Taxes And Freelancing
Keywords: work at home, freelance
Being a freelancer is a great way to make use of your skills and entrepreneurial mindset. You find the clients and do the work, yet you’re still your own boss. But there are serious tax implications.
Before getting started I will note that I am not a tax professional, and you should get professional advice for your particular situation. However, some tax issues are the same no matter your business.
How you handle your taxes depends in large part upon how you file. Are you self employed, an independent contractor or did you set up a corporation? The self employed or independent contractor will need to fill out a Schedule C tax form while the incorporated business will need to fill out the forms appropriate to their needs.
If you earn at least $400 combined from all sources throughout the year you will need to pay taxes. If you expect to owe at least $1000 in taxes you will need to pay estimated taxes quarterly. These are the two most basic facts you need to be aware of. You can file your estimated taxes by using Form 1040-ES. My personal favorite way to handle quarterly taxes is through https://www.eftps.com/eftps/, which is run by the federal government. You can even schedule your payments in advance if you don’t want to have to think about it throughout the year.
One of the most common questions I see people ask is whether or not they need an Employer Identification Number, or EIN. So long as you don’t have employees, this is more of a personal preference, unless you also do certain things within your business. Many people would rather use an EIN than a Social Security Number for business dealings. These are easily applied for.
The biggest challenge is figuring out deductions. This is one area where I strongly recommend sticking with the advice of a tax professional. The rule of thumb is that if it has to do with your business there’s a good chance you can deduct it, but you need to be very clear on what is for your business versus your personal use. Some items can be partially deducted if you use them both personally and professionally, and there are various rules for mileage and the like.
The home office deduction is a popular one and also a major audit flag, so if you’re eligible to take it make sure you do it right. The space must be exclusively your home office, not for other uses. It’s easy to abuse this deduction, which is why you are more likely to get audited if you claim it. However for many freelancers it is a legitimate deduction.
Running a business has many tax advantages but also many pitfalls. While I can give you a rough idea as to what to expect within an article, overall you need to talk with a professional about your exact situation. A professional can help you find deductions you didn’t know about as well as warn you if a deduction is inappropriate, so long as you are honest with them.
Stephanie Foster started www.find-freelance.com to give people new to freelancing tips on getting started. You can learn about freelance writing at www.find-freelance.com
Previous Articles Highlighter:
Is Your Toddler Being Bullied? (1)
This personality disorders are not "curable;" it's indicative of deeply-in grained personality characteristics. The following is a checklist of symptoms that your toddler may exhibit if he/she is being bullied: - Depression; apathy, irritability, agitation, insomnia, low frustration tolerance, inability to concentrate, bed-wetting and lack of appetite.
Choosing Freshwater Tropical Fish For Your First Fish Tank (2)
These fish on the small side and they like to hang around in the school so they can make a nice display in your fish tank if you have seven or nine of them swarming around together.
Can IOVC, The Internet And The Web Really Save You Money? (3)
Exploring the more advance web services, the following benefits can appear in your business with a demonstrated tangible, return on an investment in your business. A web service allows you to reduce the cost of software development and deployment, support easier application integration internally and externally and provide easier B2B collaboration with your business partners.
Tips On Choosing Frog Bedding (4)
Obviously the more quality the print the steeper the price, and also depending on where you buy it from will also determine how far you reach into those pockets. If you simply want something that just does the job then go for a more simple print and plain duvet covers, otherwise if your feeling thrifty then go for the works, you only live once.
Sizzling Tips For Romantic Bedroom Decorating (5)
Keep the bedroom looking and smelling fresh with flora. Decorating a romantic bedroom is not really as difficult as it seems. With a few things in mind and some key items, you can make any bedroom turn into a romantic abode.
Acne Prevention - How To Make Sure That Acne Doesn't Appear On Your Face (6)
Exfoliation helps to get rid of dead sells from the surface of your face. First your skin will look brighter after using a scrub; second dead sells will not be there to clog your pores.
What To Do About Fleas (7)
Multiple treatments may be needed to remove fleas from the household environment. Fleas are diagnosed by finding either the parasites themselves or black specks called flea dirt (flea excrement) on a cat's coat.
Credit Card Processing (8)
But you will need to have a staff member available at certain times for questions or troubleshooting issues. Dont get left behind by competitors who already have merchant account services and customers who expect them.
Boxes And Packaging (9)
Unless the case is forcibly beaten repeatedly against the wall or run over by a truck several times, it is quite unlikely that anything at all could even possibly happen to what is inside.
How To Cat Proof Your Home (10)
Paint should be removed with extreme caution. Clean-up should be prompt and thorough. Other items containing lead accessible to cats include lead base paint, linoleum, and caulking compounds.
Newer Articles Highlighter:
Why Most Internet Marketing Coaching Sucks (1)
Of course evaluating linking, backlinks, keywords, and other issues may take a little longer but 95% of websites have simple things wrong with them that can make a huge difference in their search engine results.
MLM Success - Why Are You In This Business? (2)
2 Have a Prospect list that you follow up on everyday: The biggest downfall of those who enter MLM businesses is that they stop talking to people or never really begin.
New Spa Treatments You Can Make In The Comfort Of Your Home (3)
The exfoliating properties on Epsom Salt are top-notch. To create a more relaxing effect, mix 2 cups Epsom Salt with 6 drops organic lavender essential oils then massage over body as directed above.
Do You Know What's Going On Your Skin? (4)
1 cup coconut oil or cocoa butter (if you used jojoba above, you will probably prefer coconut oil here) 2 teaspoons grapefruit seed extract (necessary for preservation) 3 teaspoons royal jelly (purchase active, refrigerated jelly from health food stores) 24 ounces distilled water at room temperature (ONLY use distilled for bacterial reasons) In your large, microwave safe bowl, combine the oils and beeswax and microwave on high in small increments (2 minutes each, for example) until wax is completely melted.
How To Create Heavenly Organic Bath Treats (5)
In summer, this means relief from insect bites and allergies, in the winter it means relief from dry, winter skin. This bath is also helpful for soothing chicken pox and measles.
New Organic Skin Care Recipes To Treat Various Ailments Naturally (6)
Recipe #3: Mix 1/2 cup organic oat flour, juice from 1/2 organic orange, and 1 teaspoon organic honey. Apply to face and let sit for 20 minutes. Rinse with warm water.
How To Beautify Your Body With Organic Scrubs When On A Budget (7)
Keywords: organic skin care, organic beauty, organic beauty tips, organic products Homemade organic body scrubs are just one of the many ways you can treat yourself to excellent skin care without spa prices.
Common Reasons For A Bad Credit History (8)
Keywords: bad credit, credit report, credit history, charge off Bad credit seems to creep up on you when you least expect it. One moment it all seems fine and you're doing a good job of staying on top of it, and the next moment you discover that your credit has taken a nasty plunge.
Puppy Training With Patience (9)
When your puppy reaches maturity, it may be a struggle to get him/her into the vehicle unless they are already familiar with the process. Most dogs behave well when riding in an automobile, but it may be a good idea to place them in a special seatbelt designed for pets just incase they become overly curious.
How To Sell Your Real Estate Investment With Seller Finance (10)
You carry the loan yourself on behalf of your buyer in exchange of monthly payments. All you require is proper planning, good research, and decent buyers to ensure that you buy, fix and wrap strategy gives you rewarding profits.