Freelance artists and Tax

!mesononso Jun 18, 2012

I know it's a stupid question but are freelance artists required to pay tax?

If yes then are you required to pay tax for "all" artworks you sell or just the ones you sell to a company. For example, if a Deviantart member were to commission me would I have to put some of the money away for tax?

Thanks all!

You can no longer comment on this thread as it was closed due to no activity for a month.

Devious Comments

~FriendlyHand Jun 18, 2012

Hi,
You can find all of the information at irs.gov:

As LittleSardines said, I think anyone (in the United States) who earns over $2000 in freelance pay (you might want to double check the dollar amount) has make income tax payments.

The tricky part is that freelancer are expected to make quarterly estimated income tax payments: [link] That means you have to guess how much you will make for the year and pay 1/4 of your taxes (based on your estimation) in April, June, September and January. It's not as difficult as it sounds.

If your estimate was inaccurate, simply adjust the next payment accordingly. April of each year is when you really calculate everything and file your main tax forms as usual. When April rolls around, you may owe more or you may get a refund depending on how much you have sent.

-FH

!mesononso Jun 21, 2012

You're right that sounds very difficult; I hope when it comes time to pay tax I won't be so overwhelmed by the process.

;

Very helpful. thank you!

=LittleSardines Jun 18, 2012 Professional Filmographer

It depends on how much money you make and where you live. I know for the US it's if you make more than $2,000 (or something like that) you'll have to pay taxes on it, but if you make less then you don't have to claim it. =/
The laws are pretty straight forward and not hard to look up - so I'd do a little digging on it rather than just relying on what people on deviantART say.

!mesononso Jun 21, 2012

ahhh I see. Thank you for that. I live in Australia so I'll definitely have to research what it is here but that sounds about right. Thank you!

=LittleSardines Jun 21, 2012 Professional Filmographer

Welcome!

Details

Statistics

Freelance artists and Tax

Devious Comments

The Journal Portal

Polls

What is your preferred drawing software?

deviantART [dee·vee·un'nt·ART]

Keep in Touch!

Deviousness

Add Media

Style