Tax on Freelance Income

[Nova]

Now that work from home is more or less legal in some of the countries and in fact encouraged too. I think we may see a chance of getting more taxes on the freelancing. And there is also chance that people who work from home are not going to get the healthcare and other travel benefits that they used to get with the commute based jobs. I think the tax on the freelance income would come in various forms and before it even comes it may go slowly for the first few years and then would be like regular jobs taxes.

I think freelancing depending on which industry it is being done. There is going to be more taxes for it on the bank level too. Like those who work with the foreign clients would surely attract more taxes. as they get the currency conversion. And that would mean a big amount of the money getting the taxes. which is going to be the case for most of the online income too. I heard some of the US based states are also adding more taxes to the work from home and the freelance income. So taxation is going to be there in near future.

 

[Donkiz]

With the effects of the pandemic on the economy it's obvious that governments will go at every length to look for ways to tax more people who they believe are making good money, and freelancers falls into this category.

The best way for government to achieve this is if they can go through the platforms that connects freelancers with jobs like upwork, fiverr, etc to assist deduct some percentage from freelancers earnings and remit to government coffer. Because if they want to tax them at bank level there might not be a way to confirm that a particular payment into an account is from jobs. Also most freelancers might resort to using cryptocurrency wallets to receive payments thereby cutting off banks.

On the issue of benefits, I don't think that it will ever come to a time when people that works from home will be denied health benefits, but I think that most organizations will soon stop paying travel benefits to staff that work from home, which to me is understandable.

 

[Yugocean]

This will depend on the government moods, not everywhere it will be implemented, in our country GST is already implemented (since 2018), even Paypal started collecting it from small earnings. Tax reform may leave small earners, but without reform, already many small marketers and freelancers are paying GST (even through their income is not taxable under GST law), so this makes work from home are paying tax already, other governments may also follow, they too are now out of revenue in many sectors.

 

[cmoneyspinner]

I heard some of the US based states are also adding more taxes to the work from home and the freelance income. So taxation is going to be there in near future.

In the USA, freelancers or those in the “gig economy” are often called “independent contractors” and their earnings are already taxable. If you earned under a certain amount per year (I forget the amount because it changes) there is no need to even report or file an income tax return. But there are some freelancers who make enough money to report it to the IRS. I consider that my late mother was a freelancer. She worked from home as a dressmaker. She never made enough from her home business to fully support us. But it was enough to supplement by father's wages.

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[Alexandoy]

I am also anticipating the taxes on online work. However, the government can only levy a tax when the work is clearly defined and the worker is identified. One example is my online work as a freelancer. I work on forums that pay for posting. How can I be taxed on my income when there is no way for the tax bureau to determine my earnings. Perhaps when everything will be registered in the internet then that will be the time that we can be taxed on our online work.

 

[Yugocean]

Every country will have it's own decision on tax, so all people won't be at same level; yet Income Tax and other tax remains different, freelancer comes under GST in India, as I informed already, this GST isnot really good for all small earners, many small business are hit due to large platform making it mandatory, here small earners are willing for tax reform. As @cmoneyspinner also informed about her status, the same status is what people are forced to pay tax if they want to use large platform. Tax reforms are required for this.