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Article / Updated 09-15-2023

You’re free! Free to sleep in until 11 a.m., free to work while your adorable toddler plays at your feet, free to . . . keep really good records of all your expenses for your taxes. Not so fun. The reality is, being self-employed can be awesome for 11 months out of the year, and then come crashing down on your head in the form of lost receipts and unpaid estimated taxes in April. Read on for what every freelancer needs to know for your taxes. Get Organized First, keep good records. Go paperless, get organized and keep track of two things: Your business income. This is your responsibility, and it is a big one. The IRS is especially sensitive about freelancers fudging their income. Yes, you will receive 1099 Forms from clients with what you earned, but only for jobs worth more than $600. So make sure you have a good recording system, like a “Freelance Income” folder in the Money Center. Your business expenses. You don’t want to miss out on deductions related to business expenses, so carefully record what you spent, the date, who you paid it to and the purpose for expenses such as: Business cards, online ads and other tools used to promote yourself and your business Business insurance Interest paid on your business credit card or business loans Lawyer fees and other professional services Rent or dues on a workspace Repairs for your computer, camera and other business-related equipment Routine office supplies like pens, paper, staples, etc. Travel costs like plane and train tickets Business meals with clients and other entertainment reasonable for your business Find the Right Tax Preparer Taxes for freelancers are complicated, so invest in a tax preparer. Look at it this way: You could pay about $300 to get your taxes done, and an accountant could easily save you $300 in fees, deductions you hadn’t heard of and more. If you decide to pay for a tax preparer, make sure they are familiar with all the ins and outs of self-employment taxes. It’s best to find one that specializes in self-employed individuals and is available throughout the year if you have any questions. Read the rest of the article on LearnVest.com.

Article / Updated 03-26-2016

If there is one thing to make sure you get right on your taxes, it’s your filing status. It can determine how much you pay (or save) in taxes. Plus, it’s one of the things that, if you get it wrong, will definitely land you in a dreaded audit. (Find out what else will get you audited.) Your filing status basically expresses how you wish to be treated by the IRS, and can determine which deductions and credits you are allowed to take, which forms you should fill out and more. Don’t stay up at night fretting over this issue; everything you need to know has been compiled for you into a handy flow chart. Once you find out your filing status, you can read more about it here. Two notes before you get started: In the interest of keeping the chart simple and easy-to-use, this does not account for people who are not United States citizens. (If you are a resident alien, you might this article useful.) Also, the IRS does not recognize same-sex marriages, even if they are legal under state law, so if you are in a same-sex marriage, you should file as a single on your federal return. Read the rest of the article on LearnVest.com.