Mixed income earners often juggle two tax worlds. One mistake in quarterly filing can cause penalties. This topic matters because Form 1701 rules confuse many freelancers. You need to know what income to include and what to exclude.
Let’s make it clear and stress-free.
What Is 1701 Quarterly Filing?
1701 Quarterly Filing refers to BIR Form 1701Q. It is used to report business or professional income quarterly.
This form does not replace annual filing. It is only for income earned from freelancing or business.
Why This Matters to Freelancers
Mixed income earners earn from:
- Employment, and
- Freelancing or business
If you include the wrong income:
- Your tax due becomes incorrect.
- You may overpay or underpay.
- Penalties may apply.
Correct filing protects your income and records.
How to File 1701 Quarterly as a Mixed Income Earner
Follow these simple steps:
- Identify your freelance or business income for the quarter.
- Exclude all compensation income.
- Apply your chosen tax type.
- Complete BIR Form 1701Q.
- File using eBIRForms.
- Pay tax due, if any.
Only report what the form requires.
1701 Quarterly Filing: Are Compensation Income Included?
No.
Compensation income is NOT included in 1701 quarterly filing.
Here is the clear rule:
- 1701Q = business or professional income only.
- Compensation income = reported separately.
Your salary is declared later in the annual income tax return.
Who Should File and When?
You must file 1701Q if you are:
- A freelancer with employment income.
- A sole proprietor with a day job.
- Earning business income during the quarter.
Filing deadlines:
- 1st Quarter
- 2nd Quarter
- 3rd Quarter
Annual consolidation happens at year-end.
Practical Tips for Freelancers
- Separate salary and freelance records.
- Track income per quarter.
- Do not mix forms.
- Review your COR yearly.
- File early to avoid errors.
1701 quarterly filing is simple when done right. Compensation income does not belong there.
Mixed income earners who file correctly avoid penalties. Clarity leads to confident tax compliance.
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