You're creating something that needs a lot of artwork. You'll be paying your artist about $2000 dollars over the next two years, so let's say, $1000 dollars a year. You'll be paying them through PayPal.
How much does Uncle Sam take in taxes from you per year? How much does Uncle Sam take in taxes from your artist per year?
>>17095631
Nigger this is /adv/ not /math/
You can look that shit up yourself and use a calculator.
>>17095631
>2 years
>paypal
Why?
>>17095631
if you have any sort of business license is considered a work expense and therefore doesn't factor in with taxes. taxes are for profit.
as for your artist, it depends. most artists are independently contracted and they should fill out a specific form (i forget its name) but essentially it makes them responsible for reporting their earned income. most artists getting paid this small an amount are more comfortable just not reporting it, unless they actively do this for all their money.
talk to your artist and see if he wnats it under the table or not.
>>17095699
The question is, if the project you and your artist work on becomes legitimately successful and popular, how likely is it that Uncle Sam will take notice that you evaded around 400 dollars in taxes?
>>17095732
I don't think you're under any obligation to pay tax on this. You pay the artist, then it's up to the artist to claim it and pay the tax or not. But these laws differ between states so there's no concrete answer.
Overall it's unlikely they'll care either way. Some tax inspector isn't going to be perusing a comic store (or whatever this is about) and see the artist's name and remember how much income that artist claimed and put two and two together; they're just people with jobs who largely don't give a shit.
>>17095732
like i said, its not taxed. that being said, assuming oyu had teh cash and you factored it in to your regular taxes, you could just claim it as any other expense, as part of your profit instead of part of your expenses if that makes sense.
its like spending 2000 dollars on a bed. you already paid taxes if you have the money, yeh?
i dont know your exact situation so theres different ways it can go. if you are talking about say, you own a shop and are paying someone to do graphic posters or decorations, then the 2000 you pay them is an 'expense'. you list it as an expense on your taxes, and therefore it is not 'taxed'.
however if you are just like designing your ow ncomic or video game or website for fun, and you pay someone 2000 dollars for wokr on it, you can simply pay them and list it as any other expense in your life, such as a bed.
>When a business pays an independent contractor $600 or more over the course of a tax year, it is required to report these payments to the IRS on an information return called form 1099-MISC. Businesses use the name, address and Social Security or tax identification number from form W-9 to complete form 1099-MISC.
Is OP a business?
>>17095739
>>17095746
Thanks for the input. I'm a dependent, so I don't file taxes, so I'm not that concerned for myself as for my artist.
One last question. If I pay in cash instead of through PayPal, will that make it easier to remain undetected?
>>17095749
I'm making a website that is artwork-heavy, so probably not.
>>17095760
>I'm making a website that is artwork-heavy, so probably not.
Is it for profit?
>>17095760
extremely easier. you're a little paranoid so dont worry about it. let me give you a for instance:
>if you make an independent film you are generally breaking many many laws to produce it
>yet a big studio can pick it up and buy it and the producers do not get in trouble unless some copyright issue is involved
you really have nothing to worry about. hwen the project goes viral or whatever you can focus on making the rest of your dealings a bit more legit, in the meantime, just pay someone and dont worry too much. give them the independent contractor form if you want.
>im a dependent so i dont into taxes
thats not a thing. even dependents pay taxes. kids with summer jobs arent immune to taxes. if you are generating any kidn of income (The kind used to pay artists for example) then you are supposed to be paying taxes.
>>17095760
PayPal keeps track of things and logs transactions. Paying in cash doesn't. What do you think?
>>17095765
I'm not sure? After paying for the site expenses per month from ad revenue, a third will go to the artist, a third to the site administrator, and a remaining third to be stored and used for the site later, as in, maybe buying more art, money stashed for a rainy day, etc.
>>17095767
Nah, as in, the money is from a parent, who deals with the taxes for how he get his money.
>>17095782
Confirmed my feelings, thanks.
I think I'll end up paying my artist in cash under the table. Thanks for all the help, anons!
