How can I pay taxes if I'm a freelance website designer?

Question

Just got out of college and I'm only 20 years old. I started to do freelancing that March as a website designer with random clients (just like you) and a few small companies and I don't have a real business at all, it's mostly like earning money using my free time. IS IT TOO LATE TO PAY TAXES SINCE MARCH!?! All of the clients are via telecommuting. They all pay me via Paypal or by check via mail. I have never done taxes before (my dad did it for me when I was working at campus as a lab assistant). So to be honest, I never touched tax forms or dealt with them, but since I'm turning 21 tomorrow, I have to deal with them. I plan to travel to Denmark to seek work. I wanted to travel and live temporarily, but I will still work with clients in the U.S. via telecommuting. I only earn like $2000-4000 per month and it really varies depending on the cost of projects I was compensated for. All I know is that if I'm living abroad/travelling, it is possible to do taxes online, correct?

Answer 1

doing your own taxes is pretty easy.  if you are going to be out of the country, then I recomend you buy a TURBO TAX PROFESSIONAL.  Its a great way to educate yourself on how to do your own taxes.

alos, just so you know, you need to pay taxes every 3 months on your net earnings.  to get you started you might want to go to your local tax preparer to help you out.

from denmark you can pay your taxes on line or by mail.

Answer 2

Yes, you file a 1040 showing all your income. Fill out a Schedule C showing all your expenses. You should still be able to file, you just may have some interest and penalites to pay. Do it as soon as you can to keep the penalities down.

Answer 3

You get to estimate and pay your estimated taxes quarterly.  This means you have to do an estimated tax return for the year, and send a quarter of your tax liability in every quarter.  The deadlines are April 15, June 15, Sept 15 and the next Jan 15 for the quarter preceding those dates.

Go to the IRS web site and download Form 1040-ES to see about the estimates.

As far as doing your tax return at the end of the year, there are several free web sites that you can do them on.  The IRS web site will point you at them when it is tax season.

Answer 4

If you are being paid, it's not "free" time.

You are required to file Form 1040-ES four times a year.

Look on the www.irs.gov website and search for "Estimated Taxes".  

The companies that you are dealing with are probably deducing what they pay you as a business expense.  And somewhere there are going to be financial transactions at a bank being reported for someone who has never reported having any income.  If you get caught, there will be the taxes, plus interest, plus fines for failure to pay, plus fines for failure to file (yes, that's a separate crime.)  You can, of course, simply hope you don't get caught, but I wouldn't advise it.  The IRS has seven years to catch up.  That's a long time to be looking over your shoulder.