Topic: Must I pay taxes as a freelancer?

As a freelancer must I pay taxes in order to actually be in business? I thought freelancing didn't count? Any advice?

Re: Must I pay taxes as a freelancer?

Yes, you must pay self-employment taxes.

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Re: Must I pay taxes as a freelancer?

Uh, see a tax guy before jumping in?

Yep - not only do you have to pay, you have to pre-pay 4 times a year.

Seriously - find a local tax guy and go let him consult you on the specifics in your area.

Re: Must I pay taxes as a freelancer?

Same here in the UK, if you earn enough, you pay taxes...

Def agree with getting a tax guy, especially for the first time.

Last edited by jpc101 (2008-05-25 11:03:05)

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Re: Must I pay taxes as a freelancer?

What about if friends just gave me some money to do their website?

Re: Must I pay taxes as a freelancer?

If it's income and it's over the minimum ($600?) then it's subject to taxes.  The source or purpose doesn't matter.

Re: Must I pay taxes as a freelancer?

$600 dollars in a month or for one project? Cause if that's the case, then I won't have to do it, lol All together it was like $600 bucks with two different jobs this whole year.

Re: Must I pay taxes as a freelancer?

Again - you really need to see a tax professional to get the correct advice.  You want to make sure you get taxes paid correctly.

This page from the IRS site has some info on who must file:

http://www.irs.gov/publications/p501/ar02.html#d0e585

Last edited by Boyink (2008-05-26 03:45:59)

Re: Must I pay taxes as a freelancer?

Thank for the help guys I will continue to look into this. But also keep your advice and comments coming as I can learn some more through others with the freelancing kind of experience.

Re: Must I pay taxes as a freelancer?

In most cases, clients will list you as an expense on their taxes and the IRS loves to randomly follow up, especially if the client pulls an audit.  I will join my voice to the choir in urging you to find a tax professional to give you sound advice.

That's my 2 cents :^{>

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Re: Must I pay taxes as a freelancer?

Go see a tax guy, Adrian. (I need to, as well.)

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Re: Must I pay taxes as a freelancer?

You also might want to see about becoming a sole-proprietor and see how everything weighs out when compared to that.