Many people have turned to freelance work because of the many benefits it has. Some of the benefits of freelance work is that you get to work at the time you want. Also, when you freelance you can rest at any time you feel. Another reason why freelancing is essential is that you get to choose your own client. However, as a freelance it is vital to ensure that you always pay your taxes. The IRS define a freelancer as a business owner. Anyone who carries on a trade or business as a sole proprietor or an independent contractor is known as a self-employed. 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. Here are guidelines for tracking and filing your freelance income.
Chief among the things you need to know is the taxes you need to pay. You should know the amount of tax you need to pay if you are a freelancer. You will pay the tax in addition to any income tax you own. Social security and medical taxes that the other employees who work on a full-time basis are deducted from their paychecks are some of the representations of self-employment tax.
Another thing you also need to know is how to track your income. To track your income it is important that you get a form from each client. The things that should be contained in this form is the money you have been able to receive from the work you have done for the clients. Doing 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. Hence, you will be at the right side of the law.
It is also vital that you know how often you should pay your freelance tax. In certain months which are April, June, September, and January the freelance tax is paid. Knowing specifically when you are supposed to pay the tax so that you can avoid any problem with the IRS is vital.
The other thingPayStubCreator you need to know as a freelancer is the deductions you canPayStubCreator claim. You should deduct business expenses like office rent, professional fees, training and education, licensing and certification fees, along with supplies and travel costs.
Finally, looking at the above article will help you to know how to track and fill your freelance income.