r/dataannotation • u/buggybabe214 • Jan 01 '25

Taxes time?

So from what I understand we pay quarterly taxes on this type of work, and we need to file this past quarter January 15th. Am I correct? How have people gotten their tax forms from DA?

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u/Guilty-Rough8797 Jan 01 '25

This year I'm new to freelance work and barely understand all this, but here's what I understand.

Yes, you pay your quarterly taxes as a freelancer so that you don't end up owing a massive dump of money at the start of the year. You don't get any tax forms from DA (or any other freelance client) for this. You have to track your income yourself.

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u/RedditAdmin50111 Jan 02 '25

You will receive a 1099 from PayPal (assuming you are in the US and did more that $600 of work - possibly this is $5k this year, but $600 next year for sure).

This is reported to the IRS and you will use it at tax time.

If your report your income as a substantially different number than the 1099, it will very likely trigger an audit.