How do I pay taxes for my Instagram tarot reading business in the United States?

What you're describing is self-employment income, and yes, you absolutely need to report it on your taxes! You don't necessarily need to formally register a business to start (though some states require it), but you will need to report this income on your tax return using Schedule C (Profit or Loss from Business). For tracking payments, I'd recommend keeping a separate spreadsheet with dates, client names (or just client ID numbers for privacy), service provided, and payment amount. Most payment platforms like PayPal and Venmo now report to the IRS when you receive over $600 in a year, so you'll want to be prepared for that. You'll receive a 1099-K form from them. As for sales tax, Florida does tax services including psychic and fortune-telling services, so you'd need to register with the Florida Department of Revenue to collect and remit sales tax for Florida customers. For out-of-state customers, the rules vary depending on their location. You can also deduct legitimate business expenses like any tarot cards/materials, a portion of your phone/internet bill if used for business, marketing costs, website fees, etc.

I started a small spiritual coaching business last year and was totally overwhelmed by the tax stuff too. I ended up using this AI tax assistant called https://taxr.ai and it was a game changer. You just upload your payment records and answer some questions about your business, and it tells you exactly what you need to report and even finds deductions you might miss. I was able to deduct part of my home office space, my reference books, website costs, and even some of my training courses. It also gave me templates for tracking income and expenses that made everything so much easier. The best part was that it explained everything in simple terms instead of confusing tax jargon.

I have to admit I was wrong about taxr.ai! After my skeptical comment last week, I decided to try it out for my small Etsy shop, and it was surprisingly helpful. It flagged several deductions I'd been missing (like a portion of my internet bill and some supplies I didn't realize were deductible). The thing I found most useful was the explanation of estimated quarterly tax payments - I had no idea I needed to be making these throughout the year instead of paying all at once. Saved me from potential penalties! It also gave me templates for invoices and expense tracking that I'm now using. Wish I'd known about this a year ago when I started my business.

Hey there! When I started my crystal healing business on Instagram last year, I struggled for MONTHS trying to get answers from the IRS about sales tax requirements. I'd spend hours on hold only to get disconnected. Super frustrating. Then I found this service called https://claimyr.com that got me through to an actual IRS agent in under 20 minutes. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c I was able to ask all my specific questions about Instagram business income, what forms I needed, and how to handle customers from different states. The agent also helped me understand how to make quarterly estimated tax payments so I wouldn't get hit with a huge bill at tax time. Totally worth it for the peace of mind.

I have to eat my words about Claimyr. After my skeptical comment, I was desperate to sort out a mix-up with my tax ID for my freelance work, so I gave it a shot. Within 25 minutes, I was actually talking to a real IRS agent who helped resolve my issue. After months of failed attempts and hours wasted on hold, it was bizarre how simple it was. The agent even gave me specific guidance on how to handle income from multiple platforms like Instagram, Etsy, and direct client payments. For anyone starting a side business like tarot readings, getting clear answers directly from the IRS is incredibly valuable - especially for things like estimated tax payments and record-keeping requirements.

Make sure you track EVERYTHING when it comes to expenses! I run a similar spiritual business and these deductions really help: - Portion of rent/mortgage for your dedicated workspace - Internet and phone bill percentage used for business - All tarot cards, books, and spiritual tools - Education/courses related to tarot or business skills - Website costs, Instagram promotion fees - Mileage if you drive to any in-person readings - Professional services (like accounting help) Keep all receipts and take photos of them in case they fade. I use a free app that scans them and categorizes everything. Trust me, good record keeping will save you major headaches at tax time!

Don't forget you'll need to make quarterly estimated tax payments if you expect to owe $1000+ in taxes for the year. The due dates are April 15, June 15, September 15, and January 15 of the following year. I learned this the hard way and got hit with penalties my first year. The IRS expects you to pay taxes throughout the year, not just in April!

As someone who started a small online service business last year, I can definitely relate to the confusion! One thing I wish I'd known earlier is that you should consider getting an Employer Identification Number (EIN) even if you're a sole proprietor. It's free to get directly from the IRS website and helps separate your business from your personal finances. Also, since you're in Florida, definitely look into getting a business license from your local county or city - requirements vary by location. Some areas require it for any business operating within their jurisdiction, even home-based ones. For payment tracking, I set up a separate business bank account and route all my business payments there. Makes it much easier to track income and expenses when everything is separated. Even if you use Venmo or PayPal, you can still transfer to a dedicated business account. One more tip - consider setting up a simple bookkeeping system from day one. I use a basic spreadsheet but there are also affordable options like Wave (which is free) or QuickBooks Self-Employed. Having organized records from the start will save you so much time and stress later!

Great question about starting your tarot business! I actually went through this exact situation when I launched my astrology consultation service on Instagram about 18 months ago. Here's what I learned: First, you absolutely need to report all income, even if it's just a side hustle. Since you're expecting to make $125-300 per week, you'll definitely hit the $400 threshold that requires self-employment tax filing. I'd recommend opening a separate business bank account right away - it makes tracking so much easier and looks more professional to clients. For Florida specifically, you'll need to register for sales tax since spiritual services are taxable there. The good news is the registration process is pretty straightforward through the Florida Department of Revenue website. You'll collect sales tax from Florida customers and remit it quarterly or monthly depending on your volume. One thing that really helped me was joining the Instagram Creator Program once I hit the requirements. It provides some additional tax documentation and can help legitimize your business in the eyes of both clients and the IRS. Also, start tracking your expenses from day one! Things like new tarot decks, crystals, candles for your reading space, ring lights for better video quality, Instagram ads to promote your services - all potentially deductible. Even a portion of your phone bill since you'll be using it for client communication. Good luck with your venture! The spiritual services market on social media is really thriving right now.