 TITLE: How Are Freelancers Taxed? CONTENT: When Do You Pay Freelance Taxes?\n--------------------------------\nIf you expect to owe at least $1,000 in taxes when you file your annual return, the IRS requires making quarterly estimated tax payments. These payments cover both your self-employment and income taxes. At the end of the year, if you wind up owing more than you paid on a quarterly basis, the IRS may slap you with a penalty. That penalty, reflected on your federal tax return, is tacked on to the amount you already owe or comes out of your tax refund.\nAs a freelancer, you're responsible for paying these taxes on your own. Unlike an employer does with paychecks, anyone who pays you as a freelancer does not deduct taxes from the amount of money you receive.\nWhen you earn freelance income, you'll receive what's known as a 1099-MISC form from anyone who paid you more than $600 during each tax year. If the sum is less than $600, the person or organization that paid you isn't required to send a 1099. However, you still must report that income to the IRS. For instance, if a tech company paid you $500 for your writing work over the course of a year, you wouldn't have gotten a 1099 but you would need to report the income. END