A Guide to Taxes and Resources for Freelancers
Being a freelancer comes with a lot of perks. You can set your own hours, work from anywhere, and be your own boss. However, there is one downside to being a freelancer: taxes. When you’re self-employed, you are responsible for paying your own taxes. This can be a daunting task, especially if you’ve never done it before. But don’t worry! We’re here to help.
In this blog post, we’ll give you a crash course in taxes for freelancers. We’ll cover everything from how to file your taxes to what deductions you can take. By the end of this post, you’ll be a tax expert if you want to move forward with your The Real World freelancing projects!
How to File Your Taxes as a Freelancer
There are two things you need to do when it comes to taxes as a freelancer: file your taxes and pay your taxes.
Let’s start with filing your taxes.
- The first thing you need to do is figure out which tax forms you need to file. The most common form used by freelancers is the 1040-EZ form. This form is for people with incomes under $100,000 who are not claiming any dependents. If you don’t meet these criteria, you’ll need to use the 1040 form instead.
- Once you’ve figured out which form you need, you can download it from the IRS website or pick it up at your local post office.
- Once you have the form, fill it out completely and accurately. Be sure to include all of your income, both from freelancing and from any other sources. Once you’ve finished filling out the form, sign and date it, and then mail it off to the IRS. That’s it! You’re done filing your taxes as a freelancer!
Paying Your Taxes as a Freelancer
Now that you’ve filed your taxes, it’s time to pay them.
- The amount of tax you owe will depend on how much money you made during the year. If you made less than $20,000, you probably won’t owe any federal income tax. If you made between $20,000 and $50,000, you’ll probably owe between 10% and 15% in federal income tax.
- And if you made more than $50,000, you’ll owe between 15% and 20% in federal income tax. In addition to federal income tax, you may also owe state income tax (if your state has an income tax) and self-employment tax (if your total freelance income was more than $400).
- You can pay your freelancing taxes online through the IRS website or by mailing a check or money order to the IRS (be sure to include the proper forms). You can also set up an installment plan if you can’t pay all at once. And that’s it! You’re done paying your taxes as a freelancer!
Resources for freelancers
Being a freelancer comes with a lot of pros and cons. On one hand, you have the flexibility to set your own hours and work from anywhere. On the other hand, you also have to deal with the challenges of being your own boss, including finding new clients and managing your finances. Fortunately, there are a number of online resources that can help make freelancing a bit easier.
There are numerous online communities dedicated to supporting freelancers. With so many resources available, there’s no reason to go it alone as a freelancer. tapping into these online tools can help you find new clients, stay organized and connected, and smooth out the bumps in the road.
Conclusion:
As a freelancer, it’s important to know how to file and pay your taxes correctly. While it may seem daunting at first, we hope this guide has helped demystify the process for you! Remember: as long as you stay organized and keep good records throughout the year, filing and paying your taxes will be a breeze!
