Tax Tips and Reconciliation

Helpful hints regarding tax collection through PhotoDay

PhotoDay Support avatar
Written by PhotoDay Support
Updated over a week ago

Effective January 1, 2023

Beginning January 1, 2023, PhotoDay will collect and remit sales tax for all goods sold. Additionally, studios will be provided a 1099-K through Stripe that reflects their studio sales during the previous calendar year. This change will drastically simplify tax time for you!

If you have never sold photos online, taxes can be a bit intimidating. Tax policy can vary between states, counties, and even districts! Fortunately, PhotoDay has done the research and set up our system to automatically calculate tax amounts and comply with these policies.

Here are a few things you need to know about PhotoDay and taxes.

  • PhotoDay does not report tax on your behalf, so it is your responsibility to file income taxes appropriately for your studio, as well as to comply with any applicable tax laws in your jurisdiction per our Terms.

  • PhotoDay will calculate, collect, and remit sales tax on sales made by studios in conjunction with enacted Marketplace Facilitator, Marketplace Fairness, or similar laws. This article goes into more detail.

  • You will receive a 1099-K from Stripe at the end of the year. Learn more.

  • PhotoDay offers detailed monthly reporting of your Sales, Orders, and Products via the Reports tab in the Studio Panel. Learn more.

  • Surtax is the extra tax that gets applied in certain situations, however it is your responsibility to ensure all tax calculations and payments are correct and paid to the appropriate taxing authority. If your state and the delivery destination zip code has an applicable surtax, PhotoDay will collect this additional tax on your behalf. Reporting this is simple. You can download the detailed “Report” spreadsheet from your Studio Panel, and then sort by surtax to group each amount using Excel, Google Sheets or a similar application.

  • The Net Profit in PhotoDay is to help you reconcile the deposit amounts in your Stripe account. From Stripe, you can reconcile the deposits that were made into your bank account. You cannot reconcile from PhotoDay reports to your bank account. This is because Stripe payment frequencies may not match according to your Stripe transfer settings.

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