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Freelancing - Asking for invoice for tax purposes?

Discussion in 'Black Hat SEO' started by creativepotion, Aug 30, 2012.

  1. creativepotion

    creativepotion Regular Member

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    I outsource a lot of small gigs here and there to freelancer outside of US.
    They dont have a company or anything. Most gigs and deals are sealed over SKYPE.
    Some transactions are even done on BHW here.

    When the job is done; I just send them payment via Paypal.(just like many of you do)

    I am wondering how I can request invoice for such expenses in this case?
    Its mainly for bookkeeping and tax purposes. So I dont get screw over by IRA if anything.

    Any inputs will be appreciated. Thanks in advance.
     
  2. SEOWhizz

    SEOWhizz Power Member

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    Just use Paypal invoices in your transactions:
    Code:
    https://www.paypal. com/webapps/mpp/invoicing-bensteps
    https://www.paypal. com/webapps/mpp/online-invoicing
    (remove spaces)
    Do you mean IRS? Where I am, IRA = Irish Republican Army!
     
  3. slimatk

    slimatk Junior Member

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    As above, PayPal has the facilities to sort this. If you have any direct bank transfers to invoice PM me and I can guide you in the right direction. It's relatively easy....
     
  4. slimatk

    slimatk Junior Member

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    Yeh if the IRA want to see your invoice then youre in a lot of trouble and my help ends here
     
  5. CoyoteAssassin

    CoyoteAssassin Elite Member

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    Keep in mind that you can populate an invoice for your client and send it to them. Which is basically what PayPal does. Therefore, if they do not send you one, you can create it on your own.

    The other side is most likely not going to report their expenses to the IRS unless it is more than $600/year in services. They will still deduct it though.
     
  6. creativepotion

    creativepotion Regular Member

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    Thanks for the help guys. Appreciated.
    LOL. i meant IRS, not IRA (sorry, was typing a little too fast, A is just beside S on keyboard.. so yea)

    Sorry, I am quite new to this.
    So basically, after the freelancer finished his/her tasks. I pay them via Paypal.
    (I dont think they even care to send me an invoice for payment anywyas)

    I then ask them for their name/company address, and populate the invoice for my own records?
    No one is gonna see these invoices anyways, except for my bookkeeper or IRS (if i get audited)
    These invoices are just for records only, right?

    Hope I am right there. Thanks again
     
  7. Pilot

    Pilot Junior Member

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    Yeah, you don't need any input from the freelancer. Paypal provides all these documents for you and they should suffice for IRS purposes.
     
  8. creativepotion

    creativepotion Regular Member

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    That is only if the freelancer send me an invoice and I pay?
    Unfortunately. most just want me to pay them directly without having them sending me an invoice.
     
  9. creativepotion

    creativepotion Regular Member

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    Bump. Would like to know more on this.
     
  10. creativepotion

    creativepotion Regular Member

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    Bumping again. Thanks