Do I have to pay taxes on the art I sell?
You must pay taxes on all income, whether through sale of your art or from a regular job. Do keep in mind that you can deduct many of the expenses associated with the art sale, like material costs, transportation, and your studio space.
I sold an artwork through a gallery. Do I pay taxes on the full price or the price after commission?
You will pay taxes on the full price of the artwork but deduct the commission fee on your tax return form.
My studio is within my house which I pay a mortgage on. Can I still claim my house as a deduction on my tax forms?
If your studio is at home, then you can deduct part of the home costs as business expenses. The way that you determine that amount of the deduction is by calculating the percent of the square feet which is used for business purposes only.
I have received a grant/award. Do I have to pay taxes on it?
Aside from scholarships for educational degrees, all grants, awards and other financial support is taxable. Generally, the organization giving the grant will have outlined tax information within the grant.
My art is not selling. Can I get unemployment as an artist?
Artists are independent contractors and not entitled to unemployment benefits. You can only get unemployment benefits if you have been laid off by an employer.
How do taxes work for art assistants?
If you have an assistant, then you should establish a separate account for payroll. This will include social security and unemployment taxes on the Federal and State level. If you and your assistant decide to hold tax fees from the assistant’s regular pay, then you must record this so they can be included in the government’s tax returns every quarter or year.
What costs are deductable as an artist?
All costs related to your business as an artist are deductable on your tax forms. This can include transportation of art, supplies (all tools, materials, model costs, etc), studio expenses, travel costs, and healthcare, to name just a few. You can also deduct 50% of entertainment costs as they relate to your career as an artist, such as the cost of food when hosting an open studio event. Always keep receipts of all expenses.
Should I use an accountant?
It depends. An accountant can help you as an artist because he/she will free up your time and accountants can also pinpoint deductions you may have overlooked. However, accountants can be expensive and may cost you more than you’d save in time and deductions.