So who's legal?

[Sulis]

I've only started charging for readings very recently and I don't make enough to have to pay tax but I do keep a record of my incomings and outgoings, just in case.

In the UK tarot readers don't need to be licensed.

Love

Sulis xx

 

[tmgrl2]

shade...you got the wheels turning...

Now that I have researched "business" versus "hobby" I realized that my cards say:

Professional Tarot Reader...

At present, I believe I will match them to my leaflet which says:

Tarot Readings by Terri

with my full name below...

As long as my Tarot reading falls "legally" into the category of a "hobby," even though I consider myself a professional reader.... I feel more comfortable using the above title on printed matter that gets handed out or displayed.

These are important issues to consider...and very personal depending upon one's financial circumstances and upon one's reasons for reading.

I do not need to be licensed in New York, but I do need to "disclaim" since fortune telling is illegal, so....my readings are for your enchantment, entertainment and enlightenment is what my cards and flyers say.

terri

 

[Shade]

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??!

I have a huge problem with that as well. When I looked into getting a business license I was asked if I "claim to be able to predict or change the future." I found out tht if I want to be a professional reader I have to say "no I do not", call it entertainment, and go from there.

However...

If I am a registered minister (including the Church of Universal Life) I can accept donations and get around the entertainment clause. I know that not all states recognize the Church of Universal Life but they have more info on their site.

It occurs to me that this is a sensitive topic and some people might not be comfortable posting on the internet that they are not reporting income to the government, sory if I freaked anyone out.

 

[Shade]

so....my readings are for your enchantment, entertainment and enlightenment is what my cards and flyers say.

terri

I like your wording, very clever.

There is some difficulty in the bay area about declaring oneself to be a professional tarot reader, mainly because of the large number of extortion scandals we have had.

 

[tmgrl2]

shade...this was a very valuable thread....

When I first saw it, I thought as did dadsnook..."No one will post."

But these are issues that need to be considered. You certainly got me thinking since I am at the point where I am branching out of reading in my home office.

Once we are in public, and have printed material, I think how we present ourselves is important and whether or not we have a "business" or a "hobby" by tax law is important.

At any rate...I have started to keep a "cash ledger" ...and I do have ALL my Tarot receipts from the beginning (not that long ago...LOL).

Again , thank you for raising this sensitive issue and for allowing some information to be gathered and posted.

I'm not thrilled with my disclaimer, but at least I have couched the entertainment in a phrase.

BTW, I have had a lawyer (actually, a judge ) review my flyer and he said that all was in order for me to proceed.

terri

 

[Kahlie]

Hey All,

Here in Holland you do not need a license as far as I know. I am asking for donations on my website, and since I am a full-time student, it's obviously not even a side-job.
I can ask for up to 2000 euro of donations before having to pay for taxes. I am no where near that amount. My website does say I need some extra money for living expenses, which is true.

Kahlie

 

[Ace]

I report all my income, even my cash income. To me it is the price of doing business. I am a grown up and I do business that way.

When I started I made a very minimum amount, but I was hoping it would grow. The tax person I went to thought I was silly to report it, but I wanted to. Later as my business grew, it got to be real money. But even if it is say $5000 a year, report it. Then you can take off milage and tarot decks as business expenses, and feel like you are doing right and running a proper business.
Ace

 

[tmgrl2]

I report all my income, even my cash income. To me it is the price of doing business. I am a grown up and I do business that way.

When I started I made a very minimum amount, but I was hoping it would grow. The tax person I went to thought I was silly to report it, but I wanted to. Later as my business grew, it got to be real money. But even if it is say $5000 a year, report it. Then you can take off milage and tarot decks as business expenses, and feel like you are doing right and running a proper business.
Ace

I agree to the point of keeping records...but I spent over $4000 on tarot books, decks, bags, table and hourglasses since 2/04. This year I made very little and so my accountant has counseled me that right now, this is a hobby, and I believe it will be. $5000 is a different story...

I have a ledger...total spent and income...even my barters.

Also, I have pension and social security...that is what I live on...so this income is merely going against my costs. I would say ...follow the counsel of someone in your area....so that you comply with both federal and state tax laws.



My husband and I had a simple partnership business for over twenty-five years. It was a separate form and filing and there we listed our income and all of our deductions.

My "hobby" is just that right now....a hobby.

My accountant doesn't discuss this with me in terms of "silly" or not, but rather in terms of what the laws require. I follow that.

Over the years, we had two audits by the IRS...in neither case did we have to pay any additional money. Our records were excellent.

terri

 

[Kiama]

Legal? Hell no! I don't think anyway...

I certainly don't declare my earnings. I earn pittance as it is without the tax man getting his hands on it (don't even get me started on this one!) so to declare my Tarot reading income (which isn't regular anyway) would be annoying...

I also don't see myself as a 'business' or as practicing business. Maybe it's because I don't advertise my services, and instead work on a word-of-mouth system?

Kiama

 

[Satori]

Hi Shade,
I recently became a minister with the ULC and I only found out afterwards that this is a benefit of being a minister! So now I"m doubly glad I've done so.
I don't claim my cash income from readings. It is a hobby right now.
If I start to make more money then I will.
After reading thru the thread I think I'll begin to keep a book about my earnings so that I have it on hand in case I"m asked to produce my figures.