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Freelance Graphic and Web Design Tax?

Tax Question - Web Design?

  • I was approached by a local business to to some work for them on their website. I am considering this option, however I am curious as to what, if any tax ramifications I will face. Also, do I need to do any other paperwork? I expect that I will make only a small sum of money ($300-$500) and I seem to recall that there was a dollar threshold ($600 is coming to mind) where it was not necessary to file, but I could be making this up. Can anyone provide any insight or advice?

  • Answer:

    When you receive payment from this company, they should send you a 1099 and the end of the year. However, if you make under the threshold of $600 (you are correct) the company is not obligated to send you a 1099. If this company or any other company were to send you a 1099 for any amount, you are required to report it as income on your return and it will subjected to being taxed.

Jeff M at Yahoo! Answers Visit the source

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Other answers

You must claim ALL income. If it is under $600, the business is not required to send you a 1099. However, you are still required to report the income regardless of the amount. The income would go on Schedule C and you would have to file the 1040 long form.

Wayne Z

If that's your only income for the year, then you aren't required to file if it's less than $400. If you have other income that requires you to file, or if you do file for any reason, then you have to include this income from the first dollar, although if your total self employment income is under $400 you don't have to file a schedule SE and pay self employment tax on it. The $600 is the limit where they are required to give you a 1099 for the amount they pay you. If they don't, then you report the income from your own records.

Judy

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