Thanks for checking out our series on taxes. This post wraps up our tips on getting your taxes in order. If this is your first visit to the series check out the previous posts Part 1( insert link) & part 2 ( insert link).
This is by far the most unpopular subject I will probably ever talk about. The faster you get it taken care, organized, and out of the way, the better your year will be.
A majority of people who work in the varioius creative fields have had to freelance at one time or another. Working for yourself definitely has it’s benefits, but also contains a lot of responsibility. A key part of maintaining your finances as a freelancer entail taxes.
Having the basic skills to manage your taxes in the beginning will save you a lot of pain. I would venture to say that taxes are even a benefit if you do them right, and continue staying on track.
Want an easy way to keep your records without devoting your full attention or shelling out big bucks to an advisor? Follow these simple steps below to turn your taxes and record keeping in the right direction.
So you are about ready to file taxes. You have your Evernote and Dropbox ( insert link) accounts all set up, know your percentage to withhold from each check, and you are getting a hold of the different types of write-offs ( insert Wiki link) that you may have acumulated over the past year.
What could possibly be next? Not a whole lot, there are just a few more tips to think about before you send them off.
Get a Second Set of Eyes
If you still find taxes overwhelming, don’t hesitate to ask for help. Your parents have been doing them for the better part of their lives, and that is always a good place to start.
Hiring someone is definitely a good option. Despite being confident in my knowledge of my personal taxes I still hire someone.
Kogen’s Financil Services LLC is the compmay that does my taxes. The personality behind the paperwork is huge for me.
Get this, they specialize in preparing freelancers taxes. So they know all the ins and out of freeelance income. This is great because they know of things I can and can’t write-off, and why.
Plus everytime I need to pay estimated taxes, they automatically send me an email reminder. Can’t get much easier than that for one price a year.
If you are interested in contacting him you can view his website and list of services here. I am reciving zero compensation for referals, just want to pass along a good place.
Open a Separate Bank Account
One way I have combated the tempation to spend that extra 30-35% you should be setting aside is to open an entirely serperate bank account.
You can go as far as opening an account in another financial institution to make it even harder to touch that money on an impulse buy. For me, I just opened another savings accout online with my bank. Then every time I get a check at least 30% goes directly into that account for quarterly estimated taxes.
Wether you decide to file your taxes yourself or through a service, do yourself a favor and file online. You not only save money, time, and your own wits, you get a confirmation that it has been recieved.
Then while you eagerly await your return you can even check on your return status. Not to mention filing online, is the fastest way to recieve your return if you are expecting one. I usually get my return in about 2-3 weeks.
Taxes are never a fun thing to have on your to-do list. Getting them crossed off is a huge sigh of relief for anyone.
If you have been bad with doing your taxes in the past, get a head and start on next years now.
Everytime a check comes in, I set the 30-35% aside, log in my net and gross income into my spreadsheet. Its that easy to stay ahead of the game. I recommend doing the same with your write-offs.
Keep a spreadsheet, and as they trickle in you can log them.
WHAT IS YOUR FAVORITE TAX MYTH THAT HAS BEEN BUSTED?
*None of this content is considered to be taken as professional tax advice. Please consult a reputable tax advisor to insure you comply with proper state and federal tax laws.*