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Again as with it is for your commerce, you should keep a record of all monetary aid paid, given, and your school expenses such as books and supplies so that you can accurately report this on your taxes. Your clients may ask you for your in order so that they can send you a 1099 form in February. This is often considered similar to a W-2, however, does not report the same information. If any of your clients paid you more than $600 during the tax year (often from January 1st to December 31st of the tax year), then expect a 1099 from your clients. You will know in advance if they send you a 1099, because they will need your Social safety figure in order to file this information. All that shows on a 1099 is the amount they show that they paid you during the year under “non employee recompense.” Check to verify that this matches your records, which should be as easy as adding all of their payments they sent to you. The 1099 they send you is also sent to the IRS, but it should also be included with your 1040, Schedule C and Schedule SE, along with all of your other tax forms. Although not as common, there could be a situation where you paid another freelancer or business more than $600 for their services during the year. If this is the case, then you will need to send a 1099 to that person. To request their information, you will need to send a W-9, which is a request for taxpayer identification information. Based on how your business is set up and where you live, you may have other taxes to pay as well, such as a state income tax and sales tax. Again, this is where it comes in handy to have an accountant to navigate that as well. You should know if you have to pay taxes in a state income tax and if you have formally filed for a business license, however just because you haven’t done those things doesn’t make you exempt.