I'm wondering what tax software people use for reporting this kind of income? I've always just used the free SimpleTax/Wealthsimple Tax but not sure if it handles self-employment stuff well?

One thing I haven't seen mentioned yet is the importance of keeping detailed records from day one. Since platforms like feetfinder handle payments digitally, make sure you're downloading monthly statements and keeping screenshots of your earnings. The CRA can ask for proof of income going back several years if they ever audit you. Also, don't forget about potential business deductions! If you're using your phone for photos, a portion of your phone bill might be deductible. Same with internet costs, any props or clothing you buy specifically for photos, even a portion of your home if you're using a specific room for photo shoots. These deductions can help offset some of the tax burden. I'd also recommend opening a separate bank account just for this income if you're planning to take it seriously. Makes tracking so much easier come tax time, and it looks more professional if the CRA ever has questions.

I'm just starting my S Corp journey too and this thread has been incredibly helpful! I was literally panicking yesterday when my accountant handed me a similar list of vendors who need 1099s. One thing I'm still confused about - if I paid someone like $400 in cash for makeup services throughout the year but then also Venmo'd them $300 for additional work, does that $700 total mean they need a 1099? Or since the Venmo portion might be handled by the payment processor, do I only count the cash payments toward the $600 threshold? Also, for those of you who've been through this process - how far back do you typically keep records of these vendor payments? I'm trying to organize everything for this year but also wondering if I should be worried about prior years before I had the S Corp set up. Thanks for sharing all your experiences - it's making this whole learning curve feel way less intimidating!

I'm dealing with this exact same situation right now! Just set up my S Corp last month and my accountant dropped the same bombshell about 1099s. Reading through all these responses has been super educational. One thing I'm still trying to wrap my head around - how do you all handle vendors who work both personal and business services? Like my makeup artist does my everyday look but also does special event makeup for professional appearances. Do I need to track and separate those payments, or can I treat all payments to her as business expenses since I'm in entertainment? Also, seeing the penalties mentioned here ($50-$280 per form) is definitely motivating me to get this right from the start. Better to be overprepared than deal with IRS headaches later. Thanks everyone for sharing your experiences - this community has been way more helpful than trying to decode IRS publications on my own!

Don't stress too much about this! I accidentally selected "retail" for my SAAS business two years ago and it's never caused any issues. The business category on the EIN application isn't as critical as people make it out to be. The IRS cares more about accurate income reporting than the specific category you select during application.

Great question! I went through this exact same process last year for my SaaS startup. After researching extensively and consulting with my accountant, I selected "Service" for our EIN application. The reasoning is that SaaS businesses are fundamentally providing ongoing access to software functionality rather than selling a tangible product. Even though customers "purchase" subscriptions, what they're really buying is continuous access to your service platform. This puts it squarely in the service category rather than retail, which is typically reserved for businesses selling physical goods or one-time software purchases. The IRS views subscription-based software access as a service offering, similar to how they'd classify other subscription services like consulting or cloud hosting.

Does anyone know if this credit phases out at higher incomes? I make about $150k and sometimes tax benefits disappear for me.

Just wanted to share my experience as someone who was in your exact situation last year! I had two kids (ages 18 and 19) who aged out of the Child Tax Credit, and I was also getting a refund due to overwithholding. I can confirm that claiming the Credit for Other Dependents absolutely increased my refund by the full $1,000 ($500 per kid). The credit reduces your tax liability first, and then any remaining refund from overwithholding gets added on top of that. So yes, it's definitely worth doing the paperwork! One tip: make sure you have all their information ready (SSNs, birth dates, etc.) and double-check that they meet the qualifying criteria. My tax software made it pretty straightforward to add them once I confirmed they qualified. Don't leave that money on the table - it's essentially free money the government owes you for supporting your dependents.

Has anyone looked at what your CPA's engagement letter says? Mine has language about "utilizing staff and third parties" for tax preparation. I never noticed it until I actually read the fine print last year. Might be worth checking if you agreed to this already without realizing it.

This is definitely something worth questioning, and you're not wrong to feel put off by it. I went through something similar last year with my long-time CPA firm. What helped me make the decision was asking for specifics about their outsourcing arrangement. I requested a meeting to discuss exactly what parts of my return would be outsourced, what security protocols they had in place, and how their review process worked. Turns out they were outsourcing to a firm in India that specialized in US tax prep, but my CPA only spent about 15 minutes reviewing the completed return before filing. For a $450 fee and a relatively straightforward return like yours, I'd expect more personal attention. I ended up switching to a smaller local CPA who handles everything in-house. The price was actually $50 less, and I have direct contact with the person preparing my taxes. My advice: ask your current CPA for a detailed breakdown of their outsourcing process and consider getting quotes from other local preparers. You might find better service for the same price or less.