I recently found a place to display my photos, I put up eight prints with my name and number. I did this before I talked to my wife about it and she imformed me about some things that might put off my selling prints. First of all my girls are going to colledge in a couple years so our income depends on how much we make in order for them to get good rates on student loans. Thats a problem. Not that I will make that much. I have been excited because many people have looked at them already. There is an interest there. So here is my question. How can I sell my prints and still come out OK with the additional income? Since I have not done this before I have no idea where to go. I figured I could save the receipts on the cost of film ,prints and frames which would show what I spent out before I sold the prints, My wife was upset because she said she has worked less hours in order for us to stay below the income guide line for sudent loans. I feel like I am at the wall here. I have looked forward to doing this for sometime now, but it looks like my timing is not good. I was so much looking forward to doing our Art day downtown next summer, but this changes everything. I can sell my prints for the cost I have in them, but that defeats the goal I had, This is just a hobby for me, but I may have a shot at makeing some money too. It might not happen. How have some of you handled this situation? Is there a way to keep this a hobby and sell a few prints without it becomeing a small bussiness where you have to have a tax number? I never though of these things before now. I have sold a few prints before to friends, but at my cost. I hope I haven't confused anyone here, but would like some insight on where to go from here and stay out of trouble with the IRS. I am only truely interested in sharing my prints with those you enjoy them, but I have to be honest if I make some money along the way that would be alright also. Monte Johnson.
Monte, my suggestion would be to go talk to someone at H&R Block Premium. They should be able to tell you everything you need to know about student loan income limits, taxes, tax numbers, etc. in your state. I know it varies a lot. I never had to worry about a tax number in Arizona, but in Tennessee tax numbers are required for just about everything. On the other hand, Tennessee has no state income tax. Anyway, go talk to a pro!
I will talk to someone. I have a friend who is a tax consultant so I will tallk to him. I can see for me there are a lot of things to consider here. Monte Johnson.
How can I sell my prints and still come out OK with the additional income? Since I have not done this before I have no idea where to go.
Speak to an accountant. Additionally you will have to register for a sales tax license in the state you are marketing your photos, even if it's not a full time occupation.
In Iowa you do have to have a tax number. I just have to get my stuff together and set down with an accountant. Monte Johnson.
you cannot claim "business expense" for money spent on a hobby, therefore, you should not have to claim money made from a hobby.
Nice thought but "shouldn't" is not a word in any tax man's vocabulary.
You can do some things: 1) load up on your supplies in December and prepay other costs before year end, to increase your (accounted for) costs and expenses for the year; 2)put off collecting some fees til after the 1st of the year; 3) don't forget "invisible" costs like mileage; 4) If your really making money, put the non attending child on the payroll-putting the attending child on the payroll defeats the purpose.