Freelance Taxes
Freelance Taxes
Out of context: Reply #10
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- johndiggity0
if you got a 1099 they didn't withhold any taxes. you are responsible for paying your own state and federal, in addition to both your and their share of social security and medicare. and you need to pay these every 3 months (quarterly) or you will incur a penalty from the irs.
so you are probably going to owe the irs some money this year. if you are making over $1500 year on side work that doesn't get taxed, definitely invest in an accountant. meet with them and ask them to show you how to file estimated quarterly returns for state and federal.
and +1 about the 33% in the separate bank account. it's no fun when you get the letter from the irs about how you owe them $10k. this is speaking from experience.