freelance taxes

[seeFresh]

So, I have no idea how taxes work, I've made about $20,000 so far this year doing freelance work, some sales as small as $150, some as big as $6000, do I have to claim them all, anyone have any suggestions on where I could get numbers calculated for me? I've put about 1/4 of my earnings asside just in case taxes are that large.

This really sucks though, I've heard about a thing called "self employment" tax and supposedly this is gonna kick my ass.

Anyway, any suggestions on where, or who I could get this done with would be GREAT! thanks

[tg]

there has got to be a tax accountant somewhere in germany.... i would start by talking with someone who is an expert with the tax codes where you live.

[Flash Gordon]

you MUST claim everything that is tracable. If you got paied cash, you still have to claim it (but it can't be traced back). The main things is write-offs, such as your internet bill, anti virus, your new PC, etc.

[hangalot]

you MUST claim everything that is tracable. If you got paied cash, you still have to claim it (but it can't be traced back). The main things is write-offs, such as your internet bill, anti virus, your new PC, etc.
you will be amazed how many things you can write off, travel, accomodation, food... the list is long

[seeFresh]

When I write things off does that mean I don't have to pay taxes on that amount of money?

I live on an american army base (wife is dental specialist in army) and I am an american citizen, so I BELIEVE I have to pay American taxes, but I'm really not sure. I bought a new powerbook, so I guess I can write that off. I still don't understand what write off means though.

[hangalot]

you don't pay tax on that money you spent.

[seeFresh]

SWEET! That's like $3300 alone for the computer!!!!!!!!!!

[tg]

being an american in germany, i don't think you will need to pay taxes (federal), but you may need to pay state income taxes, depending on your state of resedence.... if oregon, then you will need to pay oregon state income taxes even if you are not currently living there.

you may want to check on the web, www.irs.gov, and the the tax site for your state of residence.

[Flash Gordon]

It is just better to pay a professional $100 to do it for you. That fee is ALSO DECUTABLE.

[tg]

maybe some of these links will help with the fed filing...
http://www.irs.gov/businesses/small/international/article/0,,id=97324,00.html
http://www.irs.gov/help/page/0,,id=133197,00.html

[huntygonecharlie]

you will be responsible for paying social security 2x. Normally your employer pays some and you pay some. Since you are self-employed you pay both. You should be able to take business deductions. These might include bills related to operating business (electric, gas, cable modem, phone, mileage, software, other business related expenses.) Go to the irs website and do some searching...opps well since you are in Germany...I am not sure any of this applies...good luck

[tg]

yep... if you can find one there for us taxes, i would take fg's advice.... next year it will be another deduction for you.

[tg]

i would imagine you are correct about the social security bit there hunty.... forgot about the ss bit.

[binkyboo]

Under the Freedom of Information Act, a man with a small business sent a request to the IRS asking if they had a file on him.

The IRS wrote back, “There is now.”

:D