5 Essential Things You Should Know About Filing Freelance Tax Form
Almost a third of the workforce in America is working in the Freelance sector. In 2019, America recorded 57million people working as freelance. Some people choose to do freelancing in their life but others find themselves in the industry because they have lost their jobs. For those that freelancing by choice they will brag of enjoying the flexibility of the job freedom to make more than any other employment. However, nothing that doesn’t have its other side and so does the industry. One of the things that challenge freelancers is tax filling. The good news is that filling your freelance tax isn’t a complicated thing to do but an easy one. You should make sure you have filed your taxes on time to avoid penalties or losing your business which means losing your income too. Continue reading this site and you will learn more about the ways you can make your freelance tax filling easy.
It’s good to hire a tax professional. Due to the variation like the work one does it can affect the tax filing which makes it not easy for everyone. Make sure you request help from tax experts when you get stranded on how to file your freelance tax. Make sure to view here for more details about freelance filing.
The next thing that you should do is to decide what type of business structure you have. Freelance business can be categorized in any of the business structures like Sole proprietor, LLCs, or S – corps among many others that you can view here. When you classify your business as a sole proprietor you will pay tax differently from someone who classifies the business as LLC which will cost more taxes than the others. In case you want to know more about this make sure to check it out here for more info.
It’s also good to know your quarterly tax payment estimates. Quarterly tax estimation is important here because when you have a huge tax bill you can pay it in bits to reduce the burden. You should divide the 30 to 35% which is the yearly tax of your total income in into four and find out what is your quarterly estimates.
Make sure you keep track of your income. Make sure all your income and expenses are recorded and well filed because they are very crucial when it comes to freelance filing. Sometimes tracking your income can be daunting but if you consider checking stubs online for payroll management you will make it easy for you.
Putting it off should not be an option. The worst thing you can do is to procrastinate your tax filing. You can get more of such info if you click for more.
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