According to forbes.com, the downfall of taxes for freelancers is that we have to do them ourselves. However, to make it easier on ourselves, the article gives us some tips and ideas. First, it is advised that we get an accountant to track our expenses. It goes on to say that “If you don’t know and understand tax law and how your tax returns should look, once you’ve put in your information and you’re just taking it as it is without proofing it, you’re signing it, so you’re responsible for what you file.”
Aside from having an accountant or someone else to do your taxes, it is important to be organized and keep a schedule of possible payments. It is also crucial that we pay estimated taxes quarterly, “If you’re profitable, meaning if you have over $400 net earnings that are net self-employment earnings, you want to start paying quarterly, because if you don’t, when you file your taxes, you may be subject to a penalty.”
This article gave me the realization that freelancing can be difficult because of the responsibility of tracking and paying your own taxes. Budgeting money and creating a plan is the best way to go about it.