If I'm doing some freelance design on the side, do I need to charge my customers tax? And do I report that in the additonal wages section of my tax forms?
2007-08-04 06:00:11 · 3 answers · asked by schaller2003 2 in Business & Finance ➔ Taxes ➔ United States
It sounds as though you are providing a service. If taht is the case you do not charge sales tax.
2007-08-04 06:22:33 · answer #1 · answered by ? 6 · 0⤊ 1⤋
That depends upon the state. Some states levy sales tax on services and labor and others do not.
Some, like NY, confuse the issue by levying on some but not others. For example, veterinary fees are not taxed but boarding kennel or dog walking services are.
2007-08-04 15:05:19 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Whether or not sales tax is due on your services depends on your state - some places it's taxable, some places it isn't. Call your state department of revenue and ask them, and if so, ask them what you need to do to collect it and remit it to them
You report your income and associated expenses on a 1040 schedule C, not in the wages section.
2007-08-04 16:54:26 · answer #3 · answered by Judy 7 · 0⤊ 0⤋