Freelancing and Taxes
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Freelancing and Taxes
I was thinking about finally doing something with my knowledge of php since I need a job for the summer, and I find it annoying to know programming languages and such just to work at some fast food restaurant/department store/etc. The only problem I find with freelancing is taxes; what do I do so I don't get screwed when it come time to file my taxes? I live in the US by the way.
- CoderGoblin
- DevNet Resident
- Posts: 1425
- Joined: Tue Mar 16, 2004 10:03 am
- Location: Aachen, Germany
First of all I know nothing about US taxes, not even sure of UK anymore...
With things like this surely it would be worthwhile to contact a "Tax advisor" of some sort so you can get an "official" position. If you have details from an official source and things go wrong you can always have "evidence" that you were trying to do things correctly (If you save all the correspondance that is).
With things like this surely it would be worthwhile to contact a "Tax advisor" of some sort so you can get an "official" position. If you have details from an official source and things go wrong you can always have "evidence" that you were trying to do things correctly (If you save all the correspondance that is).
I think I'll do that, better to be safe then sorry.CoderGoblin wrote:First of all I know nothing about US taxes, not even sure of UK anymore...
With things like this surely it would be worthwhile to contact a "Tax advisor" of some sort so you can get an "official" position. If you have details from an official source and things go wrong you can always have "evidence" that you were trying to do things correctly (If you save all the correspondance that is).
You'll need to set up a corporation. If its just you working. Then look into doing a sole proprietorship.
http://www.irs.gov/businesses/small/art ... 02,00.html
After you do that, I recommend setting up an escrow account with a local bank to store your tax $$$ in.
http://www.irs.gov/businesses/small/art ... 02,00.html
After you do that, I recommend setting up an escrow account with a local bank to store your tax $$$ in.
Freelancing doesn't have to be a sole proprietorship. It can be a handful of business types.A sole proprietorship is an unincorporated business that is owned by one individual.
Check out:
http://www.irs.gov/businesses/small/art ... 36,00.html
Lawers are great if you can afford them....
- evilmonkey
- Forum Regular
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- Joined: Sun Oct 06, 2002 1:24 pm
- Location: Toronto, Canada
I don't get it...is it a U.S. inside joke?neophyte wrote:You could always be like this guy and not pay taxes. Although I wouldn't reccomend it.
I pay my dues. Render to Caesar....
I was just citing an example of someone who doesn't pay taxes or have drivers license has what not to do. Not that I have anything against Libertarians in general. Ron Paul was a Libertarian candidate for president once. But oops we're waxing political. I think that's forbidden here. So I'll stop now. April 15 coming up!evilmonkey wrote:I don't get it...is it a <span style='color:blue' title='ignorance is bliss'>you</span>.S. inside joke?neophyte wrote:You could always be like this guy and not pay taxes. Although I wouldn't reccomend it.
I pay my dues. Render to Caesar....