I recently spoke to a Sales & Use Tax analyst and here's what I was told:
As I focus solely on WordPress development, and specifically on modifying existing premium themes like Thesis and Genesis, I'm exempt from sales tax as described in (b)(4) here: http://info.sos.state.tx.us/pls/pub/readtac$ext.TacPage?sl=R&app=9&p_dir=&p_rloc=&p_tloc=&p_ploc=&pg=1&p_tac=&ti=34&pt=1&ch=3&rl=308 (b)(4) Charges to create a program or modify an existing program not sold by the person doing the modification are not taxable. If I provided Web Design services to clients, 80% of it would be taxable. Consulting and training are exempt from sales tax as well. Note that this isn't legal advice and you should seek the opinion of your accountant (and whatever else I'm supposed to say...). --- Bill Erickson Wordpress Consultant http://www.billerickson.net On Tue, Jan 4, 2011 at 3:10 PM, Dean Nixon <[email protected]> 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. > --------------------------------- > > * > *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. > > > --------------------------------- > > * > *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]<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]<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
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