Due to the so many benefits freelance work has many people have turned to it. Some of the benefits of freelance work is that you get to work at the time you want. Another benefit of freelancing is that you can rest at any time you feel. Another benefit of freelancing is that you get to choose your own client. However, as a freelance it is vital to ensure that you always pay your taxes. A freelancer is defined as a person who owns a business by the IRS. If you carry on a trade or business as a sole proprietor or an independent contractor you are termed as a self-employed person. Also, other things that term you a self-employed person is if you are a member of a partnership that carries on a trade or business or if you are otherwise in business for yourself such as part-time business. The following are ways you can track and fill your freelance income.
First off, it is vital that you know is the taxes you need to pay. You should know the amount of tax you need to pay if you are a freelancer. In addition to any income tax you own you will also pay the tax. Some of the representations of the self-employment tax is the social security and medical taxes that the other employees who work on a full-time basis are deducted from their paychecks.
You also need to know how to track your income. For you to know how to track your income it is vital to ensure that you get a form from each client. The money you have been able to receive from the work you have done for the clients are some of the things that will be contained in this form. This will help you to know exactly the amount of money you have earned and how much money you need to pay as tax to the IRS. Therefore, you will be on the right side of the law.
It is also vital that you know how often you should pay your freelance tax. You can pay the freelance tax quarterly in the month of April, June, September, and January. It is vital to ensure that you know specifically when you are supposed to pay the tax so that you can avoid any problem with the IRS.
Another thing you need to know is the deductions you can claim. Deducting business expenses like office rent, professional fees, training and education, licensing andPayStubCreator certification fees, along with supplies and travel costs is possible.
Finally, looking at the above article will help you to know how to track and fill your freelance income.
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