🔻 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.
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