Question & Answers
I am doing freelancing for two different companies and I have several questions. I deliver for them digital files, such as research, PowerPoints or excel files. Do I need to add sales tax to the invoices? When and how do I file taxes? I have never worked before in California and just started working in October last year.
0 Votes
5545 Views
Follow
8 Followers
8 Followers
0 Votes
You do not need to charge you client sales tax, it does not look like your a retailer. You are an online business that is providing a service, however, your fiscal stationary building is viewed as you are working in another state, so you will not be required to charge sales tax to your California client.
Your company will be responsible for filing a tax return for the sales produced in California at the end of the year. Your company will need to file with The Franchise Tax Board.
Now, depending if your a sole proprietorship, your company will need to file a Schedule C, but if you have a corporation you will need to file other forms with the schedule K, depending on your structure.
I hope this information helps.
Your company will be responsible for filing a tax return for the sales produced in California at the end of the year. Your company will need to file with The Franchise Tax Board.
Now, depending if your a sole proprietorship, your company will need to file a Schedule C, but if you have a corporation you will need to file other forms with the schedule K, depending on your structure.
I hope this information helps.
0 Votes
Your professional services are not taxable in California for sales taxes but your income is subject to income tax for both California and federal income taxes. You will report your income to both governmental bodies at the end of every tax year and you will deduct any expenses related to those services to arrive at a pretax income amount upon which you will be subject to income taxes.
0 Votes
Hello Alejandro
This question is very complicated and the best way to get an answer is to contact the Board of Equalization. My website has the links for the BOE so go to BTIProfessional.com.
Ask them the question and if for some reason, there is a problem, you can reply that you got the info from them and they should stand behind their answer. The answer below is for the income tax not the sales tax. CA likes to tax everything and there are a lot of special rules for sales tax.
In addition to the federal tax you will need to file a CA return for the money earned in CA.
This question is very complicated and the best way to get an answer is to contact the Board of Equalization. My website has the links for the BOE so go to BTIProfessional.com.
Ask them the question and if for some reason, there is a problem, you can reply that you got the info from them and they should stand behind their answer. The answer below is for the income tax not the sales tax. CA likes to tax everything and there are a lot of special rules for sales tax.
In addition to the federal tax you will need to file a CA return for the money earned in CA.
Related Questions...
- Is a credit card statement considered a viable replacement of a receipt for income tax documentation of expenses or are credit card slips still required?
- What year-end tax planning strategies (for individuals and small business) would you implement this year?
- What are the tax changes I need to know about when filing my individual return for 2012?
- Hello, I am a Tunisian national on J1 Visa in the US. However, I have never paid taxes in Tunisia. I did my PhD and was working in France for 5 years paying taxes there. I got my visa in France. Is my tax residency France or is it Tunisia? Because if I claim it to be Tunisia, there is no two years tax treaty. If it's France, what documents I need to claim the tax refund? Thanks
- To my peers, Since schedule A's will be delayed, What are you doing and what are you telling taxpayers?
