Taxes for U.S. citizen doing remote freelance work for Canadian

Question

I am a U.S. citizen with residency in Florida and am setting up a freelance contract as a sole proprietor with a Canadian government agency. The work will be done remotely from my home in Florida. In setting up the contract, I apparently need to write a quote letter that includes the applicable taxes for this type of work in your jurisdiction.

I guess I have a few questions to clarify

• My understanding is that because I am a citizen/resident in the U.S., and will be performing my work from my home in the U.S., I will only be paying taxes to the U.S.?
• Do I just use Form 1040 Schedule SE to calculate my expected tax burden?
• What IRS tax forms should I be aware of? Just Form 1040 Schedule C and Schedule SE?

Answer 1

Generally yes, you're a US citizen so you're subject to the Federal tax laws. Florida has no income tax for individual tax payers (if you operate as a corporation, then there may be some taxation on the State level as well).

If you operate as a sole proprietor then Schedules C and SE are the relevant ones.

Your expected tax burden will be your individual income tax and your self-employment tax (that's the one calculated on Schedule SE).

Sales tax in Florida is applicable to sale, admission, storage or rental, neither of which is what you're doing, so you will not be subject to the sales tax.