Just to clarify, you keep saying state taxes, where I am sure you mean sales taxes as we do not officially have a state income tax here in Texas. Franchise tax for qualifying organizations yes, but no state tax.
-- Keith Aric Hall http://keitharichall.com/ http://twitter.com/keitharichall On Jan 4, 2011, at 3:10 PM, Dean Nixon wrote: Also, in addition to this, when filing your state taxes quarterly. List in the Total sales line This is all the money you earned as a contractor - taxable or not (including your hourly earnings for your 1099 work, even if a 3rd party contractor,-but not w2 earnings). Then under Taxable sales line, just put the amount that is subject to tax. (that would be the total sales minus your 3rd party contract work: your hourly 1099 work). Just pay taxes on that much, but you do need to list your total sales even if its not taxable. --------------------------------- <image.gif> www.DeanNixonDesign.com Phone: 512.771.7658 Fax: 1.952.516.0404 From: dnd <[email protected]> Date: Tue, 04 Jan 2011 15:04:29 -0600 To: <[email protected]> Conversation: [Refresh Austin: 5684] 1099 Independent contractor pays sales tax? Subject: Re: [Refresh Austin: 5684] 1099 Independent contractor pays sales tax? If you call the state comptrollers office, they will clarify everything for you. All 1099, independent contract work as a sole proprietor. Graphic design, web design, etc. - You need to charge state tax for, Its a taxable service. However, Unless you are working under a W2, or as a 3rd party contractor, You do not have to charge state sales tax: example: if you are working for a large media firm who has a client, and they sub contract work out to you. Since they are ultimately billing the client, you do not need to charge sales tax. That would be double taxing. Think of it this way, whoever is finally selling the service/product to the client has to charge the state tax. If you are selling your services directly to a client then you charge $8.25% sales tax. Also, if you are a broker for print materials, like for business cards for example, and you have it printed out of state for a client and the client pays you for it here in Texas, you need to charge sales tax for the amount of that products you sell. You need to file quarterly or yearly depending on your total sales. The State will determine that for you. --------------------------------- <image.gif> www.DeanNixonDesign.com Phone: 512.771.7658 Fax: 1.952.516.0404 From: David Brockman <[email protected]> Reply-To: <[email protected]> Date: Tue, 4 Jan 2011 13:31:53 -0600 To: <[email protected]> Subject: Re: [Refresh Austin: 5684] 1099 Independent contractor pays sales tax? I would definitely check with a tax advisor on this. I don't know the current tax law but many years ago I worked on a small project for a client and that client got audited a couple of years after the project was done. The state of California then audited me because they saw I hadn't charged sales tax for the trade show signs I designed. The problem was that the client had me design the signs, get them printed, pick them up and deliver them to the trade show. The state considered the sign and the work I'd done in producing it to all be taxable (yes, sales tax) because it was a physical item that I'd physically delivered (as opposed to entirely digital delivery). Tax law can be bizarre and confusing so definitely double-check with an accountant or other tax professional. ~ Dave On Tue, Jan 4, 2011 at 12:57 PM, Michael Hayes <[email protected]> wrote: > I am set up as a sole-proprietorship in the state and file my sales tax > quarterly. If I am working for another company and paid hourly as 1099 > independent contractor (iphone/ios app programming) do I have to file sales > tax for that income? Just wondering if anyone knows. I plan to check with an > accountant. > > -- > Michael Hayes > http://mhayesdesign.com > 512-300-7142 > > -- > Our Web site: http://www.RefreshAustin.org/ > > You received this message because you are subscribed to the Google Groups > "Refresh Austin" group. > > [ Posting ] > To post to this group, send email to [email protected] > Job-related postings should follow http://tr.im/refreshaustinjobspolicy > We do not accept job posts from recruiters. > > [ Unsubscribe ] > To unsubscribe from this group, send email to > [email protected] > <mailto:refresh-austin%[email protected]> > > [ More Info ] > For more options, visit this group at > http://groups.google.com/group/Refresh-Austin -- Our Web site: http://www.RefreshAustin.org/ You received this message because you are subscribed to the Google Groups "Refresh Austin" group. [ Posting ] To post to this group, send email to [email protected] Job-related postings should follow http://tr.im/refreshaustinjobspolicy We do not accept job posts from recruiters. [ Unsubscribe ] To unsubscribe from this group, send email to [email protected] [ More Info ] For more options, visit this group at http://groups.google.com/group/Refresh-Austin -- Our Web site: http://www.RefreshAustin.org/ You received this message because you are subscribed to the Google Groups "Refresh Austin" group. [ Posting ] To post to this group, send email to [email protected] Job-related postings should follow http://tr.im/refreshaustinjobspolicy We do not accept job posts from recruiters. [ Unsubscribe ] To unsubscribe from this group, send email to [email protected] [ More Info ] For more options, visit this group at http://groups.google.com/group/Refresh-Austin -- Our Web site: http://www.RefreshAustin.org/ You received this message because you are subscribed to the Google Groups "Refresh Austin" group. [ Posting ] To post to this group, send email to [email protected] Job-related postings should follow http://tr.im/refreshaustinjobspolicy We do not accept job posts from recruiters. [ Unsubscribe ] To unsubscribe from this group, send email to [email protected] [ More Info ] For more options, visit this group at http://groups.google.com/group/Refresh-Austin
