If I started a business and have a full-time job, do I file taxes from these occupations together or separately?

by Ryan Raffensperger, CPA | Jun 29, 2018

I started a photography business this year. I received a letter about withholding taxes, but I am not sure where to begin. I work a full-time job in addition to this business. Do I file together or separately? What forms or software do I need in order to file? 

I will attempt to generally answer your question, but additional consultation with a professional may be needed to answer specifics in your situation.
Assuming that you have not formed any type of entity for the business, you would not be required to file any additional tax returns. You would report your income and expenses on Schedule D on your tax return on an annual basis. In addition, assuming that you have a tax liability, you would need to remit that estimated tax on a quarterly basis via federal Form 1040-ES to the U.S. Treasury and Pennsylvania Form 40-ES to the Pennsylvania Department of Revenue. The due dates of those estimated payments are April 15, June 15, Sept. 15, and Jan. 15 on an annual basis.
Photography services are subject to sales tax in the state of Pennsylvania. Without seeing the letter you received, I'd expect that it may be referring to sales tax instead of personal income tax. Photography services and the product produced became fully taxable in Pennsylvania starting Aug. 1, 2016. Therefore, you should be charging 6 percent to customers for your services. That tax is remitted on either a monthly, quarterly, or semi-annual basis. The Pennsylvania Department of Revenue website service E-tides is available for calculation and remittance of your sales tax returns and payments.

Again, additional consultation may be needed in this instance.

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Answered by: Ryan Raffensperger, CPA, is with Raffensperger, Martin & Finkenbiner LLC in Gettysburg, Pa.

The responses are based on the limited information provided by the questioner and apply the laws and regulations at the time of posting. Other options could arise as rules and regulations may change over time, including but not limited to the passage of the Tax Cuts and Jobs Act of 2017. They are intended to provide general information, not specific accounting or tax advice; they are not intended or written to be used and cannot be used for the purpose of avoiding or evading taxes or penalties under the IRS code or regulations. Views expressed do not imply an opinion of the PICPA, its officers, directors, employees, or members.
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