Working as freelancer with two partners. How do I report the income for tax purposes in India?
How do freelancers report taxes?
To report your freelance income on a tax return, you must fill out Schedules C and SE for Form 1040.
- Obtain a copy of IRS Schedule C (Form 1040), or Schedule C-EZ, if applicable, Schedule SE and Form 1040.
- Determine your total freelance income by totaling all income for which you received 1099s.
How do you prove your income if you get paid cash?
To prove that cash is income, use:
- Invoices.
- Tax statements.
- Letters from those who pay you, or from agencies that contract you out or contract your services.
- Duplicate receipt ledger (give one copy to every customer and keep one for your records)