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
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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.

For more resources, check out PICPA’s Money & Life Tips, Ask a CPA, or CPA Locator.

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

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