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Sole proprietorship is the simplest business structure but just remember you'll need to pay self-employment tax (about 15.3%) on your photography income. Even if it's under $1k, you still need to report it.
Wait, self-employment tax is 15.3%?? That seems super high. Is that on top of regular income tax? I thought since I made less than $1,350 I might not even need to report it.
Yes, self-employment tax is 15.3% which covers Social Security and Medicare taxes. When you work for an employer, they pay half of this and you pay half, but as a self-employed person, you cover the entire amount. This is in addition to your regular income tax. However, there's good news - you only have to file and pay self-employment tax if your net earnings are $400 or more. So if your photography income after expenses is less than $400, you wouldn't owe self-employment tax. But you should still report the income on your tax return regardless of the amount. Those equipment deductions might actually bring your net profit below the $400 threshold, which would save you from owing the self-employment tax.
Don't forget you can also write off other stuff besides just equipment! I do wedding photography and deduct my website costs, part of my cell phone bill, mileage to/from shoots, lightroom subscription, business cards, etc.
Can you write off education costs too? I took some online photography courses to improve my skills.
Yes, you can absolutely deduct education costs! Online photography courses, workshops, tutorials, and even books related to photography are all legitimate business education expenses. Just keep your receipts and make sure the education is directly related to your photography business. I deducted a $300 lighting workshop last year and it passed my audit without any issues.
Have you checked your child's credit report? If someone has your child's SSN, they might be using it for more than just taxes. How did you discover that someone else claimed your child? Did you get a rejection when trying to e-file, or did you receive a notice from the IRS?
This is such a frustrating situation! I went through something similar when my neighbor's ex-wife claimed my daughter by mistake (they have the same first name). Here's what I learned from that experience: 1. Don't panic about the refund delay - yes, it will take longer, but you WILL get your money eventually 2. Gather every piece of documentation you have showing your child lives with you - school enrollment, medical records, daycare receipts, etc. 3. When you paper file, include a cover letter explaining the situation clearly 4. Keep copies of everything you send The most important thing is to act quickly. The IRS will eventually sort this out, but the sooner you get your paperwork in, the sooner they can start the review process. In my case, it took about 4 months total, but I got my full refund plus interest for the delay. Stay strong - you're the rightful parent and the system will work in your favor!
Doesn't anyone use digital storage anymore?? I scan everything into Google Drive and shred the originals. Been doing this for 10+ years now. I have a folder for each tax year and subfolders for W2s, property tax, etc. No more paper clutter and I can find stuff instantly when needed.
I do this too but make sure you're encrypting sensitive docs before uploading them to cloud storage! Regular PDFs in Google Drive aren't that secure. I use encrypted archives or password-protected PDFs.
As someone who went through this exact decluttering process last year, I'd recommend creating a simple spreadsheet to track what you're keeping vs. shredding by year. The 3-year rule is generally safe for most people, but I kept 7 years worth just for peace of mind after reading about those audit extension scenarios. One tip that saved me hours: invest in a decent cross-cut shredder if you're going to tackle years of returns. My little strip-cut shredder died halfway through 2015's paperwork! Also, don't forget to shred any old bank statements or credit card statements from those same years - they often have account numbers that could be useful to identity thieves. For what it's worth, I found the decluttering process oddly satisfying once I got into a rhythm. Just make sure you double-check for any documents related to ongoing issues (like home improvements or investments) before you shred!
I'm in the middle of my OIC process and the waiting is brutal!!! Submitted everything 5 months ago and still showing as "pending" whenever I check the status online. Does anyone know if calling actually speeds anything up?
In my experience, calling doesn't speed up the process but can sometimes give you peace of mind about where things stand. My OIC took 13 months total, with several requests for additional information along the way.
I went through the OIC process last year and it was one of the most stressful but ultimately rewarding experiences dealing with the IRS. My situation was similar to yours - owed about $38,000 due to business failure and medical issues. A few key things I learned: First, be absolutely honest and thorough with your financial documentation. The IRS will verify everything, and any inconsistencies will delay or kill your application. Second, don't underestimate how long it takes - mine took 14 months from start to finish, with multiple requests for additional paperwork. I did use a tax professional for the initial application, which cost me $3,500, but it was worth it for the peace of mind. They helped me calculate a realistic offer amount ($11,200 for my $38,000 debt) and made sure all the forms were filled out correctly. One thing nobody tells you - during the application process, the IRS stops collection activities, which was a huge relief. No more threatening letters or calls. Just be prepared for the emotional rollercoaster of waiting months without updates. The acceptance letter arriving was one of the best days of my life. Don't give up hope - if your financial situation truly warrants it, the program can work. Just be patient and meticulous with your paperwork.
This is really encouraging to hear! I'm just starting to gather all my financial documents and feeling overwhelmed by the process. When you say they verify everything - do you mean they actually contact banks and employers directly, or do they just cross-reference with other tax records? I'm worried about missing something important that could derail my application. Also, did your tax professional help you determine what qualified as "allowable expenses" for the financial analysis? I keep reading conflicting information about what the IRS considers reasonable living expenses.
Lily Young
Remember that gambling income is taxable even if you didn't get a W2G form. The IRS requires you to report ALL gambling winnings, even small amounts. Player cards at casinos can also track your activity.
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Ana ErdoΔan
β’what about online gambling?
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Lily Young
β’Online casinos still report to IRS if you win over $1,200 in one go. They have your SSN when you signed up.
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Nia Wilson
The IRS gets copies of all W-2G forms that casinos issue for winnings over $1,200 (slots/bingo) or $5,000 (poker tournaments). Your transcript will definitely show these reported amounts even before you file your return. If you had $50k in wins, that's likely already in their system. Best to get your transcript now and see exactly what they have on file - you can request it free directly from IRS.gov. Don't risk penalties by underreporting what they already know about.
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Giovanni Marino
β’This is super helpful info! I'm new here but dealing with a similar situation. Quick question - when you say "get your transcript now", how long does it usually take to receive it? And is there a difference between what shows up on the online transcript vs the mailed version? Want to make sure I'm seeing everything before I file.
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