Freelancers, How to Avoid Uncle Sam?

Out of context: Reply #10

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  • fyoucher10

    4/15: $13,420.00 (Federal)
    4/15: $2,350.00 (PA State)
    4/15: $2,990.00 (Local, pay the entire year at once)
    6/15: $13,420.00 (Federal)
    6/15: $2,350.00 (PA State)
    9/15: $11,420.00 (Federal)
    9/15: $2,350.00 (PA State)
    12/31: $13,420.00 (Federal) (Pay before the next year)
    12/31: $2,350.00 (PA State) (Pay before the next year)

    - Get an accountant. Don't do that Turbo-tax thing unless you know what ur doing.
    - get a separate credit line or checking account that's specifically for business expenses.
    - Keep all receipts and organize and sort every 1st of the month.
    - Deduct as much as you can.
    - Contribute the max to retirement EVERY YEAR!!!! Max that shit out. It's like free money.
    - Send out all 1099-Misc by Jan 31st.

    That's it. I'm not incorporated or anything like that. Just have a DBA, which isn't shit really. I usually get deductions of about 40 - 50k, plus factor in Social Security and half self-employment tax.

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