With Freelancing world rising steeply every year, there are growing questions of Freelancing and other online earning's tax filings. These days the Freelancing starts at an young age as everyone prefers to be their own boss and work on their own terms. These individuals are not great businessman's but still are capable of earning more than those highly qualified geeks working 24 hrs on a per day basis. So for those who don't know about taxes associated with their Online Earnings then let me tell you, that everyone who is earning online through Freelancing or other online activities needs to pay taxes irrespective of being a self employed person or a working person.
The income that arrives from freelancing is not taxed in advance, so the self-employed freelancer is responsible for submitting income information and tax money to the IRS or the tax department of their country. Since all the income generated online are directly linked to PAN , so no one can escape the tax filings, so better start keeping track of your work and keep hard-copy proof of your online received checks and if take printouts of your online accounts showing the cleared payments(invoices,etc) and fill up all those 1099s, W-2s, etc. Since taxing also includes paying interests so pay on a quarterly basis to avoid those high interest rates. If you can't keep track of all these tax information's then hiring a tax adviser is a good idea as they can take care of all your tax returns.
Do we need to pay tax ?
Yes! Escaping income tax is a crime so be aware.
I am just 19 or below , do I need to pay tax too ?
Yes ! Anyone who earns online irrespective of age has to pay taxes. Minors can attach their income tax filings with their parents tax filings and in fact is a regular procedure but in cases when the amount exceeds a certain limit , then minors need to file their individual tax reports.
- To keep track of your Online earnings watch the below video.
- To learn how to pay taxes on your Freelancing works read this .
Happy Earnings ! :) Sad Tax paying ! :(