The freelancing life offers many benefits: flexible hours and no boss lurking over your shoulder, just to name a couple. But being self-employed also comes with some added pressures. Things that were once taken care of by your employer now fall on your plate. Paying your income taxes, for example. Fortunately, Brookside Accounting is ready to help you take the guesswork out of this important part of freelancing. Here’s how you can make sure you’re set up to pay income tax as a freelancer.
Know the Numbers
If you earn $400 or more in freelance income in a year, you must pay taxes on those earnings. As a self-employed freelancer, you’re considered both a proprietor and employee, and the IRS requires a 15.3% self-employment tax in addition to regular income tax. That’s why it’s recommended to set aside approximately 25-30% of earnings for the purposes of paying both taxes.
Know the Dates
Freelancers pay taxes quarterly: April 15, June 15, September 15, and January 15. You can pay with a voucher received from Brookside or another accounting agency, or you can pay online on the IRS website. We can help you figure your estimated tax amount based on your income.
Know When You Need Help
If you’re new to freelancing, or you simply need help managing the various aspects of your business, call Brookside Accounting for a free consultation. We know finances can get overwhelming. Our goal is to make it as painless as possible, so you can get back to your passion. At Brookside, we help freelancers with tax preparation services, and we also work through strategies you can adopt to save money. We want you to be prepared for the impact of your business taxes, as well as feel confident that you have taken the necessary steps to keep as many of those tax dollars as possible. We have locations in Fort Wayne and Indianapolis, but we also serve clients throughout the country. Call us today at (888) 317-4835 to schedule your consultation.