NYC Freelancers : A tax question
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- EricStralow
This is my first year freelancing full time. What do you guys pay in taxes generally? Just the raw number percentage-wise...no $ figures or %'s after expenses and etc. I'm putting away half of everything and expecting to fork over 36-40% of the gross...this sound reasonable?
Thanks,
e
- edd-e0
if you earn under $120k your taxes should be 35%
if you earn more your taxes should be 40%
you should estimate quarterly and pad the total number with a few extra bills just to be on the safe side. if you under claim your earning you will be penalized. so it is always bettert to over estimate your earnings.
every receipt under $500 is a write off close to 100%. half your rent and half your bills are also write off's. any large expenses are also...a write off. any entertainment, supplies, transportation and food can also be written off to help your taxes.
get an accountant. best answers from them as a good one will know the ins and outs of freelancing and how it can work in your favour.
keep all receipts for 7 years. freelancers cget red flagged first, so always have good records.
here is a present from me to you...
http://www.edd-e.com/nt_/freelan…
PDF of 52 pages of Freelancing Forms
use it wisely.
good luck with your career!!! earn the most you can!!! and always get any agreement in writing never use a verbal agreement.now that you have the forms you have no excuses to a verbal agreement.
;)
- EricStralow0
Ha. Thanks a boatload!
- edd-e0
you mean your first paycheck is mine right??
;)
- EricStralow0
Bah. After taking time from work to walk to the bank, and taking more time to adjust your monthly numbers, the nail-biting you'll go through while waiting for the check to clear, and the additional stress that extra line item will cause your accountant at tax time...well...by my count, you owe me money for saving you the trouble.
:)
- edd-e0
eh..im a seasoned freelancer, and i pay my taxes 1-2 times a year...
so send me that check!!
;)
- F_180
edd-e as it about right. of course, being self-employed means you get to expense things, and put money away in a sep 401k (or equivalent) BEFORE you pay taxes. so while the percentage that you owe as taxes stays the same, if you (and your accountant) do things right, it becomes a percentage of a smaller overall number. ya dig?
- edd-e0
i have SEP and ROTH IRA.
but he didnt ask about how to make the money work, he only asked about what the percentage of taxes was.
;)