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Do you file taxes for Fiverr?

psychicbunny

By psychicbunny
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gina_riley2 Veteran

gina_riley2

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No, you can get your sister to file tax instead. You don’t have to do a thing. No problem whatsoever. IRS would love that.

, you can get your sister to file tax instead. You don’t have to do a thing. No problem whatsoever. IRS would love that.

I’m going to give you a 💔 on that reply.

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psychicbunny Enthusiast

psychicbunny

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I have literally written hundreds of articles on US taxes for a cloud accounting company. This girl @psychicbunny is playing with fire. She has till April 18 to file taxes, or face the consequences.

what’s a tax help

I have literally written hundreds of articles on US taxes for a cloud accounting company. This girl @psychicbunny is playing with fire. She has till April 18 to file taxes, or face the consequences.

I am don’t worry lol. I have to file them for my office job anyways.

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focus_design Newbie

focus_design

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what’s a tax help

I have literally written hundreds of articles on US taxes for a cloud accounting company. This girl @psychicbunny is playing with fire. She has till April 18 to file taxes, or face the consequences.

I am don’t worry lol. I have to file them for my office job anyways.

in real life Govt do tax all areas of income , i suppose here too.

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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.

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.

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.

Anything over $600 has to be reported, but you’re right, it might not require that you pay anything. When I was making less than $2,000/year as a lifeguard in high school, I do recall still paying taxes.

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glitchfool Newbie

glitchfool

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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.

Anything over $600 has to be reported, but you’re right, it might not require that you pay anything. When I was making less than $2,000/year as a lifeguard in high school, I do recall still paying taxes.

Ok. Thanks for the info. 🙂

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  • 2 weeks later...
eclectictllc Rookie

eclectictllc

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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.

Anything over $600 has to be reported, but you’re right, it might not require that you pay anything. When I was making less than $2,000/year as a lifeguard in high school, I do recall still paying taxes.

There’s 2 issues on taxes that will require you pay: first is Self-Employment Tax. That’s going to Medicaid & Social Security, normally 1/2 is paid by your employer — but since you are your own employer you get to pay the whole thing! (yay?). If your earnings are under $400 (after business expenses) you don’t have Self Employment Tax (but check with your tax professional).

If your earnings are under (some number - I’m head of household so it’s $9K for HoH + me & my kids as 3 exemptions at $4500 each I think – It will vary depending on your marital status and number of people you support in the US) you don’t have to pay TAX on your income, but that Self-Employment tax is figured out aside from your personal exemptions. You need to have Payment Credits in order to remove Self-Employment Tax —otherwise you have to pay it. Having a kid in college (earning me a decent amount of “Earned Income Credit”) has saved me from having to pay out-of-pocket and I even still get a little refund. The refund, however, was reduced by the amount I owe in Self-Employment Tax.

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misscrystal Grand Master

misscrystal

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You need to pay taxes as a self employed person.
Turbotax is good for this. Do not make the mistake of thinking you can not pay taxes and they won’t know. The IRS computers are tied in to every bank.
You do not want to mess with them. And then for this year you should pay every three months as a self employed person. This is how they handle it.

Turbotax will do it all for you.

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alliemadison12 Enthusiast

alliemadison12

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There’s 2 issues on taxes that will require you pay: first is Self-Employment Tax. That’s going to Medicaid & Social Security, normally 1/2 is paid by your employer — but since you are your own employer you get to pay the whole thing! (yay?). If your earnings are under $400 (after business expenses) you don’t have Self Employment Tax (but check with your tax professional).

If your earnings are under (some number - I’m head of household so it’s $9K for HoH + me & my kids as 3 exemptions at $4500 each I think – It will vary depending on your marital status and number of people you support in the US) you don’t have to pay TAX on your income, but that Self-Employment tax is figured out aside from your personal exemptions. You need to have Payment Credits in order to remove Self-Employment Tax —otherwise you have to pay it. Having a kid in college (earning me a decent amount of “Earned Income Credit”) has saved me from having to pay out-of-pocket and I even still get a little refund. The refund, however, was reduced by the amount I owe in Self-Employment Tax.

I’m not the one who needs tax advice, OP is. Not sure why your message was directed toward me.

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huester1 Newbie

huester1

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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.

In the UK I declare it once it has hit my bank account not my paypal account.

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williamz902 Newbie

williamz902

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In Zimbabwe we avoid taxes like the plague… it’s just going to an illegitimate government after all! Payoneers Mastercard is an excellent thing! No need to even have money go through local bank accounts (not that it can anyway, because Zim is apparently sanctioned by paypal)

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  • 4 months later...
nlix85 Newbie

nlix85

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In Canada, yes, under “Other Income”. However, unless you’ve made more than $10,000 per year, you won’t have to pay taxes on it.

I was scouring for a fellow Canadian. This is my first year on Fiverr and was wondering how to go about this come tax time.

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meldawn9 Community Regular

meldawn9

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I was scouring for a fellow Canadian. This is my first year on Fiverr and was wondering how to go about this come tax time.

Scouring? Not sure what you mean. If the Canadian has no other income and has made less than $10,000, they will not have to pay any taxes on their earnings. If they’ve made under $20,000, it’s a minimal amount. But if they’re made over $30,000, it’s best to put money into an RRSP to avoid paying taxes.

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Guest offlinehelpers

Guest offlinehelpers

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Scouring? Not sure what you mean. If the Canadian has no other income and has made less than $10,000, they will not have to pay any taxes on their earnings. If they’ve made under $20,000, it’s a minimal amount. But if they’re made over $30,000, it’s best to put money into an RRSP to avoid paying taxes.

Suggestion - scouring = looking all over the forum?

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  • 7 months later...
bsjprod1166 Newbie

bsjprod1166

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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.

Do you Only have to report income in your tax forms via form T2125 in Canada. I assume fiver takes care of sales tax when customers pay from various countries etc?

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