Get Smart With Taxes!

Worried about filing taxes? Freelancers and self-employed individuals find filing taxes a big fuss when lack of preparation meets lack of information. It doesn’t have to be this way. Whether you are living inside the United States, or outside, you need to be a law-abiding citizen and do your share. These taxes will be used by your government for your country’s own good, wherever you are in the world.

To plan your taxes means having the right strategies of paying less and getting the right estimates. You need to be in total control of just how much you pay and make sure you pay it before the payment deadline. The following tax tips are applicable to freelancers or contractors in the United States. If you’re not one of them, you may simply get the gist of these tips to guide you in preparing your own taxes in your country.

How to Handle Taxes as a Freelancer?

1. Be Organized

You need to keep track of your freelancing expenses to make sure you qualify for any tax deductions available. These expenses can be anything from rent, insurance, repairs, maintenance, travel, meal, utility, advertising, supplies, and even unpaid invoices. Every penny must be a business-related expense. You may need these information when filing for a Schedule C or your Form 1099. Remember, always keep a detailed log of your income and business-related costs.

2. Save for the Rainy Days

Keep a separate savings account where you will get funds to pay for your taxes. You need to come up with money when April 15 is near. Better safe than sorry!

3. Keep Your Receipts

You’ll be glad that you did! Each piece of what may be trash can just save your neck from the cost of high taxes. These receipts or stubs can help you file a claim for tax breaks so you better have a huge drawer where you can keep them and sort them by the year.

4. Get Professional Help

If you’re not good in Math and you find it hard to compute your estimated taxes, you better get someone who knows a lot of accounting in filing these. Contact your friend to get help or ask for discounted rates from an expert. You can definitely start your search in your local area. The last thing you want is to pay for your estimated taxes… TWICE! Ask help on how to make smaller payments to lessen the burden.

5. Beat the Deadline

The last thing you want is to have the IRS come knocking on your doors just because you stalled. Keep in mind that you will have to pay your estimated taxes four times a year – starting on April 15, June 15, September 15, and January 15. Because of the nature of your work, you may opt to pay installments. Missing your payment schedules or paying less than what you should pay for can have dire consequences. Beware!

Don’t let taxes be your stress by taking the initiative of getting yourself thoroughly informed and paying your share on time. Just because you are called a “freelancer” doesn’t mean you get to earn free money. The last thing you need is to be taken for the biggest surprise of your life. Different countries have different tax laws. If you’re living outside the U.S., you may contact your local tax authority to know your payment schedules and requirements. Pay Your Dues on Time!

Taxes & Being a Freelance Writer

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Something Interesting:

For U.S. providers, here are important links on taxes ( Source: IRS Online )

Self-Employment Tax

Form W-9

Form 1099

Form 1040

Schedule SE / Self-Employment Tax

Publication 535 on Business Expenses

Publication 587 on Business Use of Your Home

Author: Marissa Sayno

Passion and Love for writing makes Marissa continue her quest to inspire readers online and in real-time ( for over 5 years ). Writing has found her when she won a slogan writing contest for a local magazine, and her journey goes on... to the road of discovery.