What is freelance income reporting?
Freelance income reporting refers to the process of reporting the income earned by a freelancer to the relevant tax authorities. Freelancers are self-employed individuals who work on a project-by-project basis for various clients. They are responsible for reporting their income and paying taxes on it.
How do I report my freelance income?
Freelancers typically report their income on their tax returns using a Schedule C form. This form is used to report income or loss from a business or profession. Freelancers should keep accurate records of all income earned and expenses incurred in order to accurately report their income.
What expenses can I deduct as a freelancer?
Freelancers can deduct a variety of expenses related to their business, including office supplies, equipment, travel expenses, and home office expenses. However, it is important to keep accurate records and only deduct expenses that are necessary and directly related to the business.
What are the consequences of not reporting freelance income?
Failing to report freelance income can result in penalties and interest charges from the IRS. In some cases, it can even lead to legal action. It is important to accurately report all income earned in order to avoid these consequences.
Nick Simpson
Founder @ WorkMade
I started working for myself at 9. My first tax bill showed up at 14. I didn’t understand it, and nobody around me could really explain it. If you’ve been there, you get it. Twenty years later, after creative directing for brands in New York and buying and selling a few companies, I kept seeing the same thing: smart, talented people losing money to a system that wasn’t built for how they work. That’s why I built WorkMade. Not to make taxes “easier to understand” but to make them disappear into the background, so you can get on with your life.