Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 04-12-2016, 01:51 AM
Junior Member
 
Join Date: Apr 2016
Posts: 2
Is money received for a fundraiser taxable income?

I'm a graphic designer. I'm going with my church as a chaperon to a summer camp in a couple months. I'm going to provide some of my graphic design services as a fundraiser. All of the money except for costs of materials or fees if it's paid for online (if someone pays with paypal) will be given to the church to help the kids or chaperons get to the camp. Is that considered income that I have to pay taxes on?

I'm trying to decide on the prices of the graphic design I'm going to be letting the kids advertise for the fundraiser. If I have to take taxes out of that money I want to plan in advance so I can account for that in the final price like I do with my regular graphic design income. I've been looking online but I haven't found an answer to my specific situation. I want to put as much money towards the fundraiser as I can.

Thanks!



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 04-12-2016, 04:58 PM
Moderator
 
Join Date: Oct 2010
Posts: 5,233
I'm a graphic designer. I'm going with my church as a chaperon to a summer camp in a couple months. I'm going to provide some of my graphic design services as a fundraiser. All of the money except for costs of materials or fees if it's paid for online (if someone pays with paypal) will be given to the church to help the kids or chaperons get to the camp. Is that considered income that I have to pay taxes on?
==========>>I think so ; as a self employer you need to report the income on SCh C and also can claim related expenders on Sch C of 1040. as you know, Generally, an amount included in your income is taxable unless it is specifically exempted by law. Income that is taxable must be reported on your return and is subject to tax; however,
to claim federal tax deductions made to the church or other qualified charitable organization. Itemization on Sch A of 1040 is required for charitable deductions or to claim a church deduction for federal taxes.


I'm trying to decide on the prices of the graphic design I'm going to be letting the kids advertise for the fundraiser. If I have to take taxes out of that money I want to plan in advance so I can account for that in the final price like I do with my regular graphic design income. I've been looking online but I haven't found an answer to my specific situation. I want to put as much money towards the fundraiser as I can===. As a self employer filing SCh C of 1040, If you are filing as a sole proprietor, partner, S corporation shareholder, and/or a self-employed individual, you generally have to make estimated tax payments if you expect to owe tax of $1k or more when you file your return.
If you are filing as a corporation you generally have to make estimated tax payments for your corporation if you expect it to owe tax of $500 or more when you file its return.
You do not have to pay estimated tax for the current year if you had no tax liability for the prior year;You were a U.S. citizen or resident for the whole year;Your prior tax year covered a 12 month period



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #3 (permalink)  
Old 04-12-2016, 06:22 PM
Junior Member
 
Join Date: Apr 2016
Posts: 2
Thanks for the response. I was hoping because the church is a non-profit that I wouldn't have to worry about taxes with it since the money is benefiting the church youth completely and not me. Oh well. I'll just have to raise the prices some.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #4 (permalink)  
Old 04-12-2016, 09:30 PM
Moderator
 
Join Date: Oct 2010
Posts: 5,233
Quote:
Originally Posted by randomchick View Post
Thanks for the response. I was hoping because the church is a non-profit that I wouldn't have to worry about taxes with it since the money is benefiting the church youth completely and not me. Oh well. I'll just have to raise the prices some.
Understandable ;however, the bottom line'd be Generally, an amount included in your income is taxable unless it is specifically exempted by law. To claim taxes on the self employment income you MUST itemize deductions on Sch A of 1040;unless you itemize deductions, you can not claim the charitable contributions to the church.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Received a 1099-MISC for Non Taxable Income TallTexan Income 0 04-01-2016 11:04 PM
Can I claim money received from a parent in exchange for services as self-employment income? horselesscarriage Income 0 03-28-2016 03:18 PM
landlord received money from garnished wages kmccliment Rental Real-Estate 2 01-16-2015 01:30 AM
Where do report Money received from an inheritance? Jaynan2 Income 0 03-27-2010 05:48 PM
Are proceeds received from the sale of inherited property considered taxable income? pinky Income 2 09-13-2007 01:30 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning