Ways You can Track and File Your Freelance Income
Numerous number of people have turned to freelance work because of the many benefits it has. When freelancing you get to work at any time. When freelancing you can also rest at any time you feel. Another benefit of freelancing is that you get to choose your own client. You need to ensure that you always pay your tax as a freelancer. 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. 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 you are known as self-employed. 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. It is important that as a freelancer you know the amount of tax you need to pay. 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. To track your income it is important 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. You will, therefore, get to know the right side of the law.
Another thing you need to know is how often you should pay your freelance tax. You can pay the freelance tax quarterly in the month of April, June, September, and January. Knowing specifically when you are supposed to pay the tax so that you can avoid any problem with the IRS is vital.
As a freelance, you should also know the deductions you can claim. It is possible to deduct business expenses like office rent, professional fees, training and education, licensing and certification fees, along with supplies and travel costs.