who pays taxes?
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- Rand0
I don't understand this question. you decide how much you want to charge and then you pay taxes on it, like any other income
- e-pill0
OSFA-
as a freelancer you need to take out 40% of your earnings and keep that money in a savvings and dont touch it. the amount taken out is higher than it should but this percentage works great when you need to estimate you are actually over paying taxes [you get the money back] its better to over estimate your earnings than under which leads to being penalized.
TheBlueOne-
you can charge tax to the client by applying for a Tax ID Number.just as you pay tax on clothing you can charge tax on your work, though highly not reconmended to annoy the client with such issues as you can then lose the client. but i have seen some people that do charge tax for their work.
- madirish0
"just as you pay tax on clothing you can charge tax on your work, though highly not reconmended to annoy the client with such issues as you can then lose the client. but i have seen some people that do charge tax for their work.
e-pill
(Mar 6 07, 13:39)this is a bit more tricky than just adding it. it is also state-dependent and in some, illegal. it is also widely varrring if you are working across state lines and how, when this can be done.
generally though, i would agree w/ e-pill as it will annoy the shit out of clients to see this line item, or make them walk away. just roll it into your rate/price and do the math on the backside, everyone will be happier.
- TheBlueOne0
I don't think you can charge tax on labor/service, and any tax you pay (income wise) should be built into your price.
You can charge tax on any material goods you purchase to complete the project.
Correct me if I am wrong on this..
- jpea0
you pay the taxes. have them give you a 1099 before tax time cause you're responsible for it. don't explicitly include it in the bid. it should be assumed that you take care of it and it's a built in cost.
- tkmeister0
eddie, overpaying taxes is a bad idea. why pay more to the IRS while you can keep it to yourself and gain interest. overpaying is basically the same as loaning money to them for 0% interest.
i think you are required to pay the same amount as you've paid previously or the difference needs to be XX%. i forgot exactly how it works.
- Crouwel0
i don't pay taxes.
years ago i went to the taxes guy and said:
"yo, i don't feel like paying taxes man.."and he said:
"aight.."
- TheBlueOne0
Thanks for the clarification jpea
- OSFA0
yeah, I was under the impression that I have to pay them, but wanted to make sure. Should I raise the price of the quote to cover tax money?
what's the easiest way to come up with an amount that will cover any unplanned expenses like last minute imagery, etc. should I detail that on the quote? or just include it on the estimate?
thanks for the help...
- Rand0
One year, almost 20 years ago, I just didn't bother to file
- -sputnik-0
One year, almost 20 years ago, I just didn't bother to file
Rand
(Mar 6 07, 14:08)i'm tempted to do the same thing every year. must be liberating.
- TheBlueOne0
what's the easiest way to come up with an amount that will cover any unplanned expenses like last minute imagery, etc. should I detail that on the quote? or just include it on the estimate?
thanks for the help...
OSFA
(Mar 6 07, 11:11)What I do is spell out quite clearly what is included in the contract price and in plain language detail the process for cost over-runs or extras. Usually a per hour charge, or a cost-plus basis for extra materials.
Put everythign in writing,
- horton0
we charge a services tax here in canada (GST), which is 7% added onto anything i invoice, but sounds like you're talking about covering your income tax, which is just an expense that comes with freelancing. save your receipts and reduce your taxable income come taxtime.
- mrdobolina0
I have an old roomate who didnt file for 3 years in a row. Audits are fun.
- Rand0
it's great, you get to live in fear for years on end. of course, I was so poor then that it hardly mattered
- -sputnik-0
audit shmaudit...you got to stick it to the man ;)
- tkmeister0
you get a 1099 form address to your tax ID. usually i estimate about 35% goes to taxes.
think like this. if you have a fulltime job and getting 100k, that means you are taking home around 65k after tax. would you nagotiate that and ask for 140k so you can take home 100k?
- letters0
federal income tax law? what federal income tax law?
- letters0
oh, and in answer to the thread – build your taxes into your cost. always.