ORLANDO, Fla. (Ivanhoe Newswire) — Being a freelancer has its perks. Working from home, a flexible schedule, and the ability to pick your projects are just some of the benefits. But one thing freelancers typically don’t look forward to is figuring out taxes. Below are some ways to make it less … well … taxing!
A freelance career can offer you freedom and flexibility. But figuring out how to pay your taxes isn’t always easy if you’ve decided to be your own boss. To make tax time easier: estimate how much you think you’ll earn for the year. Then figure out 25 percent to 30 percent of that and divide by four. That’s how much you’ll need to budget to give the IRS each quarter. Saving 25 percent might sound like a lot but you’re paying income tax and paying self-employment tax. It’s a good idea to set up a savings account just for taxes and link it to your checking account, so it transfers automatically. But remember you can deduct expenses, like travel, office supplies, and mileage. Just save your receipts for proof! There are some apps to help you manage your taxes better. IRS2Go lets you check the status of your federal tax refund from your iPhone. TurboTax SnapTax allows you to file your tax return on your phone or other device. With 1040 Tax Calculator, you enter your income and deductions and it calculates what you owe or will be refunded from the IRS.
The IRS’s due dates for quarterly taxes in 2018 are April 17, June 15, September 17, and January 15, 2019. Many first time freelancers overlook these dates and then get overwhelmed with paying taxes and penalties when they file their tax returns.
Contributors to this news report include: Julie Marks, Producer; Roque Correa, Videographer and Editor.
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