Tax season is coming, how our US freelance translator do tax? Thread poster: Xiangqun (Shawn) Ye
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Hello, fellow translator, I am a new freelance translator who live in the US and have permanent residency. Last year was my first year as freelance and got some real money, part of which come from abroad such as Italy, France etc. I am wondering how do I do tax?
any advice will be appreciated. Thanks
| | | | Gina Centanni 
United States
Member (2008)
Spanish to English
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| Do-it-yourself or tax preparer - it depends. | Feb 9, 2021 |
The most important thing you need to know is that the IRS wants its share of any income you earn anywhere in the world. You'll need to convert foreign-earned income to US dollars. Make sure to use the official exchange rates as they are always more advantageous to the taxpayer. You'll find them on t... See more The most important thing you need to know is that the IRS wants its share of any income you earn anywhere in the world. You'll need to convert foreign-earned income to US dollars. Make sure to use the official exchange rates as they are always more advantageous to the taxpayer. You'll find them on this website: https://www.irs.gov/individuals/international-taxpayers/yearly-average-currency-exchange-rates.
If your taxes are fairly simple you can prepare them yourself using programs like TurboTax, which walks you through the process and costs about $150. If your situation is more complex, i.e., S-Corp, investments, foreign-owned assets, you may want to hire a tax preparer. It really depends on the complexity.
I hope this helps. ▲ Collapse
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Thank you for your answer, Gina, I appreciate it.
I am wondering do I have to submit separate form such as 1099 for each company I work with or just one form for all income I got?
| | | | Gina Centanni
United States
Member (2008)
Spanish to English
+ ...
You don't actually attach and send the 1099s with your tax return but you will have to report each one separately, by issuer and the amount they paid you. As you know, you'll only receive 1099s from your US-based customers. Foreign-earned income is reported on the honor system. I recommend you report it all. IRS audits are not fun!
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thank you, Gina, Good to know. I will never mess up with IRS  )
| | | | Kevin Fulton
United States
Local time: 19:42
German to English
| Consult an accountant | Feb 9, 2021 |
For your initial filing, I strongly suggest consulting an accountant to prepare your taxes. This individual will point out potential deductions and provide tips for future tax savings as well as help you set up your record keeping.. Once you get your bookkeeping properly set up, you might be able to rely on software such as TurboTax.
I would suggest finding an accountant right away, as many are usually fully booked after the first of the year.
| | | | IrinaN
United States
Local time: 18:42
English to Russian
+ ...
| Get TurboTax 2020 for Home and Business, or a CPA for the first time | Feb 9, 2021 |
TT cost is tax-deductible, and it has a special section for foreign income.
Take it from the person who hates and fears numbers and accounting - TT is very simple and straightforward, each year they update it in accordance with every new government regulation. It leads you every step of the way. Once enrolled, it will keep your info from previous years and you'll never have to fill out the basics again. Also, you will be able to compare the results. You can play with it all you want... See more TT cost is tax-deductible, and it has a special section for foreign income.
Take it from the person who hates and fears numbers and accounting - TT is very simple and straightforward, each year they update it in accordance with every new government regulation. It leads you every step of the way. Once enrolled, it will keep your info from previous years and you'll never have to fill out the basics again. Also, you will be able to compare the results. You can play with it all you want, name and then save or drop sample files - nothing will happen until you actually file the final return.
Should you go for a CPA, make sure that the person in knowledgeable in foreign taxation, which is not always the case. IT will be more expensive but the fee is also tax-deductible.
Good luck. ▲ Collapse
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Thank you @Kevin and @Irina
My income is actually very simple, a w-2 and some extra income from translation. I just don't want to pay 500 dollars for H&R block to submit some forms. It take me a lot of spare time to get 500 bucks from translation.
I think TT is a good idea
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