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dsze
29th of January 2005 (Sat), 16:45
What do you guys who are only semi-pro do on your taxes? I'm talking about the guys who shoot on the side and make a couple thousand or less each year. How do you report this? do you report it?

thanks,
daniel

Longwatcher
29th of January 2005 (Sat), 18:59
That would be me at this time. Semi-Pro making some money on the side.

I add it to my day job total along with any income from my other side job.
But then I make enough for the past few years it would otherwise get lost in the background and I really like keeping my Security clearance.

I probably would no matter what, because despite my dislike of certain politicians I do believe that there needs to be a government and they need money to operate so I feel I should always pay my fair share. But I will take everything off they let me.

The fun part this year is I am going to love deducting my 1DsMkII this year.

Just me, feel free to ignore at your own risk.

vwpilot
29th of January 2005 (Sat), 22:36
Of course you report it. You can do it right on your regular tax forms when you report all of your other income. If you are talking a couple $20 prints, then no, you can get away with it. But if you made anything at all, report it.

CyberDyneSystems
29th of January 2005 (Sat), 22:37
Definately report it!!!!!!.. this way you can deduct and depreciate all that gear! ;)

NGrinerPhoto
29th of January 2005 (Sat), 23:12
if you are getting a w-9/1099 ... you have to

leony
30th of January 2005 (Sun), 00:56
Report it.
You will need to file (in addition to your 1040): Schedule C, Schedule SE. Both can be downloaded from http://www.irs.gov as PDFs along with instructions.

DOn't forget to write off all of your expenses - you did keep the receipts, right? - as well as depreciation of your gear, car, home space utilized for business, etc.

The best part is that if you actually spent more on photography than you earned from it, your other income will be less by the difference and so you pay less taxes by reporting it. Not reporting it is illigal, of course.

Vegas Poboy
30th of January 2005 (Sun), 02:20
Report it all income & expenses, cash sales is hard to track but all others can be traced. I use MS Money and track everything. Better to be safe than sorry. Besides one day you may get that one big job where the company will need your SSN in order to write you a check. So don't cheat it will cause you heartache in the end.

dsze
30th of January 2005 (Sun), 08:13
Thanks all. I fully intended to report it, but I guess I am really asking how&where? If I use TurboTax for everything else, how/where do I add those forms that you provided links to?

thanks,
daniel

IndyJeff
30th of January 2005 (Sun), 10:45
Definately report it!!!!!!.. this way you can deduct and depreciate all that gear! ;)


Ahhh maybe not Grasshopper. The IRS will not allow deductions for a hobby. You must be able to show a profit 3 out of 5 years.
A friend of mine had a race car and he did the deductions and claimed the income from sponsors and prize money. He got the deductions the first 3 years and the 4th year he still didn't show a profit and the IRS disallowed the deduction that year, declaring his racing as a hobby noy a business. I can't remember for sure but I think he had to pay the back taxes due from the previous years as well but I may be wrong on that.


Now about reporting income, some guys will tell you to take a cash payment whenever possible and not record that income. If your making a couple of hundred a month it may be easy to hide but, if your bringing in over $10,000 a year income like that, it may be a little harder to hide unless you eat out alot or bury it it a coffee can in the backyard.
I do know of a guy who works construction and does work on the side. Every job he does he asks for cash payments only. I am guessing but I think he is maybe pulling an extra 12-15 grand a year. He uses that money for a nice family vacation, clothes, gas etc, etc. Nothing that would require a receipt that could leave a paper trail with his name on it.