Yes. People who are considered self-employed must pay taxes on their earnings no matter how they get paid-either by check or through direct deposit. For many people, the most logical way to get paid is to be paid with a payroll check. However, if you're self-employed and receive your income in some other form (e.g., via PayPal), then you need to know that these funds will also be taxed and may result in an underpayment of estimated taxes owed when filed at tax time come April 15th for the prior year! If this includes you, don't worry-we've got some tips for handling your taxes as a freelancer below!
AUTHOR: SAMUEL CATT
18 October, 2021
The answer to this question is more complex than "yes" or "no." Based on the nature of their work, freelancers pay taxes not just by withholding funds from paycheck but also by filing Quarterly Forms 940 on their own. Be mindful that some information about freelance writers is readily available, while there are some topics that are not specifically addressed in the literature. Freelance writers often do not have taxes withheld 100% of the time due to the unpredictability (i.e., fluctuations) of their income and tax bracket.
AUTHOR: TYLER ANTES
18 October, 2021
The short answer is yes, because the IRS considers all cash work for hire taxable. And IRS gets paid to find people who are hiding money from them. So if you want someone to stay happy, be compliant with the law. The Internal Revenue Service estimates that about 12 million Americans are being illegally self-employed by pretending they have employees while really just taking cash payments for their services without reporting income or paying taxes annually.
AUTHOR: LARRY GRUMBLES
18 October, 2021
Basically, if you make more than $400 from writing in a year, the IRS considers you a professional and deems it necessary for you to pay self-employment taxes. Yes--everyone is required to declare their income as either as dividends or as self-employment income on their tax return. The type of income will determine which form(s) we need to file and what deductions we can claim. You can also look into taking advantage of lower reporting thresholds if your freelance work doesn't generate much annual revenue. Your account rep would be happy to schedule a consultation with an advisor to ensure that this applies and all administrative formalities are properly satisfied by the deadline each year!
AUTHOR: LAWANDA WIERS
18 October, 2021
This question would be more appropriate for an individual's accountant. I cannot say whether or not freelance writers pay taxes, but I have read elsewhere on this site that if one is being paid under the table, they are expected to pay the taxes themselves. If it is a legitimate contract with a business to provide services, then tax should be taken out so that they do not go unpaid by either party. I encourage you to contact your accountant for specific advice in this regard. Edit 4-1-16: Information reworded in response to questioner's feedback (thanks!
AUTHOR: MARQUIS MAYORAL
18 October, 2021
Yes. Freelance writers are considered self-employed so taxes are required, but tax agencies can be lenient if the freelancer has a stable income throughout the year. The IRS website says that all types of self-employment income counts as wages for the purpose of Social Security coverage and Medicare eligibility, no matter what type of business structure is being used. The amount actually tacked on to your taxes may vary based on how many freelance articles you have to pay for in a given year. Simple math will make it pretty easy to account for these expenses with your annual tax return--just keep track of everything! The more accurate you are, the easier it will make filing time come January 1st!
18 October, 2021
Yes. People who are considered self-employed must pay taxes on their earnings no matter how they get paid-either by check or through direct deposit. For many people, the most logical way to get paid is to be paid with a payroll check. However, if you're self-employed and receive your income in some other form (e.g., via PayPal), then you need to know that these funds will also be taxed and may result in an underpayment of estimated taxes owed when filed at tax time come April 15th for the prior year! If this includes you, don't worry-we've got some tips for handling your taxes as a freelancer below!
18 October, 2021
The answer to this question is more complex than "yes" or "no." Based on the nature of their work, freelancers pay taxes not just by withholding funds from paycheck but also by filing Quarterly Forms 940 on their own. Be mindful that some information about freelance writers is readily available, while there are some topics that are not specifically addressed in the literature. Freelance writers often do not have taxes withheld 100% of the time due to the unpredictability (i.e., fluctuations) of their income and tax bracket.
18 October, 2021
The short answer is yes, because the IRS considers all cash work for hire taxable. And IRS gets paid to find people who are hiding money from them. So if you want someone to stay happy, be compliant with the law. The Internal Revenue Service estimates that about 12 million Americans are being illegally self-employed by pretending they have employees while really just taking cash payments for their services without reporting income or paying taxes annually.
18 October, 2021
Basically, if you make more than $400 from writing in a year, the IRS considers you a professional and deems it necessary for you to pay self-employment taxes. Yes--everyone is required to declare their income as either as dividends or as self-employment income on their tax return. The type of income will determine which form(s) we need to file and what deductions we can claim. You can also look into taking advantage of lower reporting thresholds if your freelance work doesn't generate much annual revenue. Your account rep would be happy to schedule a consultation with an advisor to ensure that this applies and all administrative formalities are properly satisfied by the deadline each year!
18 October, 2021
This question would be more appropriate for an individual's accountant. I cannot say whether or not freelance writers pay taxes, but I have read elsewhere on this site that if one is being paid under the table, they are expected to pay the taxes themselves. If it is a legitimate contract with a business to provide services, then tax should be taken out so that they do not go unpaid by either party. I encourage you to contact your accountant for specific advice in this regard. Edit 4-1-16: Information reworded in response to questioner's feedback (thanks!
18 October, 2021
Yes. Freelance writers are considered self-employed so taxes are required, but tax agencies can be lenient if the freelancer has a stable income throughout the year. The IRS website says that all types of self-employment income counts as wages for the purpose of Social Security coverage and Medicare eligibility, no matter what type of business structure is being used. The amount actually tacked on to your taxes may vary based on how many freelance articles you have to pay for in a given year. Simple math will make it pretty easy to account for these expenses with your annual tax return--just keep track of everything! The more accurate you are, the easier it will make filing time come January 1st!