Decisions, decisions..... and that means lots of questions!!

[essiejane]

Thanks so much Anne!
So would I have to file a tax return? Or can I just fill out the info on the form without having to? I am sorry to be so ignorant, but I guess now is the time to learn, right?

[AnneWynne]

Originally Posted by essiejane

Thanks so much Anne!
So would I have to file a tax return? Or can I just fill out the info on the form without having to? I am sorry to be so ignorant, but I guess now is the time to learn, right?

I am not sure. You could actually call the IRS or email them your questions (they can actually be quite helpful.) Even if you have to fill out a tax return, a 1040-EZ is simple and your parents can help. If you have to fill out a more complicated form, good for you! That means you made a lot of money!

GL

[Jack Skunk]

Hey, as far as taxes go, I did a lot of stuff for money before I had the ability to get a "real" job and I never paid taxes. No one is going to audit you for mowing some lawns or baby sitting, so as long as you are just taking some pictures for folks you kind of know and your parents are still supporting you, don't sweat it.

Your pictures are good and creative. Keep shooting and by the time you are out of high school you'll probably be able to really make some money and maybe support yourself.

[theosus]

Originally Posted by Jack Skunk

Hey, as far as taxes go, I did a lot of stuff for money before I had the ability to get a "real" job and I never paid taxes. No one is going to audit you for mowing some lawns or baby sitting, so as long as you are just taking some pictures for folks you kind of know and your parents are still supporting you, don't sweat it.

+1 on that. Its doubtful you'll make enough right away for people to notice. Gift cards or cash - they are both income. I'd ask for cash instead, because you can save it and earn interest while waiting to buy gear. Gift cards have all kinds of issues. Check with a credit union about a teen savings account. Often there are some perks to it - better rates, free stuff, etc. Why a credit union and not a bank? You'll see a better return, credit unions are non-profit (which means they dont try to sell you stuff you dont need and profits are shared by members - you), and credit unions didn't cause the current financial crisis like banks did (end soap box).

I would look into the tax situation, because it will rear its ugly head in the future. Use turbotax online. You can figure everything out - and they wont charge you anything unless you actually try to file with them. The new edition of their software will probably be ready for use in january if its not up already. You could also talk with an accountant - someone who can give you good tax advice, or like someone else said, even the IRS might be helpful.

Dont get a business license unless your county/state absolutely requires it, and check into fees. A friend of mine was married once, and his wife made and sold candles and soap from their house. They got a business license so they could take off expenses as tax deductions. The county sent them a $1200 tax bill for operating a business out of her home.