Freelancing allows you much more freedom when it comes to preparing and paying your taxes. Self-employed individuals have the benefit of having complete control over their taxes throughout the year. It is best to pay substantial amounts of your tax payments incrementally throughout the year. SECA or Self-Employment Contributions Act tax is required to be paid quarterly.
One of the best ways to ensure that all tax payments are completed in a timely manner is to join the EFTPS or the Electronic Federal Tax Payment System. This will allow you to pay your taxes online electronically and have them deducted straight from your bank account. In addition, you will want to calculate your gross income. If this number is positive, then you can make some deductions based on business expenses. If this number is a loss, you may want to consult with a tax analyst to ensure that all forms are filled out correctly.
A good strategy for freelancing professionals is to try to steadily reduce the amount of taxable income. You will also want to ensure that you take advantage of any tax credits that are offered.
One step to filing taxes as a sole proprietor is to make sure that you organize your expenses and income so that when it is time to file your taxes, you have all the information you need at your disposal. Business expenses like home office supplies, rent and utilities, computers, websites, software programs, or other expenditures can be deducted from your taxable income. If you need more help with filing your taxes, visit the IRS website or contact a tax consultant.
Find local listings of businesses and services near you. Get driving directions, reviews and ratings, phone numbers, addresses and more on Local.com.
