Wednesday, April 14, 2010
Net profit is subject to tax.
I have a question. I teach Metal Clay classes (making fine silver jewelry from silver in clay form). I charge $85 fee which includes $35 for supplies. What portion of this do I have to pay tax on as income. I am assuming I would just claim $50 as income but I wanted to be sure.
An indie claims all income she receives. That's gross income.
Then she deducts all expenses.
What remains is net income or profit or loss. It is that amount on which you are subject to tax.
Here are more posts on income .