One time web project

[drdave]

Hey folks someone want me to do a Website for them. It's just a one time job. Do I just pay the taxes on that one job? I am mainly concerned about having to have a business before I can just do one job or how do I go about paying the taxes for just one job?

Thanks for any help

[LifeinAsia]

If you live/work in the U.S., for some reason the government wants you to pay taxes on all your income. :)

I'd say you don't need to "have a business" (in the sense of filling out paperwork to register your business, etc.) for a 1-time job if it's not a large amount of money. However, if you "do business" then you should really "have a business" according to any local regulations.

As far as reporting your income to the IRS, form Schedule C is your friend- file it with your personal 1040 next year. On the Schedule C you will be able deduct any expenses related to that income.

(NOTE: This info is for U.S. residents- other countries probably have similar reporting requirements. Check with your tax adviser for your particular situation.)

[drdave]

Yes U.S. and will be for $685 and maintenance fee of $50 and other fees to be determined once I see the entire project.

[drdave]

Other fees meaning maintenance/updates of the website

[lucy24]

will be for $685

Last time I looked, anyone with self-employment income (which is what you've got) above $400 has to file taxes. This in turn means you have to use the long form, though this is a bit of an academic distinction if you're doing it online.

The worse part is that-- again, last time I looked-- if you get more than $600 a year from a single source,* then that source has to file a 1099.


* I've got one person who cut back from $50/month to $49/month because we mutually agreed the extra $12 wasn't worth the bother. This is really true.

[drdave]

No problem with filing the taxes I am concerned about having to open a business for just one website.

[drdave]

And yes tmk it is above $400 a year for California

[LifeinAsia]

I've got one person who cut back from $50/month to $49/month because we mutually agreed the extra $12 wasn't worth the bother.

Could've done $49.99/month. :)

[drdave]

What's the logic?

[keyplyr]

If this is a one time endeavor, you do not need to file a request for a DBA ( Doing Business As) license. Just add the amount to "earned income" on yourself. Have payments made directly to your name. Cheaper in the long run.

A DBA a sole proprieter is the highest tax rate with the least write-offs allowed.

[drdave]

Will this be on a Schedule C? Excuse my ignorance. I also have a 9-5 job which I think I file it with.

And one more thing, they are in another state do I add taxes for that state?

[lucy24]

If you're really worried, why not sit down with an accountant or tax lawyer for an hour? All your questions should be cleared right up, and they will definitely charge you less than $685 for the hour.

In general, state taxes are based on where you live or work. The other state will get their money from the other person, who presumably runs a business there.

Yes, Schedule C ("profit or loss from a business") and also Schedule SE ("self-employment"). You fill out one and then transfer the total to the other. Can't remember which order they go in, thanks to the answering-questions-online business. But they're both really short, simple forms*. If you can't figure out a business category, there's always 999999.


* I've never understood the terror some people express about Doing Taxes. You just fill in the boxes one by one: tedious, sure, but nothing more.