Do you think any furries actually pay taxes on their art?

[Shadow of Bucephalus]

When I was making a lot from art, I didn't even realize that it was taxable. Do you know anyone who does this?

Taxes were already paid for the materials purchased to make said art.
Your time is worth something, and the govt. can keep it's grubbin' mitts OFF of it, far's I'm concerned.
If said taxation was legit? Then there should also be tax write-offs for all that material, ESP. if you're a digital artists. Tablets ain't cheap. PC's aren't cheap. Paying for your interwebz, etc., etc., etc..

Now, if your SOLE INCOME was via art, and you made a damned nice LIVING doing it? Sure.
To go after small-time artists, scrabbling to earn enough just to keep a place, utilities, and food on the table? Nope.

Yes, I'm a rebel.

::Takes-out my brown lined paper and another box o' crayons... ::

Imma make the BEST stick-figures you EVAH saw!...

 

[Asher Grey]

PayPal will disable your account if you breathe the wrong way, actually-

It's not illegal to not report income IF you don't have a business. i.e, you don't have a Business Paypal. Thats why I mentioned doing it as a hobby verses doing it as a business.
Though, whatever you do with taxes, PayPal doesn't care. Just don't be on the wrong side of the internet and you should be fine.

I'll second that. Also don't change too much personal info at once in your account, don't include nsfw keywords in your messages, etc...

Though the paypal fee already feels like being taxed sometimes :/

 

[PercyD]

I'll second that. Also don't change too much personal info at once in your account, don't include nsfw keywords in your messages, etc...

Though the paypal fee already feels like being taxed sometimes :/

Lol far from it. Thats just how PayPal keeps their servers fed.

Btw, as a business, you can write off those fees as a business expense. Write offs goes towards reducing your tax burden as a business.

 

[tinybuggy]

I know I make enough that I have to report it but with deductions, I would t actually have to pay anything

 

[Corrupt-Canine]

I think it depends on your income. Here in the US, your income becomes taxable once it hits a certain bracket.
Not paying taxes can get the IRS to tear you in 2, so I'd rathar be safe than sorry. Art is a hobby for me and I don't make any money from it. I wish I did though.

 

[Skychickens]

It depends. There’s a fine line as to what counts as hobby and what counts as income. Some places have a low you should file but you’re not taxed. I was told in my state that’s $400 and at like $4000 you’re taxed. But I don’t remember. So I’m bringing everything I invoicdd last year to H&R Block’s and making sure. I’d honestly rather be safe than sorry when it comes to taxes.

 

[Ramjet]

I say keep as much as you can under the table, as a 'starving artist' take cash at cons, and report as little as you can. Don't leave a huge trail.

No use for poor folks to be paying too much when rich ones are getting such huge breaks and have 1,001 loopholes to exploit. I'd be careful, but also, avoid going outta my way to declare too much.

Exactly this ^

What the government doesn't know, doesn't hurt you

Depends on how you transfer that payment after receiving it though...

 

[PercyD]

Exactly this ^

What the government doesn't know, doesn't hurt you

Depends on how you transfer that payment after receiving it though...

I would say also that the tax rules in the US have changed.
It doesn't serve freelancers (including artists) that well. There are a lot of exploits small time folk can't even reap the benefits from. :\
Thats a problem. How are we going to get more small businesses if you step on em before they even get started? Side hustles should be encouraged!

 

[ZeroVoidTime]

Well.... There is a reason why I do my art as a passing free hobby than as a way to get money.

 

[Spicy Cheeto]

I actually ask people to pay me with e-gift cards so I don’t have to worry about it. They’re just giving me a “gift” after I drew them something XD

I know I’ve never made enough for it to be tax deductible but I do this just to feel safe.

 

[PercyD]

I actually ask people to pay me with e-gift cards so I don’t have to worry about it. They’re just giving me a “gift” after I drew them something XD

I know I’ve never made enough for it to be tax deductible but I do this just to feel safe.

Wow, you know what? Thats fancy-
I don't think they can tax gift cards, like, actually. Plus it's considered a (tangible) gift. I know gifts of cash are taxed up to a certain ammount (I forget exactly). But they can't tax tangibles or commodities. This is unless it's considered property that has a value and needs to be apraised, like a car, a boat, a piece of artwork, or maaaybe jewelry.

 

[Spicy Cheeto]

Wow, you know what? Thats fancy-
I don't think they can tax gift cards, like, actually. Plus it's considered a (tangible) gift. I know gifts of cash are taxed up to a certain ammount (I forget exactly). But they can't tax tangibles or commodities. This is unless it's considered property that has a value and needs to be apraised, like a car, a boat, a piece of artwork, or maaaybe jewelry.

They can’t. That’s why I do it. Makes me feel safe. I’ve never made enough real money for it to be deductible either. Now I mainly ask for e-gift cards anyway.

 

[PercyD]

They can’t. That’s why I do it. Makes me feel safe. I’ve never made enough real money for it to be deductible either. Now I mainly ask for e-gift cards anyway.

How can you trust someone won't take back the money once they put it on the gift card?

Obviously, only work with people who you can trust. Clearly. -But is there any thing preventing something like that from happening from the otherside?

 

[andoknee]

Sales tax is government theft! furries rise up

 

[Misha Bordiga Zahradník]

In the US you are supposed to report any source of income that isn't a gift or something of the sort. That includes comissions. Now you don't have to worry about sales tax if you are doing online comissions right now, because the laws haven't caught up with digital trade. If you have a formal business and sell artwork locally, you will have a whole other set of taxes to deal with seperate to income.

On the one hand, fuck the US government and how it wastes my money on pointless wars and graft. On the other hand, don't fuck with the IRS!

 

[Simo]

Exactly this ^

What the government doesn't know, doesn't hurt you

Depends on how you transfer that payment after receiving it though...

I couldn't agree more. No need to have them hoovering up every last dime.

 

[Trinity-Dragon]

All taxation is theft.

 

[Spicy Cheeto]

How can you trust someone won't take back the money once they put it on the gift card?

Obviously, only work with people who you can trust. Clearly. -But is there any thing preventing something like that from happening from the otherside?

I quickly put the e-card on my account so they can’t take it back XD. It’s already too late.

 

[PercyD]

I quickly put the e-card on my account so they can’t take it back XD. It’s already too late.

Ah like, you get Amazon cards and you load it.
I dunno, for some reason I thought you were getting like... lol, Sears or something. *The Gap*

 

[PercyD]

All taxation is theft.

I disagree cause I want my roads worked on and my water clean.

But given the bullshit my taxes have been used to pay for, I'll agree with you in practice. Bullshit like wars I didn't get a chance to vote on and paying secret service to pay at Trump Tower.

 

[Water Draco]

In the UK sales tax is called value added tax (VAT) and for the majority of things it is currently set at 20%

I can not remember the exact number but it is something like as long as you're total turnover is under £83000 you do not have to be VAT registered.

If you hit the 83k then you have to registered and collect VAT on behalf of HMRC when you charge your clients for products and services. But at the same time you can claim the VAT back on items you have paid VAT on for your business.

 

[Marcl]

In the UK sales tax is called value added tax (VAT) and for the majority of things it is currently set at 20%

I can not remember the exact number but it is something like as long as you're total turnover is under £83000 you do not have to be VAT registered.

If you hit the 83k then you have to registered and collect VAT on behalf of HMRC when you charge your clients for products and services. But at the same time you can claim the VAT back on items you have paid VAT on for your business.

I'm pretty sure that in most countries commissioned art might be free of VAT.

At least I think it is X3

 

[quoting_mungo]

I'm pretty sure that in most countries commissioned art might be free of VAT.

At least I think it is X3

Not in any country I know of. IIRC it may not be taxed at the highest tariff in Sweden, but art is ultimately a luxury good, and those are rarely excempt from taxes.

 

[Marcl]

Not in any country I know of. IIRC it may not be taxed at the highest tariff in Sweden, but art is ultimately a luxury good, and those are rarely excempt from taxes.

Yes, art is an luxury good, but I think a commissioned art straight from the artist (so not reselling) should fall under VAT-free... Though it might be a local thing again.