WEB freelancers: how much do you charge for tax?

Discussion in 'OT Technology' started by BoostedBoogie, Aug 17, 2007.

  1. i'm trying to keep things more legit and my clients are starting to ask me to fax invoices in. i have NO idea what to charge for tax, and with most of these clients I make more than $600 every two weeks so i'm pretty sure those invoices will be 1099'd :o
     
    Last edited: Aug 17, 2007
  2. crazybenf

    crazybenf Active Member

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    in state vs out of state, merchandise included, etc all come into play.

    I'm not sure if it's florida laws compared to national, but unless I sell someone merchandise with a service, service isn't taxed.
     
  3. Mikey

    Mikey This one, this form I hold now, so Wide eyed and h

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    Right, you don't charge tax on the service, but the IRS wants to tax you on that service income.

    Usually when doing enough freelance work you can start writing off supplies and such on your taxes. If you are doing the work from your home you can write off a portion of your mortgage/rent even your internet access and electric bills. Any computer upgrades, write it off on your taxes. Or the other way to do it would be to set aside about 30% of each invoice for taxes at the end of the year.

    I was always scared of getting audited so I even claimed income from jobs that didn't request and invoice or send me a 1099.
     
  4. Shagvenger

    Shagvenger All the best go four abreast...

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    I've been worrying about the tax deal since last year...I made a pretty significant chunk of money doing sites and some other freelance design work last year, sent people invoices, but never recieved 1099s. I talked to both the lead artist at my day job (who does tons of freelance work), and my dad (who ran his own business for 15 years), and both of them said that most of the time, if you make under $9000 through freelancing, you'll get away with not claiming it.

    I have to figure out what I'm going to do about the site I'm finishing up now though - it's an e-commerce deal where I'll get 15% commission for every sale. I'm not sure if I'm going to work something out with the company and have them withhold the taxes or if I'm just going to shave off 30% of what they're giving me every month and put it in a savings account.
     
  5. and they let you do that? there are tons of other freelance work I can claim income from, but the clients who hired me for those jobs weren't making money off of the projects I did freelance for them IE a DVD of their son's birthday party or a personal blog with CMS.
     
  6. Mikey

    Mikey This one, this form I hold now, so Wide eyed and h

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    These were actual companies that I was doing e commerce sites for. A few never sent me a 1099 but they were well over $600, so i put them down as misc just in case they decided to write it off on their taxes. I didn't want to get screwed.
     
  7. ahh ok, i misunderstood it the first time.
     
  8. ge0

    ge0 New Member

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    none.. been doing it for 7 years, never had a problem.
     
  9. being paid under the table?
     
  10. eddygordouk

    eddygordouk LOLerskates and ROFLcakes

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    i have to write up my first invoice today and im kinda lost at what needs to be there, anybody have some info/template they can show to get an idea? :hs:
     
  11. ge0

    ge0 New Member

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    Downlaod snappy invoice.
     
  12. ge0

    ge0 New Member

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    I do it as a side job and just have them write checks. Yeah, so basically under the table.
     
  13. basically just your name/company name, address, date of invoice, description of work and the cost, a total, basic stuff like that. doesn't have to be too complicated. they have free excel invoices for download if you google them.
     

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