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Do you file taxes for Fiverr?

psychicbunny

By psychicbunny
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psychicbunny Enthusiast

psychicbunny

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Hi guys, sorry if this question sounds stupid and confusing, I’m young and not really sure of this stuff but I have a small job that I work at (besides Fiverr) I work there whenever I want and it’s a small office job.
Anyways I want to file my tax return for it, and I was thinking of whether the IRS will audit me over my Fiverr earnings LOL? This question sounds ridiculous I’m sorry
Most of my friends and family I’ve asked are unsure because they’re never worked online before.

I’ve always thought you didn’t need to because Fiverr was based out of Israel and the laws are different there.

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Guest capitalquality

Guest capitalquality

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Yes, you need to include ALL earnings on a tax return, irrespective of how you earned it or where you earned it.

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joelnorth Rookie

joelnorth

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Yes, you don’t need to charge customers sales tax on Fiverr, but you do need to report the income. Whether or not the IRS would discover that you were making the Fiverr money is another question, but the answer is yes, legally, you need to report it.

I report all mine as I am a full-time freelancer / self-employed so it’s all going through my business accounting.

Be sure you put a % of the income aside in case you need to pay it into the IRS. I’m in Canada but I assume it’s similar. Individual cases will vary, but your employer likely takes tax out of your cheque automatically, whereas your Fiverr earnings will have nothing taken out, so you may have to pay it in come tax time.

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gina_riley2 Veteran

gina_riley2

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Yes, yes, and yes.

All income earned on 5r needs to be reported to IRS. If you haven’t done it in previous years, you can still do it - hire a tax accountant to make sure or to back you up just in case.

You can deduct everything related to freelance work such as the computer you are using - if it’s solely dedicated to 5r, otherwise, it’s partially deductible. Pencils, pens, paper, any other instruments, 5r fees, etc. used or expended for business is deductible.

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writer99025 Collaborator

writer99025

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I am excited…just 10 days to go for the end of the financial year (in India financial year is from April 1 to March 31) and it’s been a great one, my best ever. Will probably relax from next financial year, May 2017 onwards. Have made enough money over the last 3 years, invested everything into long-term bonds at 7% to 8%, so that is earning me a nice passive income as well. I don’t have to work this hard anymore, will relax and focus on exercise and getting fitter. (Oh yeah, you have to pay taxes…I have already paid my advance tax for this year. You must file your tax returns.)

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alliemadison12 Enthusiast

alliemadison12

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All U.S. citizens who have earned over $600 must file taxes, regardless of where it is earned. You don’t want to mess with the IRS! I recommend putting aside approx. 30% of your income for taxes.
Not only is it important to pay taxes to avoid penalties, but it’s beneficial to:
a. start saving for retirement (open an IRA)
b. you’ll have proof of income for whenever you decide to buy a car, home, apply for a credit card, etc.

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cyaxrex Proficient

cyaxrex

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I am excited…just 10 days to go for the end of the financial year (in India financial year is from April 1 to March 31) and it’s been a great one, my best ever. Will probably relax from next financial year, May 2017 onwards. Have made enough money over the last 3 years, invested everything into long-term bonds at 7% to 8%, so that is earning me a nice passive income as well. I don’t have to work this hard anymore, will relax and focus on exercise and getting fitter. (Oh yeah, you have to pay taxes…I have already paid my advance tax for this year. You must file your tax returns.)

Writer, you’ll work until you finally reach the stage where your fingers melt into your computer keyboard.

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alliemadison12 Enthusiast

alliemadison12

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Of course, in my Country we have a special flat - rate (called “Паушални порез”) Tax Rate made for self - employed professionals.

Not reporting it is a legal offense.

And I love keeping stuff legal. It aids quality of sleep and stress elimination.

It aids quality of sleep and stress elimination.

Amen to that! Paying taxes sucks, but not being able to sleep through the night is so much worse.

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uk1000 Grand Master

uk1000

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In the UK, about declaring taxes (to HMRC) , if you have a balance as shown in Fiverr but you haven’t yet asked to send it to another account (eg. PayPal?) do you have to declare it, or do you only declare once it’s received into your other account (eg. I think it gets transferred to PayPal and I think Paypal charges a fee so the amount you actually earn will be less than shown in the Fiverr balance.

eg. if after April 1st I ask for it to be sent to my account (eg. PayPal?) would I only need to declare those Fiverr earnings towards the end of next year (not towards the end of this year)?

edit: I see there’s also bank transfers but I haven’t done that or sent to PayPal yet.

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fonthaunt Proficient

fonthaunt

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@psychicbunny and other U.S. based freelancers: I have filed taxes for Fiverr anytime I earned enough to need to. One nice thing is, if you aren’t sure, you can just use any one of the free tax filing services and fill it out accurately based on how much you made and then it will ask you to enter the things you bought for your business, home office expenses (internet, etc.) and those are tax deductible. I use one called Taxcut.

If you get to the end of the questions and it sees that your income and deductions balance in a way that means you didn’t profit enough, it will tell you that you don’t need to file this year. (Note, the actual income for would be for the previous year. You file this year for what you earned last year.) If you did make enough to file, you can print it out and mail it for free or you ca pay a small fee to file electronically. That way you aren’t out any money for tax software unless you actually owe taxes. It’s important, though. You don’t want to get audited years down the road and owe back taxes.

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djgodknows Contributor

djgodknows

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@psychicbunny and other U.S. based freelancers: I have filed taxes for Fiverr anytime I earned enough to need to. One nice thing is, if you aren’t sure, you can just use any one of the free tax filing services and fill it out accurately based on how much you made and then it will ask you to enter the things you bought for your business, home office expenses (internet, etc.) and those are tax deductible. I use one called Taxcut.

If you get to the end of the questions and it sees that your income and deductions balance in a way that means you didn’t profit enough, it will tell you that you don’t need to file this year. (Note, the actual income for would be for the previous year. You file this year for what you earned last year.) If you did make enough to file, you can print it out and mail it for free or you ca pay a small fee to file electronically. That way you aren’t out any money for tax software unless you actually owe taxes. It’s important, though. You don’t want to get audited years down the road and owe back taxes.

And to add to the use of software, there’s always TURBOTAX (online or offline).

I recall it being free for the first year you file using it, but usually, there are always promotions on them.

Since e-file has been started, millions of people have been filing taxes and easily without the need to go visit a tax expert.

The softwares are quite robust and let’s you file taxes quite easily.

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glitchfool Newbie

glitchfool

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All U.S. citizens who have earned over $600 must file taxes, regardless of where it is earned. You don’t want to mess with the IRS! I recommend putting aside approx. 30% of your income for taxes.

Not only is it important to pay taxes to avoid penalties, but it’s beneficial to:

a. start saving for retirement (open an IRA)

b. you’ll have proof of income for whenever you decide to buy a car, home, apply for a credit card, etc.

All U.S. citizens who have earned over $600 must file taxes, regardless of where it is earned. You don’t want to mess with the IRS! I recommend putting aside approx. 30% of your income for taxes.

Not only is it important to pay taxes to avoid penalties, but it’s beneficial to:

a. start saving for retirement (open an IRA)

b. you’ll have proof of income for whenever you decide to buy a car, home, apply for a credit card, etc.

I thought you had to bring in at least around 11k per year to qualify for tax pay in the US? $600 seems super low. Mayhaps im wrong.

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