Freelancer

🔻 Tax Tips Every Freelancer Should Know
#Freelancetips

🔻 One huge element of being a freelancer is understanding taxation, and as a business that works with freelance talent, it’s worth giving yourself a quick refresher on some tax tips.

1️⃣Set aside a percentage of your earnings: Don’t wait for tax season to roll around, regularly set aside between 25-30% of your earnings and put it in a specific account.

2️⃣Mark the calendar: April 15th is the deadline for filing taxes as a freelancer or independent contractor.

3️⃣Mark the calendar again: January 15th, June 15th and September 15th are the extra dates to keep track of if you’re filing quarterly, or filing estimated taxes.

4️⃣$400 is the magic number: No matter your expenses, if freelancers earn more than $400 a year, you need to file and pay taxes. Remember, you may still need to file if you make less than this amount.

5️⃣$600+? It’s 1099 time: Each client that pays out more than $600 will need to provide a 1099-MISC or a 1099-NEC form.

6️⃣Fill in the W9: To make things easier, insist that your agency or client gets you to fill in a W9, which will give them critical information needed for the 1099 forms.

7️⃣Keep an eye on the future: Freelancers aren’t given any benefits, which includes pension or planning for retirement. Take it into your own hands by opening a SEP IRA.

💻 Source

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55.6K viewsJul 19, 2024 at 11:20

🔻 Tax Tips Every Freelancer Should Know
#Freelancetips

🔻 One huge element of being a freelancer is understanding taxation, and as a business that works with freelance talent, it’s worth giving yourself a quick refresher on some tax tips.

1️⃣Set aside a percentage of your earnings: Don’t wait for tax season to roll around, regularly set aside between 25-30% of your earnings and put it in a specific account.

2️⃣Mark the calendar: April 15th is the deadline for filing taxes as a freelancer or independent contractor.

3️⃣Mark the calendar again: January 15th, June 15th and September 15th are the extra dates to keep track of if you’re filing quarterly, or filing estimated taxes.

4️⃣$400 is the magic number: No matter your expenses, if freelancers earn more than $400 a year, you need to file and pay taxes. Remember, you may still need to file if you make less than this amount.

5️⃣$600+? It’s 1099 time: Each client that pays out more than $600 will need to provide a 1099-MISC or a 1099-NEC form.

6️⃣Fill in the W9: To make things easier, insist that your agency or client gets you to fill in a W9, which will give them critical information needed for the 1099 forms.

7️⃣Keep an eye on the future: Freelancers aren’t given any benefits, which includes pension or planning for retirement. Take it into your own hands by opening a SEP IRA.

💻 Source

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