How do I handle taxes on my freelance invoices?

How do I handle taxes on my freelance invoices?

You need to determine your tax obligations based on your location and the services you provide. Generally, you should include sales tax if applicable.

What if I'm working with clients in different states?

In that case, you may need to consider the tax laws of each state. Some states require you to collect sales tax even if you're not physically present there.

How do I calculate the sales tax to include?

To calculate sales tax, multiply your invoice total by the sales tax rate for the client's location. Make sure to check the current rates.

Do I need to report this income on my tax return?

Yes, all income from freelance work must be reported on your tax return, including any sales tax collected.