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| Re: Tax question -- whole package price or breakdown? |
States vary, sometimes wildly.
Illinois may be unique: There is a special clause for photographers by which the tax is calculated on only 10% of the total...as long as the fee is not itemized. If the fee is itemized (or if any of your documentation breaks out the components of the fee), then the tax is calculated on the tangible products (Illinois does not tax services).
Thus, the state presumption is that only 10% of a photographic fee is tangible and taxable. In cases where the tangible item would be more than 10% of the fee (as it might for an expensive album or frame), there is less tax to be paid if the photographer charges a flat, non-itemized fee.