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Thread: End of the year taxes for a web designer..

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  1. #1

    End of the year taxes for a web designer..

    End of the year taxes for a web designer..

    So a Web Designer is pretty close to just being a artist, you create a design and it goes up la la la.

    What happens at the end of the year? are we supposed to be paying high taxes on creative work? Some reason this doesn't sound right.

    Anyone have any information on how taxes work for an artist/designer?

    Should I be charging sales tax on my services?

    -Line
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  2. #2
    Senior Member dlowe93's Avatar
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    Re: End of the year taxes for a web designer..

    Originally posted by LineDetail
    Anyone have any information on how taxes work for an artist/designer?

    Should I be charging sales tax on my services?

    -Line
    Well, it mostly depends on where you live. Each country has its own tax laws, and in the US, each state also has its own tax laws but generally speaking, yes, you do need to pay taxes on your income.

    I only know about California and Oregon taxes. You should find an accountant who is familliar with your local tax laws to help you determine the best way to approach your taxes. If your state charges sales tax, you only need to charge sales tax if you are producing or delivering something physical. If all you bill to the client are labor hours, then you do not need to charge sales tax. Still, you will have to pay income tax, them's just the rules.

    Hope this helps,

    d.
    dlowe93

  3. #3
    supervillain gerbick's Avatar
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    if you are indeed in the states, then you were supposed to get a 1099 for all of your work, and be taxed according to that.

    However, if you did not... well, you will have to still claim your income, and your taxes taken out will be zero for the year... so that means you will ultimately have to pay for whatever your income was.

    And don't cheat or lie. It'll all come back to haunt you in the end.

    I'm speaking from experience. I used to not take taxes out, something I changed in the last couple of years. And after paying $19,000.00 in taxes in 2000, I changed the way my contracts were structured.

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  4. #4
    Nyuk! Nyuk! Nyuk! Hey Moe... serpent star's Avatar
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    gerbick, what does your new structure look like compared to the old one?

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    supervillain gerbick's Avatar
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    I take a flat 23% out for taxes, and another 13% for my 401K I set up in 2000. I still set aside another 8% for state taxes.

    Investments are handled a bit different now though. My investments are considered payment to me as an individual, and the 1099-DIV's are enrolled/paid out to me individually, not the company.

    Property and what not is all set up as personal goods... sue the company, don't get the property or investments.

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  6. #6
    Nyuk! Nyuk! Nyuk! Hey Moe... serpent star's Avatar
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    does that 13% include FICA?

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    supervillain gerbick's Avatar
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    you know. good question. I'll have to ask my CPA.

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  8. #8
    Nyuk! Nyuk! Nyuk! Hey Moe... serpent star's Avatar
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    Don't stress on it for my sake... I'll be finding out soon enough.

  9. #9
    supervillain gerbick's Avatar
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    dude, I looked at last year. nope. I used my 1099-DIV to pay for FICA. I had done well enough to pay it without any incident or hitting the investements. all profit.

    that's why I set up the 401k. less money that's taxable as well. but what I do is roll the money from investments over to an interest-earning account.

    This year... my investments still pulled a gain. And I overcompensate the Federal and State to make up for any gaps just in case...

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  10. #10
    Nyuk! Nyuk! Nyuk! Hey Moe... serpent star's Avatar
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    thanks man!

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