JamesHayhurst 14 Report post Posted June 11, 2005 I'm sure that this has been discussed here in the past but I have a question about sales tax. Does anyone here charge sales tax? Share this post Link to post Share on other sites
dk34 14 Report post Posted June 12, 2005 yes, it varies by state what is taxable. Share this post Link to post Share on other sites
Mike 64 Report post Posted June 12, 2005 No, it's a service your selling, not a product. Share this post Link to post Share on other sites
John T 744 Report post Posted June 13, 2005 In NY you have to charge sales tax for a service rendered. I don't know why my work can't fall into the Home improvement catagory where it would not be taxable but that is the law of the land here. At 8.75% sales its not cheap. Share this post Link to post Share on other sites
JamesHayhurst 14 Report post Posted June 14, 2005 I live in Texas where the sales tax is 8.25%. I just had my pressure washer serviced and I noticed that they not only charged me tax for the parts but also taxed the labor. I was wondering If anyone else did the same. This is my first year in business (i'm only 18) and I've yet to file taxes. I was wondering if anyone would be kind enough to explain to how to file taxes as a self-employed person. Thank you, James Share this post Link to post Share on other sites
RyanH 14 Report post Posted June 14, 2005 I live in Texas where the sales tax is 8.25%.I just had my pressure washer serviced and I noticed that they not only charged me tax for the parts but also taxed the labor. I was wondering If anyone else did the same. This is my first year in business (i'm only 18) and I've yet to file taxes. I was wondering if anyone would be kind enough to explain to how to file taxes as a self-employed person. James Taxes are basically two parts: income and deductions. You claim every penny you earn from performing your service as income. You deduct every cost of doing that business as a deduction. You pay taxes on the difference of those two values. Things you purchase directly for the business such as chems, fuel (for the machine), ladders, computers, cell phone, advertisement, etc. are 100% deductible if used solely for your business. Other things like vehicles, a home office (as a small business you should ALWAYS claim a home office if you pay a mortgage...rental doesn't count), fuel for your vehicle, large equipment purchases, taxes on your property, taxes you collected/paid back in the form of sales tax, state tax, etc. are all deductible but only to a certain degree. Somethings (like large equipment, vehicles) must be depreciated over time and are not 100% deductible your first year of use. From doing my own taxes since Day One and being involved in my own business, I can tell you that you should 1.) Go out and buy a tax program (I use Turbo Tax but others will work too) and 2.) Document EVERYTHING!!! Make copies of your checks, keep copies of invoices, and organize every receipt, even if it's for a $0.29 screw...it all adds up. The program will walk you through everything and tell you where to send your form and payment. It's overwhelming at first (and will downright **** you off when you see that "Amount you owe" value creeping up) but is doable and you'll get the hang of it. That's just paying the taxes on the business. You then have to pay taxes on your personal income (if you're smart, you'll have a total of $0 left over for your business after paying yourself and deducting expenses, atleast in the first few years), social security (you'll get raped on this as a small business). Check with the SSA on social security measures as the Tax programs typically only handle taxes, not SS, medicaire, FICA, etc. Unless you collect in cash and don't report all of your income, you will most likely understand why so many acheivers despise our current tax system. Contact your local representatives and tell them you want a FairTax, then you can ignore EVERYTHING I wrote above should it ever go through because it will no longer be necessary to keep up with all that crap. RH Share this post Link to post Share on other sites
MeiersEnterprises 14 Report post Posted June 14, 2005 Nice Explaination Ryan! Fairtax Basics: http://www.fairtaxvolunteer.org/smart/sketch.html Share this post Link to post Share on other sites
Joe Ragsdale 14 Report post Posted June 15, 2005 James, Only the parts are taxable in Texas, not labor. They owe you a refund! :) The services that you provide are not taxable. Share this post Link to post Share on other sites
JamesHayhurst 14 Report post Posted June 16, 2005 Thank you all for the information! I hope the FairTax happens soon! Does anyone know teh current status on it? Share this post Link to post Share on other sites
MeiersEnterprises 14 Report post Posted June 16, 2005 Thank you all for the information!I hope the FairTax happens soon! Does anyone know teh current status on it? Yeah, this tax situation is rediculous! This page is updated everyday with the latest news about the FairTax: http://www.fairtaxvolunteer.org/news/index.html Join their site and they will tell you how to help. They are really trying to get this thing passed. Trying to help, I've changed my signature to include a link to them. I encourage everyone to change their signature on every board they subscribe to so we can get the word out about the FairTax. Just a thought but it won't change until people start calling and writing our worthless congressmen. Tell everyone please. Share this post Link to post Share on other sites
