Taxes question?

[amjadhope]

Hi all, I really would like to start to sell on Fiverr and I tried to contact them with this question but I did not get an answer.
I am located in the US by the way.
I am wondering if sellers are responsible to collect and report sales taxes from customers or does Fiverr take care of this part?
I know that my own income I will be responsible to add it to my tax return.
But I am confused about the sales taxes part. If anyone lives in the US and sells on Fiverr please share. Thank you.

[lloydsolutions]

Check this out: Fiverr Help and Education Center (Taxes on Purchases).

[amjadhope]

Check this out: Fiverr Help and Education Center (Taxes on Purchases).

Thanks for the reply. I find those pages confusing. I would rather someone share their own experiences. Some websites post one thing but their rules are different.

[looseink]

In Canada, we have to generate a specific amount of revenue before we have to apply sales tax or a GST.

That level is far higher than your average home-based business would total.

As for income tax, I use one business account at my bank for all my freelance work (Fiverr is just one stream of freelance income for me).

So, at income tax time, I gather the 12 bank statements and include those in my other paperwork as they prove my freelance income amounts.

I let my H&R Block person figure out the rest.

[zfjharna]

Informative and need to know more regarding the issue.

[kittimcquiller]

Taxes are the worst. I get it. I will not defend the government or their need to take your hard-earned money. Still, there are ways you can optimize your tax process, which will make your life easier and also save you money. It's like killing two birds with one stone! 1) Create a calendar for when you will pay bills throughout the year. It's easy to lose track of when certain bills come in each month, so by creating a calendar, you can easily track when they are due and cross them off as they are paid. You can also map out any expenses with a specific date they need to be paid. 2) Use an app to track all of your taxes. I use a paystub generator. If you aren't familiar with it, it's a checking account tracker that links to all your financial accounts.

Edited August 10, 2022 by kittimcquiller