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Do Tarot Readers Pay Taxes? (Key Info)

In the United States, tarot readers, like other professionals offering services, are subject to certain tax obligations.

Navigating the tax landscape can seem daunting, especially for those in professions considered unconventional by some.

However, understanding these responsibilities is crucial for running a compliant and successful tarot reading business.

This guide provides an in-depth look at the tax considerations for tarot readers operating in the USA.

This content is to be considered non-professional advice and is made for educational purposes only. Contact a professional for legal/tax advise.

Recognizing Tarot Reading as a Profession

Tarot reading, whether conducted as a primary source of income or a side hustle, constitutes a professional service.

As such, income generated from tarot reading is taxable and must be reported to the Internal Revenue Service (IRS).

How tarot readers manage their tax obligations depends on the structure of their business and the scale of their operations.

Tax Obligations for Tarot Readers

Self-Employment Tax

Most tarot readers operate as independent contractors or sole proprietors. In such cases, they are considered self-employed by the IRS.

Income from tarot reading is subject to self-employment tax, which covers Social Security and Medicare taxes. As of 2021, the self-employment tax rate is 15.3%.

Income Tax

In addition to self-employment tax, tarot readers must pay income tax. The amount of income tax owed depends on the total income earned from tarot reading and other sources, minus allowable deductions and credits.

Quarterly Estimated Taxes

The IRS requires self-employed individuals, including tarot readers, to pay taxes on their earnings quarterly if they expect to owe $1,000 or more in taxes for the year.

Estimated tax payments are due in April, June, September, and January of the following year.

Necessary Documentation and Record-Keeping

Keeping Track of Income

Tarot readers should meticulously document their income throughout the year. This includes all payments received for readings, whether in cash, via online payment platforms, or through other means.

Deductions and Expenses

Tarot readers can reduce their taxable income by deducting business expenses. These may include:

  • Costs of tarot decks and other supplies
  • Website hosting and domain fees
  • Advertising and marketing expenses
  • Home office expenses (if applicable and meeting IRS criteria)
  • Educational expenses related to improving tarot reading skills

Maintaining detailed records of these expenses is crucial for accurately reporting them on tax returns.

Filing Taxes

When filing taxes, tarot readers will typically use Schedule C (Form 1040) to report their income and expenses from tarot reading.

This form calculates the net profit or loss from the business, which is then reported on the individual’s personal income tax return.

Legal Considerations and Local Regulations

Business Licensing

Depending on their location, tarot readers may need to obtain a business license. Local regulations vary, so it’s important to check with city or county authorities about specific requirements.

Sales Tax

In some states, tarot readings are considered a taxable service. Tarot readers must register with their state’s department of revenue to collect and remit sales tax as required.


Tarot readers in the USA are indeed subject to various tax obligations, from self-employment tax to potential sales tax, depending on state laws.

Properly managing these obligations involves diligent record-keeping, understanding allowable deductions, and staying informed about local regulations.

While taxes can seem complex, especially for those in creative or non-traditional professions, fulfilling these responsibilities not only ensures compliance with the law but also legitimizes and protects the tarot reading business.

For specific advice and guidance, tarot readers should consider consulting with a tax professional who can provide personalized assistance based on their unique situation.