I started on Fiverr in September, passed the $600 mark, and so I know I’ll need to pay self-employment taxes on my Fiverr income. I recently had someone who used to work on filing taxes suggest that I should be able to deduct the 20% commission that Fiverr takes as well as the percentage that PayPal takes out. I’m going to try to do some more research, but does anyone have experience with this? I imagine it depends on whether the IRS calculates earnings based on gross earnings (before all the fees) or based on what I’m actually withdrawing from PayPal. Thanks in advance for any advice!
It wouldn’t make sense to have to pay taxes on fees; I’d double-check that if I were you.