The warm weather has finally arrived, and school is letting out. Businesses across the region are hiring seasonal workers, and many people are picking up extra gigs to get them through the summer. A large percentage of the workforce is seasonal or temporary, and many companies rely on revenue from only one part of the calendar year. So, what happens when you need to pick up extra work, including freelancing, during the summer months? It can be tricky to know what to do, when it comes to taxes and financial withholdings.
No matter how you slice it, you must report any and all income that you have, no matter the source. Even in the case of bartering, you should still report the fair market value of the goods or services bartered. For example, if you bartered your freelance photography services for free meals at a friend’s restaurant, you will need to report the value of those meals as income on your taxes. If this sounds confusing, don’t worry- a qualified tax professional will be able to help you!
Summer gigs span a huge range of things, from mowing lawns and babysitting, to landscaping and construction projects. It’s important that you keep record of every job that you do, that you earn income for. Even if you aren’t categorized as an employee, or you don’t receive tax paperwork, it’s up to you to stay on top of your records. Don’t assume you’ll remember what you earned over the summer, come tax time next year, or that your clients/bosses/managers will remember either.
Write down your earned income (bartering income included) for your summer gigs, and remember to set aside some of that income to pay taxes. If you’re struggling to calculate your summer odd jobs, reach out to a seasoned accountant for help today.