Jump to content

Recommended Posts

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 post
Share on other sites

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 post
Share on other sites

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 post
Share on other sites

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 post
Share on other sites
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 post
Share on other sites

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 post
Share on other sites
  • 4 months later...

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 post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
×
×
  • Create New...