Should I declare non-translation income?
Thread poster: Claudia Alvis

Claudia Alvis  Identity Verified
Peru
Local time: 22:59
Spanish
+ ...
Apr 11, 2008

I am registered as a translator but last year I also performed other services not related to translation in any way. The amount is very small, about $250 for just one client. And for another client, the amount was over $600 but no 1099 form was issued. Should I declare that as income? Both of them? How do I do it? I'm meeting with my accountant tomorrow but I need to know if I should print that out separately or with the rest of my invoices?

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Ivana Friis Wilson  Identity Verified
United Kingdom
Local time: 04:59
Member (2008)
English to Danish
+ ...
Part of business could be this other service Apr 11, 2008

I think you can just add the industry to the description of your existing company (if you have a company), for example "Translation services and teaching" (put in the name of your other service instead of teaching).

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Andy Lemminger  Identity Verified
Canada
Local time: 21:59
Member (2002)
English to German
Yes Apr 11, 2008

You can be pretty sure that the IRS also wants to tax non-translation income

Andy

www.interlations.com


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Yvette Neisser Moreno  Identity Verified
United States
Local time: 23:59
Spanish to English
+ ...
Yes, all earned income is taxable Apr 11, 2008

Andy Lemminger wrote:

You can be pretty sure that the IRS also wants to tax non-translation income

Andy

www.interlations.com



Exactly. The IRS doesn't really care how you earned your money, they just want to know how much you earned, and they want you to pay taxes on it. I don't think it matters if you bundle it with your translation invoices or not. Just bring everything to your accountant and he/she will take care of it.

And I've asked the IRS about the 1099 issue. Of course, they want you to record all earnings regardless of whether there's a 1099. I suppose that technically, if there's no 1099, they wouldn't have any way to know that you earned that money, but the law is that you record your total business income with or without 1099.

I don't see any need to change the name of your business or profession based on this small amount of non-translation income. If it's for your translation clients, it's all part of your business, right?

[Edited at 2008-04-11 18:03]


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xxxPeter Manda
Local time: 23:59
German to English
+ ...
other business Apr 11, 2008

There is a line on Schedule C that allows you to enter income from other business and sources. There is also a similar line on your 1040. You (your accountant) has to decide how to classify the income. Under IRS rules you are required to declare any income, including dividends, earned interest, income from passive activities. Direct income such as what you describe also needs to be reported - even if the source of the income is illegal (which I am not assuming is the case in your case; but the point is, if it's "income", then you have to declare it - note that "income" is defined in the US IRC [internal revenue code] and if you are curious you can look up the definition either through www.irs.gov ...

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LegalTransform  Identity Verified
United States
Local time: 23:59
Member (2002)
Spanish to English
+ ...
See this site Apr 11, 2008

See this link:

I am a freelance translator. What is considered income for me?
http://www.johnmatthews.us/Freelance%20Translator's%20Income%20Sources.pdf

at this site:
http://www.johnmatthews.us/Tax%20Tips%20for%20Translators.htm

This is great site offering tax tips for translators in the US written by a former H&R Block employee who prepared actual tax returns for freelance translators. There are actual copies of a translator's tax returns. The author provides a complete scenario involving the work of a fictitious translator (ex. Mary earns 55,000 and pays $15,000 in income tax without deductions and $10,000 with deductions). The articles originally appeared in the ATA Chronicle.




[Edited at 2008-04-11 18:33]


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Paul Merriam  Identity Verified
Local time: 23:59
Member (2008)
Russian to English
+ ...
Yes Apr 11, 2008

Claudia Alvis wrote:

I am registered as a translator but last year I also performed other services not related to translation in any way. The amount is very small, about $250 for just one client. And for another client, the amount was over $600 but no 1099 form was issued. Should I declare that as income? Both of them? How do I do it? I'm meeting with my accountant tomorrow but I need to know if I should print that out separately or with the rest of my invoices?


Your accountant can give you better guidance. However, you should print out anything that you think the accountant might need. (If he/she doesn't, you can always shred the printout.)

Many businesses obtain money from more than one source. I don't see a need to have a separate business for the services that cost about $250. The reason your business is asked to choose a category is so that the IRS can do statistical analysis. If the total amount in the translation industry is $250 more than it otherwise would be, I suspect that's compensated for by some copywriter who did some translation.

As for the 1099, that's the client's problem, not yours. You must declare the income, whether or not a 1099 is issued.


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Claudia Alvis  Identity Verified
Peru
Local time: 22:59
Spanish
+ ...
TOPIC STARTER
Thanks Apr 11, 2008

Thanks for your replies, they were very helpful.

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