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Freelancing is a growing career across various countries. The popularity of this profession type is increasing because people can now earn sitting at home and sell their services to the person who needs them without a hitch. The internet has brought the biggest revolution in the way humans interact, think, act, work or buy certain stuff. You can do almost everything sitting at home and accessing your computer. People who have a passion for a certain skill can easily shift to freelance industry, as there is no one to control and dominate their ideas and kill their creativity.
Even though there are, plenty of benefits of working as a freelancer but there are still some considerations to keep in mind. Whether you are working as an employee or a contract based job, you will have to pay the income tax. This depends on the country you live in. Every country has its own taxes for a certain level of income. You need to pay this tax on the annual income.
The web has plenty of platforms for freelancers. Most of the renowned freelancing platforms already have the W2 tax that will apply to their job. For instance, you have an account on a freelancing platform or work for a certain agency on a contract-based job. If before giving your paycheck they deduct the taxes from your pay then you do not have to pay the income tax anymore. However, if you are self-employed and receive your payment without deduction of taxes then you will have to pay them to the government.
Similarly, if you start your own company even then you will have to pay the tax as a sign of good citizen to the respective government. The tax rate will decide the total amount you will pay by the end of the year. Remember even though some people consider writing as a passion but if it a passion that pays well enough to qualify for income tax then you will have to pay. The tax is applied to the total profit you have at the end of each year. This means you will calculate your total income and take out the expenses to see what you are left with. This amount will be qualified to pay taxes. If you are not making enough money to qualify for the tax then you will not have to pay them.
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