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Old 02-04-2013, 03:31 AM
 
2 posts, read 1,793 times
Reputation: 10

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Hi,

About three years ago, my talent as a photographer was beginning to get attention. It started with friends and family, asking for shoots here and there, and when I was paid, I always took cash or a check. Within the last year, I got pretty busy and decided for the sake of copyright, etc. that I should come up with a business name, and work towards making it a legitimate business. I probably made somewhere around $10,000-12,000 last year, just working on the weekends while being a full time college student. I had absolutely no idea that my business would take off like it did during the last quarter of the year. I went from doing it sparingly to being swamped from October-December. I realized when I was finishing up at the end of December that I should have probably kept up with how much I actually made so that I could have filed taxes. I didn't have a sales tax license or anything though, and I was completely in the dark. I didn't file. I have since obtained a sales tax license, and I am keeping up with income/overhead etc so that I will be prepared for next year. I have no idea how much I actually made in 2012, and I am planning to purchase a house this summer after graduating from college. I am worried that I will get audited or that because I didn't file this year, it will affect my chances of obtaining a loan. What should I do? Is it okay to just ignore it? I wouldn't even know how much to estimate my earnings. I say 10-12 thousand, but honestly, I could be way off. I didn't keep up with it like I should have. I am a little scared...

Any help is greatly appreciated
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Old 02-04-2013, 07:12 AM
 
Location: NC
6,034 posts, read 7,258,070 times
Reputation: 6339
Did anyone send you a 1099 for your services? The IRS isn't tracking every deposit into your personal bank account so you can rest easy there.

If you didn't receive any 1099's then, no one reported to the IRS.

You can start tracking everything properly now....

My understanding is that certain photography work is exempt from sales taxes though?!
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Old 02-04-2013, 11:21 AM
 
Location: Central Texas
13,720 posts, read 24,787,267 times
Reputation: 9182
Sales taxes are a state/local issue, not federal. States decide what is to be taxed or not. But I don't see why photography would not be taxed just like any other service-for-hire.

As for the IRS, I would just move forward. I assume the OP is not going from zero-to-lots-of-income, which would draw attention from the IRS. I also assume the OP isn't living large right now. If the IRS did audit you, and found that you drove a Mercedes and lived in a big house you'd have a lot of explaining to do.

(I am not an accountant or lawyer so my opinion has no professional value)
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