Acesgame Posted September 6, 2012 Report Share Posted September 6, 2012 I have been looking at alot of peoples web pages. Some charge for thread, batting separate, some just have a set fee per inch. I would think supplies are taxable but labor is not. If so, how do they get around it. If not, set me straight please. Also, if you rent time on your machine, is that taxable?? I don't want to get in trouble with uncle when I want to write off some of my costs. Link to comment Share on other sites More sharing options...
Janette Posted September 6, 2012 Report Share Posted September 6, 2012 I would recommend that you find a tax accountant and they will be able to advise you on what is applicable in your area. I am an accountant and quilter here in the UK, but of course tax rules are different here. Link to comment Share on other sites More sharing options...
ffq-lar Posted September 6, 2012 Report Share Posted September 6, 2012 Laws vary from state to state, so Janette gives great advice. I charge state sales tax for everything, including labor. Link to comment Share on other sites More sharing options...
Sandra Darlington Posted September 6, 2012 Report Share Posted September 6, 2012 I do not charge tax on labor. I do not charge my customers for thread (I include thread in their overall, per sq in charge). I buy thread wholesale, but pay the tax myself. If customers want me to supply the batting, I do charge them sales tax. They have the option to supply their own batting, however. Link to comment Share on other sites More sharing options...
JoleneK Posted September 6, 2012 Report Share Posted September 6, 2012 In Florida we have to charge sales tax on labor and supplies ( thread, batting). If I purchase thred/batting wholesale, I charge the customer and report it on my quarterly sales & use taxes. If I've purchase thread or batting retail and already paid sales tax at a store then I'll charge the customer the sales tax but not report it on my sales use tax (can't see paying it twice). Always best to check your state tax laws! Link to comment Share on other sites More sharing options...
Janette Posted September 6, 2012 Report Share Posted September 6, 2012 Sounds complex in America..... if you are vat registered here in the UK you charge VAT on everything materials and labour, and can reclaim VAT on your supplies, but you don't have to register for vat til you earn about £68000 turnover.... may be higher than that now.... Link to comment Share on other sites More sharing options...
shirleyl Posted September 6, 2012 Report Share Posted September 6, 2012 In Wyoming everything is taxable. The department of revenue and taxation can answer that. Here you need to apply for a tax id number and fill out monthly or quarterly reports and pay them. It varies from state to state and sometimes county to county. It is best to contact them with a list of questions and keep a log of answers and who and when you got them from. Link to comment Share on other sites More sharing options...
Busy Quilting Posted September 6, 2012 Report Share Posted September 6, 2012 Janette Australia is similar to the UK, in the US each state has their separate taxes that they collect - very confusing. Link to comment Share on other sites More sharing options...
Susanri Posted September 6, 2012 Report Share Posted September 6, 2012 The irony can be if you don't do enough business you can be a hobby, where that line is drawn I have no clue. Link to comment Share on other sites More sharing options...
Quilting Grammy Posted September 6, 2012 Report Share Posted September 6, 2012 In MO. I don't have to charge taxes because I am performing a service and then I don't make enough to have to pay anything. Link to comment Share on other sites More sharing options...
shirleyl Posted September 6, 2012 Report Share Posted September 6, 2012 You have to check with your state. In Wyoming even if you have s gsrshe sale you ate legally responsible go collect and remit sales tax. If you purchase say furniture out of state and you don't pay sales tsc there then you are required to pay it here. Link to comment Share on other sites More sharing options...
Sandra Darlington Posted September 7, 2012 Report Share Posted September 7, 2012 Originally posted by Busy Quilting Janette Australia is similar to the UK, in the US each state has their separate taxes that they collect - very confusing. Also, taxes can be different within the same state. Eg: my state tax is 6% and my city tax is 2%, so I have to charge my customers 8% for taxable items. Link to comment Share on other sites More sharing options...
Hawaii Posted September 7, 2012 Report Share Posted September 7, 2012 Here in Hawaii, we pay taxes on net income (total income less expenses) but we have to pay a 4.5% general excise tax on gross revenue. It almost seems that small business is in the business of paying taxes here on the islands. Link to comment Share on other sites More sharing options...
Kueser Posted September 7, 2012 Report Share Posted September 7, 2012 Check with your state department of revenue. Our state requires sales tax for service plus materials with a few exceptions. When it comes to the Feds, all income is taxable but may be offset by expenses related to your income. If all this is fuzzy or slightly scary to you, find an accountant or competent book keeper that can help you. You may need a tax i.d. number for the state. Link to comment Share on other sites More sharing options...
quiltingjoyful51 Posted September 7, 2012 Report Share Posted September 7, 2012 In Ohio everything is taxable, labor,shipping,materials used, you name it they tax it. Link to comment Share on other sites More sharing options...
jmcclannan Posted September 7, 2012 Report Share Posted September 7, 2012 In Nebraska everything is taxed! Link to comment Share on other sites More sharing options...
HeidiP Posted January 24, 2013 Report Share Posted January 24, 2013 Reported Link to comment Share on other sites More sharing options...
cathyh Posted January 24, 2013 Report Share Posted January 24, 2013 Sales tax is state by state and in California, tax is added to any sale of goods and labor (time) if it is involved in adding value to a product, but not if your time (labor) is just consultation. If you are buying goods that will go into the product , and have resale license you can buy products without paying tax because when you sell them you will collect the tax. In the end, your accountant should be able to clarify all this confusing tax stuff. I wouldn't have a business without one. Link to comment Share on other sites More sharing options...
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