As a freelancer, you are considered self-employed and are thus responsible for paying your own taxes. This can be a bit confusing, especially if you’ve never done it before, but don’t worry – we’re here to help! In this article, we’ll walk you through everything you need to know about filing your taxes as a Fiverr seller.
The first thing you need to do is figure out how much money you made on Fiverr last year. This can be found in your account settings – simply go to Billing > Transaction History and then select the relevant year. Once you have your total earnings, you’ll need to subtract any expenses that you incurred while running your Fiverr business.
For example, if you hired someone to design your logo, that would be considered an expense. Or if you purchased any software or tools that you use for your Fiverr gigs, those would also be considered expenses. Once you have your total earnings minus expenses, that is your taxable income from Fiverr.
Now that you know how much money you need to pay taxes on, the next step is to figure out which tax forms to fill out. The most common form used for self-employment taxes is the Schedule C. This is the form that allows you to report your business income and expenses.
You can find the Schedule C form here. If you think you may need help filling out the form, there are many resources available online, including IRS instructions.
Fiverr does not withhold any taxes from your earnings, so it is your responsibility to ensure that you are paying all the taxes you owe. Depending on your country of residence and the amount of money you earn on Fiverr, you may be required to pay income tax, self-employment tax, or both. Failure to pay the correct amount of taxes can result in penalties and interest charges from the IRS or your local tax authority.
Once you have completed the Schedule C form, the next step is to file your taxes! You can do this electronically through the IRS website or by mailing in a paper return. We recommend electronic filing because it is generally faster and easier than mailing in a return.
And that’s it! Filing your taxes as a Fiverr seller is not as complicated as it may seem at first. Just make sure to keep good records of your earnings and expenses throughout the year, so that come tax time, you’ll be prepared.
Conclusion:
Filing taxes as a freelancer can be confusing, but it doesn’t have to be! Just make sure to keep track of your earnings and expenses throughout the year so that come tax time, you’re prepared.
