Freelance Tax Question

awelgraven

awelgraven

Well-known member
Now that I'm an adult who has to be responsible, I'm doing my taxes on my own.

My only question is, when does the tax year end? I've done some freelance work throughout last year and into this year, and i'm wondering where to cut off my 2011 earnings? I assume the obvious answer is December 31st, 2011... but I can't find that info anywhere, and I want to be sure.

I got paid for a freelance gig on January 2nd... should I include that in my earnings? Or wait til next year?

Thanks for any help :)
 
The fiscal year for individuals is the same as the calendar year, so for right now, you are only concerned with Jan.-Dec. 2011. January 2012 begins the new year (so start keeping receipts, mileage, etc. now). Taxes are due one day later this year, if I'm not mistaken (April 16th, rather than the 15th, but check that out with a reputable government source).

You may want to consider a good accountant that knows the arts/entertainment industry, or at least freelance/independent business.
You can often get a refund, or a better one, if you have someone that knows what they are doing.

GJ

PS-- The above should not be misconstrued for actual legal or tax advice in any way, which should only be dispensed by proper authorities; i.e., certified tax specialists or attorneys experienced in the field.
 
I second the suggestion re: finding a good accountant. I wouldn't do my own taxes, what with the ever-growing complexity of the code, unless it was a pig-simple straightforward-as-can-be W-2 return, which of course as a freeelancer yours will not be. An accountant can be very useful in identifying legit deductions you missed, or catching audit-flags that you might have inadvertently created. Plus, their fee is a business expense and you can deduct it from the next years' taxes.

With the same disclaimer as Gregg offered (not a tax person myself), you report only earnings received in the Jan-Dec tax year period. Every year I get checks from the previous year's projects, adjusting OT or VT, correcting an underpayment, whatever. Those are all reported for the year received, rather than the year earned.

Good luck!
 
Sad Max said:
With the same disclaimer as Gregg offered (not a tax person myself), you report only earnings received in the Jan-Dec tax year period. Every year I get checks from the previous year's projects, adjusting OT or VT, correcting an underpayment, whatever. Those are all reported for the year received, rather than the year earned.
Click to expand...

Not a tax advisor either, but I believe the answer to the question of when you recognize income depends on whether you keep your books on a cash basis or an accrual basis, which just serves to emphasize the need to get a capable advisor to help you understand the ins and outs of keeping your books and paying your taxes.
 
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