There actually IS an NACIS code for Graphic Design!

Cat
Honored Contributor III

Hey guys, I just finished my taxes (there was great rejoicing) and along the way I discovered something that I never knew before. I'm sure most of y'all knew this already, but it was news to me, so I'm sharing it in case anyone else out there is just as ignorant as I was. On Schedule C where you have to enter a code telling the IRS what business you're in, I've always been stumped because nothing on the list seemed to fit. 

Well, this year I decided to dig a little bit deeper and apparently those codes are not something the IRS dreamed up, they're something called NACIS codes or North American Industry Classification System codes - and they're used for all sorts of statistical analysis. AND for schedule C, you're not limited to the ones the IRS publishes in its list - if your code isn't on the list, you're actually supposed to get it from NAICS. So - I looked it up and the code for graphic design is 541430.
https://www.naics.com/naics-code-description/?code=541430

Anyhow, just posting this here in case anyone else is as stumped as I was by that list of codes.

Legal Disclaimer: I'm (quite obviously) NOT a tax expert, so if you should take this little tidbit with a grain of salt and ask a professional if you have any questions.

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Cat @ ZB Designs
4 REPLIES 4

Barbara
Esteemed Contributor

I'm glad they've always accepted my guess-and-by-gosh choice. LOL

Cat
Honored Contributor III

I know, right? My guess is that it's only used to collect data for statistical analysis, so it probably doesn't really matter in terms of your individual return - at least I HOPE not since I've been doing it wrong for years!

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Cat @ ZB Designs

idraw
Honored Contributor

Hi Cat,

Just checked my taxes, back to at least 2017, and the code my CPA used was 454390, which is what I continue to use. Also used last year. I am an illustrator, tho, not a graphic designer. But same difference to the IRS.

Cat
Honored Contributor III

Wow! 454390 is "Other Direct Selling Establishments" https://www.naics.com/naics-code-description/?code=454390

That one would never have occurred to me since I never sell anything directly to a customer - POD is as close as I get. Hmmm.... maybe it has more to do with how your business works?

In the past I always used 519130 which is "Internet Publishing and Broadcasting, and web search portals." https://www.naics.com/naics-code-description/?code=519130

But that made sense for me because my business model used to be maintaining several websites where I gave away graphics & photos for free and all my income came from ad revenue. Of course, time, technology, and Google image search marches on, and that business model fell apart, so I started dabbling in POD, and now it's the biggest part of my business. 

Well anyhow, I wonder how much any of this really matters. Obviously, people have wildly different interpretations of which code to use. Makes me wonder how meaningful any of it really is. 

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Cat @ ZB Designs