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US Freelancers, report income before or after fees?

Discussion in 'BlackHat Lounge' started by freckletone, Dec 27, 2016.

  1. freckletone

    freckletone Jr. VIP Jr. VIP

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    For example, say i made $100 and was charged $10 in fees from a freelancing service that I use... so I only got $90...

    Do I report my actual income as $90 or report it as $100 with $10 as the expense?

    It seems as if $100 income would not be correct as I'm not even seeing all of it.

    Is it fine to report income as $90 and then no expenses?

    btw, i earned a lot more than $100, i am just using this as an example. thanks
     
  2. meep

    meep Newbie

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    You'd report the entire $100. Paypal fees can be counted as business expenses, which will reduce your tax liability to an extent.
     
  3. daStick

    daStick Newbie

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    Typically you'd report it as $100 and then deduct the $10 from your taxes - however if the freelancing service sends you a w9/1099 for $90 then you'd report $90