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