Freelance Taxes
Out of context: Reply #23
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- edd-e0
cosmo, take out 40% for taxes, this percentage will give you a good enough bubble where you are over estimating enough where you wont under estimate. the 40% also will guarantee you receive money back instead of you paying more come april 15th. also keep every receipt you can, this means everything. any time you also use your ATM card, if the exchange was under $500 it can be written off. half your rent, and half your bills thru the home can also be included as a write off, if you work out of your home. if you are in a commercial space, and you rent from there its 100% write offs. also a good way to write off is to make charaties more important part of freelancing. a good dontation thru Goodwill or some other charitable organization is awesome!!! and the write off is good for it too. keep all your receipts, bank statements, utilitity bills, for the next 7 years, freelancers get audited a great deal more than businesses and fulltimers. so always be prepared to have all the info you need, just in case. get an accountant too, get someone who knows the loop holes in getting you to keep your money over flushing it out to the govt. each state has a different amount of loop holes so the accountant should know the deal...
good luck!!!
also charge the world for your work!!! demand nothing less as well.
always have a contract, and get everything in writing, and if you charge per job, get a sum up front. dont let your money stay in their pockets!!! its yours so take it!!!:)