As a blogger and small business owner, I have income that comes in throughout the year that I have to report to the government and pay taxes during tax season. We actually like doing our taxes because we usually get a nice return which is important to our family while my husband is in school. We usually have them done the first week in February. 🙂 And we always do our taxes online. With the resources like TaxSlayer who offers free live phone and e-mail support to all customers, taxes are easy to file online even when you’re a freelancer. Here are some things I do to prepare to file my taxes.
Put Aside Tax Money
When you earn money as a freelancer, you don’t pay taxes throughout the year (unless you pay quarterly, but you have to be making bigger bucks than I do to do that). So when it comes time to pay taxes, it’s important to have money saved so it’s not a huge hit. According to my research, you should put aside 25% – 30% of your earnings. That may be hard especially when your income fluctuates as a freelancer, but it will be worth it when it’s time to file your taxes. And if you end up not having to pay that much, then you have some extra money! Win!
Keep Track of Your Income
It’s super important to keep track of your income so you know how much you made. When you keep track of it throughout the year, it will be much easier to grab your numbers instead of scrounging around looking through your bank statements. It’s as simple as recording it on a spreadsheet or using a website that keeps track of invoices you’ve created.
As I work for quite a few different influencer agencies, I get a few different 1099’s in the mail that show how much they paid me during the year. I make sure to have a file folder ready and place them in the folder as I receive them throughout January and into February. That way when I am ready to sit down and file my taxes, I have all the paperwork with me.
Use the Right Tax Software
I love that I can file my taxes online and tax software like TaxSlayer is so great at prompting you along the way with the right steps you need to follow. TaxSlayer has over 50 years of tax preparation experience. With TaxSlayer, you choose your level of service, everything else is included. And they’re prices are very affordable. Plus they have great resources to help you like this blog post that explains whether or not you qualify for the Earned Income Tax Credit. With such a simple process, you don’t have to be afraid to file your taxes. File now at TaxSlayer.com.
I was selected for this opportunity as a member of CLEVER and the content and opinions expressed here are all my own.