You are in charge of your freelance tax filing, but this can get pretty confusing. How do freelancing taxes work? What will you owe …
Navigating the world of freelance taxes can be daunting, but understanding the basics can help you stay compliant and avoid unnecessary penalties. Here’s a comprehensive guide on paying freelance taxes and some self-employment tax tips for freelancers.
Understanding Freelance Taxes
When you’re a freelancer, you’re considered self-employed, which means you’ll need to handle your tax obligations without the help of an employer. This typically involves paying both income tax and self-employment tax. The self-employment tax covers Social Security and Medicare, totaling 15.3%.
Paying Freelance Taxes
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Estimated Taxes: Freelancers should make estimated tax payments quarterly, as opposed to salaried employees who have taxes withheld from their paychecks. This can be done online via the IRS website.
- Annual Tax Filing: At the end of the year, you will need to file a Form 1040 and attach a Schedule C to report your freelance income and expenses. Form SE is used to calculate your self-employment tax.
Self-Employment Tax Tips
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Keep Detailed Records: Maintain accurate records of your income and expenses. Use accounting software tailored for freelancers like eFrelance to keep everything organized.
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Deductible Expenses: Maximize your deductions. Common write-offs include home office expenses, internet, travel, and supplies essential for your business.
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Retirement Contributions: Consider contributing to a SEP IRA or solo 401(k). These contributions can lower your taxable income while saving for retirement.
- Consult a Professional: Tax regulations change frequently. Consulting a tax professional or using platforms like eFrelance can provide more personalized advice and ensure you’re taking advantage of all possible deductions.
Navigating freelance taxes doesn’t have to be complicated. With good record-keeping, strategic planning, and the right tools, you can simplify the process and maintain financial health.
24 Comments
@YourBFFMegan
Thank you for watching Freelance Taxes: How to Pay Freelance Taxes//Self Employment Tax Tips for Freelancers! Book a call to discuss joining Revenue Spark: https://calendly.com/megangrant1/30min
Reply@user-re8ej6vx9d
I would like to book a call with you for discussion something very confusing for me. as you have provided amazing information but it did not answer my problem.
Reply@authorfrancesmarie8242
Can you explain “remit tax”? I am so confused by the lengthy explanation 🥲
Reply@A.life.living
This was soooo helpful!!! 😊 Thank you!
Reply@sphaerashaney
Thanks 🙏
Reply@austinkeithgrant
This makes me feel better! Thanks for the info
Reply@jocelyncassiere708
To pay that quarterly payments, is that include the Social security and Medicare? Also what about the state? Do I need to pay quarterly payments in advance as well or just the federal?
Reply@jelenasusic2914
thank you for this video. I have quite a bit of anxiety about managing the money and taxes as I am considering becoming a freelancer. Your video hepled ease some of that anxiety
Reply@keeferkifflom360
This is so intimidating but useful.
ReplyI’m becoming a freelance artist on upwork.
@1938superman
I really wanted to take a moment to thank you for this video. I am facing some potentially big life changes and possibly having to go freelance. I have no idea what I'm doing and I was spiraling tonight. A simple video with clear information like this, even if only to familiarize the viewer with the process is incredibly helpful and reassuring. So many other video are either unclear or take forever to get to the point. Thank you again.
Reply@ashleighdonell8257
the intro is gold hahaha
Reply@iamvoicelessmusic
Do you have any advice or resources for people who do freelancing as a side gig? I have a full-time job but also do graphic design work on the side.
Reply@wendysmith1453
Thanks for this video, it's been very informative. I have not seen many Freelancers talk about the tax-paying part and I am so glad I came across your video. Thank you again!!!
Reply@AnkitInFocus-ne2kv
Hi my name is Ankit , i am from india I actually started working as a freelancer for us client based in florida , so now she is asking me about the taxes how if she pay me what will be the process of taxation overthere in us , can you hlep me with that
Reply@andreas_adventures
Starting this process and it's super confusing. I wish this was more common knowledge. Where do you even find an accountant? Do you need a business license of some sort? If you're doing work for people and not businesses, is it still freelancing?
Reply@Mkzing777
F the government ! We need another American revolution.
Reply@WillJonesPower
Very helpful
Reply@hi_aleeee
Thanks for the video. Ive been scared to start freelancing because I have no idea how to file these taxes. You relaxed me somewhat
Reply@chloedeyoung
thank you for this video! you explained it well for someone like me who is completely new to this!
Reply@fodafoda7115
I will make website like udemy and need partner and instructors for join us please if you interested reply me
Reply@RocksmashRonin
Thanks Megan! Great insight and awesome pearls of wisdom! I really liked the perspective shift at the end about taxes being a privilege as a result of me being successful and making money. Great way to adjust thinking towards the positive! 🙂
Reply@mastufakhan7014
Are you married Megan, I know its owkword question
Reply@mastufakhan7014
I'm the only person to press like button without seeing whole video
Reply@mastufakhan7014
Beauty and Megan, what is the relationship
Reply