freelancing / tax
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- scpgt
okay. still very new at all this professional malarky, and i've just done my first properly invoiced freelance job.. (woo! woo! etc..)
suddenly worried about how to tax myself and all that..
any links to easy-to-understand guides or anything? the inland revenue are little help..
??
- davey_g0
Good rule of thumb is save 25% of all your profits for taxes...then save every possible receipt for write-offs and you should be golden homie...may even get a bit back, better than owing anyday.
- todelete__20
if you're doing a lot of freelance you can pay taxes quarterly with the help of an h+r block agent (or any tax pro). you can pay say 5% or 10% of whatever you made every 3 months.
at the end of the year when you file you will have credit to your tax account. if you need to pay more in taxes it will be minimal. if you paid too much you'll get it back. also keep all receipts for write-offs and if possible don't let them do the bullshit 7 year acrue crap.
- spongebob0
just tell them you are unemployed and living off your mum.
- tkmeister0
getting an accountant is the best way to go. i used to do all my taxes with h&r block. but with an accountant, it's so much easier and he knows the way around the tax law. yeah, you pay like $300 or so, but i saved about 3-4k on my taxes.
also, remember to do quarterly estimated tax. if you don't, it's gonna kill at the end of the year.
- scpgt0
ta for the replies..
stuff to mull over.not sure i'm in the position to (or that it'd be worthwhile to) get an accountant just yet but i'll bear it in mind..
more worried about ending up owing a shedload at the end of the year but if i keep enough back, should be okay shouldn't it (?)
hmm
- jaylarson0
this site is a good resource... mostly.
i recommend doing "quarterly tax." I think'r that when you pay all at once, there are some additional "fees"...
but look into it!
google: freelance +quarterly +tax
----- or something....
- MLP0
do you tax your services when you bill out? or do you just tax it if they're actually getting something .... ie burned CD or something...
- Point50
If you do projects for a cliient and the annual total that you bill that client is under like $1200, you don't have to report that to Uncle Sam do you? I know out here in Vegas if you win under $1200 gambling, you don't have to pay any taxes on it. That's why a lot of lower end and local gaming establishments have jackpots that cap at $1199. True withinvoiced work or no?
- ukit0
Hey, that's a nice idea - just charging taxes directly to the client! Then when they complain, just say, sorry, out of my control ha ha
- radar0
I'm with Point5 I don't even claim mine as of yet, and doesn't the client technically have to submit a 1099 or some shit before your really obligated to file?