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Freelance Writers' Taxes: Suggestions For Starters


People often wonder if they are liable for taxes when they are self-employed. Exemption from taxation is not dependent on whether you are a regular employee or a freelance writer. You will have to pay the tax on your income if it is above a certain scale set by your local or country government for the taxation. It is even your responsibility as a good citizen of the country to pay your taxes. You need to confirm your situation by asking the tax department in your area. They can explain better whether you are liable for the taxation or not.

Taxes are of various types and different states and national governments have different policies for taxation. You may not be even liable for taxation if your annual income does not meet the certain criteria. If you qualify and still want to be able to evade taxation then you have to consider your options.

As a freelance writer, you have two types of incomes.

Active and passive

Active income is the one you receive instantly in return of a writing task you do for some client. In this situation, you transfer the copyrights and all the legal rights of this piece to the buyer. They buy this paper from you and hold all the authority for future. You receive instant payment for this type of task.

Passive income is the one that keeps on accumulating on the pieces that you write on the web and publish under your own name. You do not transfer the rights to anyone and the writing stays your property. As time passes and more readers read your paper, your passive income increases.

You do not have to pay taxes on the passive income because it is not with you. You may receive it at some point in your life but do not have it now. Therefore, you only need to pay taxes on your active income.

You can also consider joining a writers association for freelance writers. You will become a member and take part in different activities that they do. Different associations have different causes so you need to join one that has writers who are against paying taxes. They will let you know the tricks and tips to evade taxes.

Remember on a serious note, it is a good thing ethically and morally to pay your taxes to the country where you live.

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