Do you pay taxes?

[lolacey]

I’m making enough on fiverr to have to give up a hunk of my money to the government, haha. How does fiverr handle this exactly?



Sheriff’s Note: Questions regarding taxes should be taken to a qualified tax accountant or preparer in your area.

[genuineguidance]

When I signed up, I was not asked for my fragglesrock so that Fiverr could send a 1099 at the end of the year. Now, this does not mean you do not have to claim the income you make on Fiverr, it just means that they probably do not report/send 1099s to the US government stating what you made. ( I believe they are a company in Israel ) Now, where you may run into issue is with PayPal as they now send a 1099k if you have 200 transactions AND over 20k in sales. This was implemented in the last couple years to crack down on Ebayers and the like who were selling and not claiming their income.



So, in essence to your question, “How does Fiverr handle this?” Fiverr does NOT handle this — it is up to YOU to file and claim what you earned here. It is going to be much more complicated than if you were filing having a vanilla type job that sends a W2. You would need to file a 1040 and a Schedule C to show your deductions. Most tax software (the product that offers the tax forms for the self employed which can run about $60 to $100) can walk you through the process of filing. It is well worth it to buy this software ( you can deduct the purchase price) or have an accountant do your taxes.



Depending on how much you make, what status you file and how much you have paid in during the year, figure you may have to set aside about 25% of your income from Fiverr to pay your tax bill. That’s a generous estimate, but one that can keep you ahead of the game all year. Technically, self employed people are supposed to file quarterly estimated tax returns. This is where you “guesstimate” what you will be earning, and then you pay every 3 months so that you don’t have a huge bill in April. If you do not file quarterly, you will have a penalty fee you have to pay.



Whatever you do, do not try to weasel out of reporting your income if you are in the US. They will eventually find a paper trail and find you. Then, the fun begins when they levy your bank account, put a lien on your property and garnish 100% of your self employment earnings to collect what you owe. LOL

[genuineguidance]

Not sure why I cannot edit my comment…but that word that is gobbledygook… “Sfragglesrock” should read social security number… LOL Weird! :-))



Sheesh, just found the EDIT button.

[adnagam]

I BARELY received over $20k in Paypal AND had over 200 transactions so I received the 1099-K this year. Not a happy camper, but I knew it was coming. I typically withdraw my earnings once a week for organization sake and may do it less frequently this year to come in under the 200 transaction mark.

[lolacey]

Oh no, of course I can’t imagine not filing for taxes. I’ve been putting 10% of everything I earn from fiverr into savings.



@adnagam @genuineguidance : Did you print out your 1099-K yourself, and file it yourself? Or does paypal send it to you?

[mannyzie]

Hi, I made 50 dollars do i have to put that on my taxes that i file this year since i just made it or will at the end of Feb if the seller pays me the rest.



Sheriff’s Note: Questions regarding taxes should be taken to a qualified tax accountant or preparer in your area.

[victoria91]

@mannyzie only money that was made in 2013 will be filed on your taxes. All money made after December 2013 goes on your next years taxes.

[pinnz19]

Hi,

I made about $300 over 5months of the 2013 year. When claiming this, could I also include my Internet bill and have a portion of it tax deducted as part of operation of Fiverr?