--- Quote from: georgep7 on February 08, 2020, 05:14 ---
--- Quote from: ouatedeP on February 07, 2020, 09:37 ---
--- Quote from: georgep7 on February 06, 2020, 03:25 ---
--- Quote from: K46 on May 22, 2018, 14:28 ---Thank you all very much. Being a student, I've yet to pay taxes for the first time. I have a large portfolio of pictures that were ready for stock but I think I will wait until I settle down to avoid double taxation.
Most importantly, I hope everyone understands that this question was never meant in an offensive way, as made clear by my age, it's an honest one, I thank you for your replies!
--- End quote ---
There is a thershold that you have to reach to pay taxes (and a long jourhey to upload, tag and sell I guess...)
As a reference in my country is over 500 Euros. Below that you are covered not to report.
But of course everything e.g. Paypal to local bank transfers are monitored by tax office.
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interesting. so if you found a way to have many sources of revenue that only made 499 euros each, you wouldn't have to pay any tax?
Canada i have to declare all revenue from all sources, and tax determined that way
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My accountant said that i had to declare myself as freelancer by the first euro. When he realised that overall annual profits were below 500 euros he said that it was ok to file only payed work as an emploee i had done for the year.
For me it was critical as long as if a minimum $50 payout requires to be a freelancer, that means 250euros per month for insurance plus 500 euros tax advance (yup, next year pre-taxxing) plus around 45% taxes plus many other irrelevant expences e.g. for the chamber of commerce (75 per year IIRC from 2015).
Long story short, under 500 euros the tax officer don't mind except of course there are other reasons or indications for tax-avoidance or grey-income.
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interesting. when i started For me it was the opposite, being able to declare a free lancer allowed me to have a small business loss from my gear and use it against my other income.
which actually shows that it is totally different for every one, based on circumstances and tax environment.
qunamax:
Absolutely not, I'm not into funding corrupt and incompetent government's new Audis. It's not even regulated or enforced by law.
Strongly depends where you live.
trek:
--- Quote from: stockmarketer on February 08, 2020, 08:57 ---A few months ago I got sent a bill for $30,000 from the IRS for underreporting income in 2017. It's the whole paypal 1099 K problem where paypal and the agencies double report our income. What I learned is that in they eyes of the IRS, if paypal is going to report the income, then the agencies should NOT. But with no coordination between the agencies and paypal, the job is ours to explain what happened. The IRS initially told me to get a letter from every agency explaining they didnt pay me directly, which of course is impossible. Instead I had to write my own detailed letter of explanation with a TON of backing info. In the end, they cancelled the bill, and I'm left trying to figure out how to explain the situation in my 2019 return. Will probably report all the agency AND paypal 1099s with an entry subtracting out the agency 1099 total, along with a note explaining it is double reporting of the same income. Still not positive it is the right approach. Anyone else deal with this in a different way?
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My understanding is that paypal issues a 1099K for people who have 200 transactions "and" $20,000 in earnings. Keeping the transaction number below 200 should fix the problem.
stockmarketer:
Yeah, I tried to limit my payment requests and withdrawals in the last few months of the year. Hoping I stayed under the threshold this time.
marthamarks:
--- Quote from: trek on February 08, 2020, 12:04 ---My understanding is that paypal issues a 1099K for people who have 200 transactions "and" $20,000 in earnings. Keeping the transaction number below 200 should fix the problem.
--- End quote ---
Whew, what a relief! No worries for me in that regard. ::)
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