Taxation and Freelance Work

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What do I need to know about taxes and freelance work?

Taxation and Freelance Work

If you are a freelancer, you are considered a sole proprietor. Other terms commonly used include self-employed, independent contractor and freelancer. Income and expenses related to your self-employment is reported on your 1040 Schedule C. Your clients may send you a Form 1099-MISC in January or February to report total payments for the previous year. Form 1099-MISC is like a W-2. It is used to report income you received for freelance work. The IRS also gets a copy of your 1099s.

*It's a good idea to keep any income not related to your freelance work separate so there is no confusion during tax time.

   

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Lynne Christen