According to recent studies, there are over 57 million freelancers in the United States. And while this number may strike you by surprise, it’s only looking to increase with the rise of technology.
But before you think about joining the millions of Americans who have made the switch, there are some rules to freelancing that you must be made aware of. Let’s take for instance freelance tax. Even though more and more people are taking to freelancing as a career many don’t know how to file taxes as a freelancer.
Fortunately, we’ve got you covered. Here is everything you need to know about filing taxes as a freelancer.
1. Talk to a Tax Professional
Making a mistake while filing taxes can be daunting. And because filing taxes as a freelancer is vastly different, you may want to seek additional help.
Speaking with a professional is key when learning how to file taxes as a freelancer. Because taxes aren’t normally taken out of freelance work, a professional will be able to show you how to save time and headaches when filing.
2. How Much Did You Make?
When you accepted the position as a freelance worker, you also accepted the responsibility for your insurance, Social Security and Medicaid taxes. Normally, full-time employees will have these numbers automatically deducted from their check.
Taxes are exempt to no man, even if you are a freelancer. Be sure to calculate how much you made during the annual year. And if you haven’t set aside money from every check, about 30% of your income should be given back to taxes.
3. Get a 1099 Form
Normally, employers will provide your tax forms to you prior to filing. But as a freelancer, you are going to need a 1099 form instead of a normal W-2. And if you plan on skipping out on hiring an accountant, you may want to take the online option instead.
Fortunately, sites like The Pay Stubs allow you to create 1099 online. Thousands of freelancers are using this 1099 generator in order to accurately file their taxes for the upcoming year. Not only does it save you tons of time, but it easy to use. Especially for those who are just learning how to file taxes as a freelancer.
Learn How to File Taxes as a Freelancer and More!
Whether you’re looking to learn more about how to file taxes as a freelancer or are thinking about switching career fields, we’re here to help. New to HR is a platform created for readers like you who are looking to expand their knowledge base about the work field. Because this field can be ever-changing, we are deliberate about providing top-of-the-line resources for avid learners.Want to team up with us?
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