Wednesday, January 6, 2016

TPT Tax Time

There's no denying it....tax time is here.  If you are a TPT seller, you may be scurrying to gather info for your taxes.  Don't worry, I am, too :) This will be my first year claiming taxes for TPT.  Thankfully, I was able to learn quite a bit on forums, from my dad (who happens to be a CPA), and a family friend (aka...my accountant).  Am I an expert? NO WAY! Do I know everything you need to file? NOPE, not yet.  Can I share what I've learned so far? YOU BET! 


Invest in hiring a good accountant.  Tax laws vary from state to state, and are constantly changing.  If you're brave enough, you could attempt TurboTax Home & Business. 

Save EVERY receipt.  If audited, you will be expected to pay taxes on items that you cannot provide receipts for.  I have a protective sleeve that I keep in my TPT binder. Whether it's for ink or clipart, that's where I keep all of my receipts.

Keep your info organized in a binder, filing cabinet, or some type of container.

Clipart, fonts, licenses, printers, ink, paper, pens, markers, scissors, business cards, promotional spots on TPT, Facebook Ads, giveaways, sharing resources with your coworkers, computers, software programs, sellers fees, subscriptions, blog designs, Tailwind, laminator and sheets, conference fees, lodging, and mileage.....they are all write-offs

If you are claiming a home office, the space needs to be used exclusively for that purpose. You'll need to know the square footage of that space.  If you plan on selling your house, you will be required to pay an additional tax on the home office once sold.

Whether filing yourself, or with an accountant, I recommend looking over a Schedule C.  You can go to the IRS website, and download one from there.  This form is where your expenses will be itemized.  It helped me tremendously. 

Here are the forms I created to keep track of expenses based directly off of the Schedule C categories. 

https://www.teacherspayteachers.com/Product/TPT-Expense-and-Income-Forms-for-Taxes-2290392


The forms include:
TPT Income - Record your net and gross income each month
Repairs/Maintenance - This is for the repairs/maintenance for your home office.
Advertising - Facebook ads, promotional spots, exhibit displays at conferences, etc.
Charitable Donations - Any donations made from your business
Utilities - Electric, water, phone, trash, internet, and gas. Record your monthly bills.
Equipment -  computers, printers, laminators, software programs, furniture for your home office, etc.
Misc. - Seller fee's, shipping costs, blog designs, giveaways, etc.
Mileage - meetings,  driving to/from stores to purchase supplies, travel, etc.
Materials/Supplies - clipart, fonts, license(s), cardstock, planners, pens, markers, scissors, staplers, ink, business cards, chart paper, etc.

As I mentioned above, keeping yourself organized will save you the headache when it comes time to file your taxes. I will continue to post and share what I learn as I go through this process with my accountant. 


9 comments:

  1. Great post Sarah - thank you for sharing! One quick question - when you say giveaways, what exactly do you mean? Like, if I had a $5.00 product that I put up for a giveaway, I can deduct $5.00? Just curious - thank you!

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    1. Glad you asked. This is something I am trying to figure out. If you want, you can check out the post on my facebook page (Daughters and Kindergarten). Somebody else commented on writing off giveaways, too. After asking my dad, (he's a CPA), I have learned you can only write off the "cost" of the item(s) that is given away; not the "sale price".

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  2. Awesome post! This, too, will be my first year claiming taxes for TPT. Wish I had been better organized, but I'll learn this year. Thanks so much for the tips!

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  3. Thank you for sharing! Great tips!!! It's my 1st year on TPT and I have a lot of work to do to find everything! Next year I'm keeping a binder!!!

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  4. Do you have to be filed as a business to claim?

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