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Freelance designers - tax question...
How do most of you report your taxes for freelance income?
1/2 my projects are personal checks
1/2 are for companies that send the government records that they've payed me.
I make 2000-4000 a year freelancing. Last year I hired an accountant whom I just gave my project details to and he did it for me for $90. I am just curious what others do to keep reporting them simple and keep it low cost. thanks.
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One day older, one day wiser
i dont' really need to do complicated taxes yet..but my family uses Quick Tax and it seems to work great...no audits yet
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general rule bender
i dont make enough to have to pay taxes
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FK M.D.
i use quickbooks pro, and it is very important to track all income, no matter if it's from a personal check or large company that will generate a 1099 for you at the end of the year (the company is required to produce a 1099 and report it if they pay you more than $500 USD). one of the golden rules of accounting is never fudge your income. that's the number 1 way to get yourself in trouble should you be audited. i do all my taxes myself, and have read extensively on the subject. it wasn't much fun but it is good to understand how it works. this way it isn't a black box. if you have specific questions, i'd be happy to answer any questions (with the understanding that i can't be held responsible for any of them if you want the best advice, talk to a tax attorney. i talked to 3 before i felt comfortable with what i was doing.
specifically, i file a schedule c as if you aren't a corporation and are making freelance money, you are by definition a sole proprietor
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