Tax Advice for Freelance Writers

Need tax advice? Are you a freelance writer? Below are answers to your common questions. Use them to clear up your confusion.

1- When do I have to report my income?
If you earn $600 or more freelance writing, you must report your income to the federal government. The business (or businesses) you work for will do the same. As with a regular 9 to 5, you will receive a tax form in the mail to use as you file with details about pay and withholdings.

2- Will my employer send me a W2 form?
Since freelance writers are considered independent contractors, you will receive a 1099-misc form. This form is normally less convoluted than a W2. Why? Most freelance writers don't have taxes taken out of their pay by employers, so you see one lump sum listed as "compensation".

3- What form(s) should I use to file taxes?
This question is probably the most sought out tax advice by novice, freelance writers. As an independent contractor, you must file using a Schedule C. If you're like the average freelance writer that also works for corporate America, you may have to send this form in with a separate1040. Together, both will reflect your total income for the year.

4- Are there any tax discounts associated with freelance writing?
You can claim the same discounts any businessperson would as a freelance writer. If you traveled to get an interview for a story, you can claim gas expenses. Similarly, if you purchased a new computer, you can claim a discount for this piece of equipment. Gather your paperwork together prior to starting your taxes and calculate what you can deduct from your overall income to get the best tax break.

5- Do I have a different deadline than non-writers to file my taxes?
Your deadline will be same as everyone else's - April 15th. The only way you can get more time is to request an extension from the IRS. And, of course, your reasons must be good for them to grant one to you.

6- Can I file online?
You can file your taxes on the Internet. As a matter of fact, this method is a good one for first time filers. You will be prompted by the program you use for specific information, so you file correctly. Visit IRS.gov to find an online tax site. Be prepared to pay a fee since you're using an extra form (Schedule C) to file.

Ready to file? Use the above tax advice for freelance writers to ease your stress concerning Uncle Sam. For more information, visit IRS.gov and select "Businesses" from the tool bar.

Source: IRS.gov