Now the IRS Knows About My DT Income...Goodie!
When I started with DT, it was beyond my imagination that I will sell even a fraction of what I have sold so far. This tax filing year is the first time I was 1099’d, hence required to include my DT earnings to our income tax reporting. Perhaps it’s an untheorized reflex that when there’s a new income that the IRS needs to know about, the initial response is that of a frown, as it might result to a potential up movement to the next bracket—exactly the reaction I received from my husband as he disappointedly showed me the Form 1099 that arrived in the mail that one bright February afternoon—he didn’t say it but it was written on his face, this ‘expensive’ hobby of mine has just become more expensive!
Then he met with our tax person. He told me they briefly spoke about this new addition to our bottom line. According to my husband he gave our Accountant a ballpark estimate of what my camera cost and how one of the rooms in our house is now being utilized as my studio.
So the preliminary tax report/estimate arrived for our review. As I was looking at the ballpark figure my husband gave our Accountant, I thought about all the items I use in my photography—the computer, back up storage, lighting equipment, flash units, books, miscellaneous accessories. I listed all of them and asked for a revision.
As you might have guessed, it was a happy ending for both our Federal & State filing.
Related image searches
IRS related image searches
Photo credits: Jennifer Pitiquen.