So who's legal?

[Shade]

Hi all, this might be a bit of a sensitive question but I was wondering how many folks here are taking care of all of the legal aspects of reading professionally.

By that I mean:

Do you have a business license?
Do you report/declare your tarot income on your taxes?
Are you even allowed to be a professional tarot reader in your area?

I, at this point, am not. Originally I had planned to declare all of my tarot income as "tips" on my taxes. I wouldn't be completely legal with all of the business licenses and whatnot but at least I would be giving a portion of my earnings to the government. As a matter of fact as tips I would probably be paying a higher percentage to taxes than I would if it was declared as regular income. But recently I have become very frustrated with the beuracracy of the several government bodies from the department of motor vehicles to the court system, to a president who is shovelling tax dollars into a war that I think is unethical. My decision: they are not getting any of my tarot money.

Now, my tarot income is pretty limited, just a few local events I read at each year, it's certainly not what I am supporting myself with. I imagine that if I went to doing professional readings several times week I would have to get the business license and start declaring the income as it probably wouldn't take long before I got into some trouble.

So what does everyone else do?

 

[dadsnook2000]

Shhhhh

It would seem obvious as to "why" nobody is answering yet so many are reading. It can be a tough call. You start with a part-part-time hobby that goes to a part-time effort, that migrates slowly to a more serious effort. When do you pass from the point of testing and tying to doing something serious that could require formality in your dealings with legal reporting.

I don't know --- yet. I may face this in a few months or next year. Like you I'd like to know of other's experiences. Dave.

 

[Grizabella]

As far as I know, licensing where I am isn't required for tarot reading. So because I don't think it's required, I don't have a license and don't plan to try to get one.

As for claiming the income on taxes, I've been told by some of my acquaintances around the fringes of the poor and underemployed where I circulate that a paper trail is best to avoid. Checks and such are paper trails, as is too much bookkeeping. Just don't buy a Ferari with your tarot earnings and let your conscience be your guide.

PS My conscience is very loyal to me and doesn't care for our nation's spending choices either.

 

[Grigori]

I have a business license and all the stuff that goes along with that, but there is no tarot specific licensing here. I give receipts and pax taxes etc. but if someone doesn't need a receipt, and I forget to write one....

Pure tarot is a very small part of my income (usually people get a tarot reading along with other things) so could fall under the hobby category, but having the occaisional tarot reading on the books, makes my frequent tarot spending tax deductable which is a very nice thing

One place I work at I get a salary, so that goes straight to the tax department.

The catch with becoming official is is gets expensive. You have licenses, insurance, tax agents, bank fees etc... so you really need to be making decent money to justify that much expense. I think it's good to wait a bit to make sure you can earn enough to support the beurocracy, as well as yourself and your tarot habit

 

[Satori]

Last I knew you could make up to $20,000 and list it as a hobby on taxes--
Then there are business expenses.
New deck purchases, all those coffees you buy customers at coffee houses, and the crystals and candles that are part of doing business...

So if my income actually gets to be rolling in, and I'm making that much on Tarot, well, I'll claim it. Bet your bottom dollar!

 

[Simone]

Here, reading tarot professionally is not an "official" profession. It cannot be declared as such and I guess mostly people don't even earn enough with it for it to fall under some "supplementary income".

Actually, as far as i know, it is not even really allowed to ask for a fixed fee when doing a reading - you'd only be really legal here if you told your sitters "a donation is welcome" without telling them how much (you can however suggest a donation).

So on my flyers, just to make sure nobody pegs me, there is no indication of prices.... not that I have had many clients so far. Maybe i need to start advertising more aggressively

 

[blackroseivy]

My reading is strictly online, which is very easy to just say you're doing hobby-work, or whatever. I have an extra problem in that I am disabled, & extra income will screw with my money - oh, not to mention that "fortune-telling" is illegal in PA. So, right now - since I really haven't even made anything yet - I'm not planning on announcing myself anytime soon. It's not enough to live on & I don't want to lose my money!!

When I have my own website completed, I'll have to have a disclaimer. I hope to someday have a shop - I am HOPING not in PA. I'd like to do it legally somewhere, without the Big Fat Lie "THESE READINGS ARE FOR ENTERTAINMENT PURPOSES ONLY"!!! Anybody else have a BIG problem with this phrase??!

 

[ArcanoMáximo]

The only thing i take in many care is about read to under age people ( here in Uruguay means less than 18 years of age ) at least if the young is not with a mayor relative giving him/her permission and being responsible.
Nothing about taxes, inscriptions or other stuffs cause is not an "official business" neither, luckly!
I guess even so you can be registered in the BPS(Social Prevision Bank)as a "one person company" to assure your social security. But i hope be able to work with my cards to the end of my physical life, have money and not to depend of the State.
AM*

 

[zorya]

i don't make enough to report or pay taxes on. in my state (in the u.s.) it's not required for me to have a license.

to cover other possible legal issues, i've been ordained as an inter-faith minister.

 

[tmgrl2]

Ok...so if you make a lot and don't pay...(LOL) here's what happened to one family of "psychics"

http://www.usdoj.gov/tax/usaopress/2003/txdv03004.html

This site is run by a tax firm...

http://brookwoodtax.com/business_tax_tips/business_or_hobby_rules.htm


Makes some good points about business versus hobby...

There are many factors that are considered.

It doesn't hurt to keep all receipts for Tarot expenditures...books, decks,
business materials.

Even then, if you have a primary source of income and are engaged in reading Tarot a minimum amount of time and the income vs expenditures shows losses from year to year ....i.e., not profitable...

these are factors to be considered.

For me, even though I am beginning to expand my reading...I still take in a very small amount of income....and if the cafe reading expanded, I would still only be reading 3-5 hours a week....I doubt that, with my regular income, this extra income, minus my expenditures....will put my into a "business" category.

I do keep records of what I receive and I accept cash only....so easy to record, and I have a file with all I have spent on Tarot.

Not a simple answer...one each Professional has to examine in the light of all the factors to be considered.

I have a call in to my accountant as well....I won't need to worry this year...definitely ....hobby. Also, I have no intent of working enough to make my Tarot reading a "profitable" effort. At best, it may cover my expenses...although the way I buy decks and books, I doubt it!

Never hurts to keep records and receipts.

Here is another site that discusses the same issues:

http://www.finetuning.com/articles/2345-is-your-hobby-a-business-for-tax-purposes.html



terri