Full-time AND Freelance?
Out of context: Reply #3
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- CincodeMayo0
Thanks epill. This is all pretty new to me. I've been full-time for years with small projects here and there usually for trade or minimal payment, but I've started taking on larger projects/entering contests/etc., so I gotta figure this stuff out straight. So to answer your question, there ain't all that much in my bank account. Actually, if I go the SE 1040 way I was thinking of opening a new account specifically for freelance earnings/taxes. Good idea? Bad idea?
So from what you said above, go the SE 1040 route and just put aside 40% of all my earnings, right? Then come tax time (or sooner) get an accountant who can help with write offs? Ideally I'd much rather get money back come tax time, and I don't plan on writing off all that much...just trying to make this as simple as possible.
Anyway, hopefully I'm getting this right. Tax talk to me is like Chinese, and I suck at Chinese.
- yes, open a new account not connected to anything, and put that money in there..epilI
- dont ever touch it.. it is not yours. pay your taxes with it.. but get an accountantepilI
- for write offs..epilI
- you will have to estimate your earning quarterly and pay every 3 months.. or wait til april..epilI
- and cry when you dont have the funds to pay your taxes because you will be freelance..epilI
- being a freelancer, doesnt always mean you get paid, if on time..epilI
- that is why you claim/ estimate your taxes quarterly..epilI
- Got it. What a royal pain. So I should put 40% of earning or ALL my earning into the new "freelance" account?CincodeMayo
- The new account should be only for your taxes. Your earnings keep in your savings/checking.epilI
- This way when you need to cut a check you have the funds that you managed separately for taxesepilI