Private Clients and Taxes

[Kiernansmom]

Originally Posted by SuzieQueue

Is your full-time income from platforms like UpWork or is it from individual private clients? Wondering what would happen if the IRS were to audit your freelance writing business and ask why you weren't charging sales tax on your services. Apparently in Canada, you have to earn over $30,000 from your business before you have to charge taxes.
https://canadabusiness.ca/government...ing-sales-tax/

I work for both writing companies and private clients and make over $30k. I've been doing it for 10 years with no hassle from the IRS so I think I'll be ok. No other writers I know charge sales tax. I just looked it up to be 110% sure and apparently my state doesn't require services to charge sales tax. But maybe some states do.

[beanandpumpkin]

I also make a full-time income and it's 95% private clients. I've worked with an accountant for years and she has never mentioned charging sales tax. In most states, sales taxes do not apply to services (web content, medical/dental procedures, plumbing services, hairdressing, etc.). If you are concerned about it, your best bet is to contact a tax professional to advise you. (I live in the United States, so I cannot make any comments regarding sales tax in Canada.)

[SuzieQueue]

Thanks gang; REALLY REALLY appreciate the replies and moral support.

Think I've been making the whole tax thing more complicated than it needs to be and letting it hold me back. Onwards!!

[beanandpumpkin]

I bet a quick phone call will set your mind at ease (or, if you live in a state that does require sales tax on services, you would likely need a quick meeting) and you can work toward switching over to private clients if that is what you want to do. Good luck!