This week, I talk about what I’ve been sewing, the benefits of cleaning off my cutting table, a bit about starting up a small business, and review three books.
- Agent to the Stars by John Scalzi
- Poison or Protect by Gail Carriger
- First Comes Love by Emily Giffin
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Pam, just wanted to respond to your questions about receiving payment for teaching classes and whether that payment would be taxable if it is in the form of store credit. Any compensation for services performed is considered taxable income, especially when it is easily quantifiable, such as a specific amount of credit to be used at a store. Even if the store handed you 10 yards of fabric of your choosing, that is easily quantifiable because the price per yard of quilting cotton is easy to obtain, so it would be taxed as income.
More importantly, as an independent contractor, you will be responsible for the income tax on any compensation, rather than the store being responsible for withholding.
Also wanted to quickly mention there were some audio glitches at the beginning of this episode, which I’ve never noticed before on your podcast.
Good luck with your new ventures!
Another great episode! Thanks especially for mentioning the Craft Industry Alliace- I’m going to look into it, too!
Thanks for the review of Agent to the Stars! I bought that when it was the daily deal but haven’t gotten to reading it yet. Also — I am seriously in awe of your one-pattern-per-month publishing goal. One of my personal goals this year is to publish a couple of embroidery patterns. I’d planned on having the first one out by June, but that didn’t quite happen.
About compensation for teaching. You will have to pay taxes for cash, store credit or goods paid to you as compensation for teaching. As the feds do not accept quilts, fabric or gift certificates I always stuck to getting paid in cash. I also chose cash because I chose more wisely when spending my hard earned $$$$.
I had lots of friends that got paid by the yard when they worked at quilt shops because they thought they were getting more compensation figuring minimum hourly wage vs cost of a yard of fabric. If they actually did the math the cash was still a higher rate.
Have fun Saturday! Wish I could be there.