Microstock Photography Forum - General > Newbie Discussion

Do I have to file Schedule C for income from microstock?

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digipro:
Question for contributors in the US.
When filing taxes to IRS is this a legal way -> form 1040 -> Schedule 1 (line 6 royalties) + Schedule E (income line 4 royalties)?
All my 1099MISC forms do say Royalties box 4.
I want to simplify things, and it seems like if I file Schedule C (profit and loss), it will require me to pay self-employment tax, and I can't think of any deductions that would lower my net income.

dbvirago:
I can't answer the first part of your question, but the Schedule C is where you will be able to declare all your expenses and deductions, like cameras, lenses, computer equipment, etc. I can't imagine you will be better off declaring all of the income with none of the deductions.

Uncle Pete:

--- Quote from: dbvirago on March 23, 2024, 18:47 ---I can't answer the first part of your question, but the Schedule C is where you will be able to declare all your expenses and deductions, like cameras, lenses, computer equipment, etc. I can't imagine you will be better off declaring all of the income with none of the deductions.

--- End quote ---

That's the way my accountant does it, Schedule C. But, make a note, cameras, lenses, computers, Etc. "equipment" is depreciated not deducted. Expenses, fuel, travel, lodging, supplies, are deductions.

Sean Locke Photography:
No, it is income and not what is considered “royalties”.  You will need to pay self employment tax.

spike:

--- Quote from: Sean Locke Photography on March 24, 2024, 15:53 ---No, it is income and not what is considered “royalties”.  You will need to pay self employment tax.

--- End quote ---

Depends. True if it's active and makes the majority of your income. If it's passive, then it's Schedule E, no self employment tax.

At least that's what my CPA said.

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