I have a question to all the pros out there who are working as their own business. My tax guy was super NOT helpful (he told me - I don't know, can you ask another professional what they do?!) and I don't know who else to ask in person. What do I charge tax on? Only physical prints? Everything tangible?

Okay - this might sound like a dumb question ... but I mean, here's a typical situation for me. I do a shoot ($200 - that's the camera and editing time) and I expect to be paid the day of the shoot - is there tax? They will end up with something tangible in theory. They'll get proofs online. Then there would be another invoice, when they order prints. I have always charged tax on my prints. I just want to know if I'm currently not charging tax ... where I should be. And how much this is going to come back to bite if I don't start doing it right!

I don't know if this matters or not but I'm in WI. And I have to do my tax reporting only once a year.
 

Your TAX guy doesn't know???  Time to get somebody else, I guess.  I'm in Washington State, and I have to charge sales tax on everything.  Every state is different, though, sorry I can't help you with that.

Have you checked this?

http://www.revenue.wi.gov/faqs/index-s.html

 

Leigh:

Every state is different, though, sorry I can't help you with that.

You can call your state's comptroller's office for info, too.   You are already charging tax on products, and filing annually, so just call the office that you report and pay your taxes to.  They should be incredibly helpful...  I call every once in a while when I've got a weird situation.  They're always happy to help.

I had this same problem and got a bunch of different answers from people here even within my own state...and I called the state office who told me I didn't have to charge tax on anything which seemed odd to me so I finally ended up getting in touch with a sales tax lawyer and found out that I did need to charge it.  Unfortunately not all state offices are helpful and when I asked the tax lawyer he was able to give me the exact tax code so I could verify it myself....I would say to do that....but maybe you will have better luck in WI then I did here.....sorry not to be too helpful.

Mercsadies:

I have a question to all the pros out there who are working as their own business. My tax guy was super NOT helpful (he told me - I don't know, can you ask another professional what they do?!) and I don't know who else to ask in person. What do I charge tax on? Only physical prints? Everything tangible?

Okay - this might sound like a dumb question ... but I mean, here's a typical situation for me. I do a shoot ($200 - that's the camera and editing time) and I expect to be paid the day of the shoot - is there tax? They will end up with something tangible in theory. They'll get proofs online. Then there would be another invoice, when they order prints. I have always charged tax on my prints. I just want to know if I'm currently not charging tax ... where I should be. And how much this is going to come back to bite if I don't start doing it right!

I don't know if this matters or not but I'm in WI. And I have to do my tax reporting only once a year.
 

 I work in the state of Wisconsin also.  Sales Tax is charged on all goods and services, so that's your session fees, prints, etc.  Email me at info@greyoaksphoto.com if you'd like more details.

Dave

I'm a good Hike away from you and every place is differnt... do the leg work and find out for sure. Maybe get it in writing....

I know that here in Arkansas..... I have to charge sales tax on everything.  Session fee, prints etc...  basicly the Gross ammount of income is taxed and then somehow you end up getting most of it back here.... go figure.. but do the leg work and get it from the horses mouth or it may bite you in the butt later.

Best of luck

Thanks guys - I just got my seller's permit in February so I have never reported anything yet and I'm not sure where to start calling. And as for my tax guy ... yeah ... you can say I was more than a little peeved that he thought it my job to find out this info.

 As for Dave - the state of WI doesn't charge tax on everything blanketly - my example being that I worked in more than one salon and a haircut does not have tax charged ... I asked my manager why it wasn't - and I was told that services are not taxable. I don't know now that I have switched professions if she meant all services ... like a photo session is a service ... or if she meant all salon services, like haircuts, perms, hair colorings ...

 

Like other have said, every state is different.

 Here in California, you are supposed to tax everything, even your physical service .

 Some photographers have tried the "I'm only providing a service, for my $2,000.00 + package" , however that won't work in my state.

 So, we have to tax the entire package cost, both services and products combined.

I suggest you consider a new tax professional as well.

Good luck.

Emotion Media Services - http://www.emotionphotovideo.com/

Visit your Dept of Revue homepage   http://www.revenue.wi.gov/html/indiv.html

You can probably find a fact sheet that will address your question, once you browse the site.  They list contact information, so give them a call!   ~Shel

Here in Oklahoma I don't have to charge tax on anything because I'm providing a service, not a product.  Most photographers would argue that the pictures are their product, but in Oklahoma since I use Mpix to do my printing they are providing the product (hence why I pay sales tax on my orders).  I could pass that tax on to my customers, but I don't see the need since my profit margin is so large anyway.  What I supply is the service (shooting the pics, editing, etc.). 

Shame on that tax guy!!  Find an actual CPA to answer it for you, it definately totally depends on your state.  I'm in NY and I only have to charge for the tangible property portion but I MUST break it down this way on my contract and/or invoice so it is clear should I ever get audited. ($400 for service, $200 for prints or whatever)