Taxes (Employer & Freelance)
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- 5timuli
How much, on average, should someone expect to get back from tax filing? Also, am I right on assuming that approx. 30% is what they'll ask for from any freelance earnings (I had no expenses, it was all just time)?
This is my first time dealing with taxes and it's already a pain in my aRse. I'm not a citizen of the USA, only a permanent resident. I moved states last year and did two freelance jobs which were paid by the same check.
The wife wants to use H&R Block but I'm reluctant to spend $200+ to get some monkey to input my data on a computer. Are they worth it or is it better/easier to do it yourself?
- doesnotexist0
if you're doing business taxes, you're going to be paying closer to $500 for someone to do your taxes (i use h&r).
sounds like you will have to pay more - you pay less if you continually put the money back into your business (new equipment, outsource work, supplies)
good luck!
- last year i only had to pay the tax preparer's fee because i put so much back into the business.doesnotexist
- Good point.skwiotsmith
- skwiotsmith0
1. Depending on how much you are making, 25% should be more than fine.
2. I did my taxes through TurboTax this year, and had no problems. Cost me around 115 I think. Also, TT let's you do multiple state filings pretty easily.
- 5timuli0
Thanks. I actually didn't earn anything in the other state, only here. And I'm not filing business taxes, I don't do a lot of freelance and hadn't done anything before or since that.
Is it normal to get a W2 (or some other kind of paperwork for taxes) after freelancing for a company only once? I'm sure I got some paperwork in the mail but I can't remember if I dreamt it or not :S
- 5timuli0
So does the 1099 come from the employer (company hiring the freelancer) or does it come from somewhere else?
- Jebus0
30% is safe amount.
Do yourself a favour, get a financial adviser. Ever since working with one I get so much more back at tax time. They know all the little ins and outs that will get you the best return.
For example, in Canada at least... it's in your best interest to take a loss on your freelance. If you can work it so that your expenses outweigh your income you won't have to pay tax on what you earned and will actually get a refund for it.
You also mentioned this is your first time filing in the US, you should be able to write off all of your moving expenses as well.
I <3 my financial adviser!
- flashbender0
Agree on setting aside 25%.
Definitely pay the money to have a professional do it. If you can, ask around and see if someone can reccommend someone who specializes in helping creatives - they will help you find more things to take as a write off.
Yes, you should get a 1099 for any income you earned as a freelance or contract employee from the company you did work for.
- akrokdesign0
yeah, you write off all the crap you buy for the business. the system is set up that you have to buy to get money back.
- mrbee28280
Don't forget that if you are freelancing full time and not employed by anyone else you'll need to add and extra 15% to that 25% for self employment tax... FICA [heart] full time freelancers!
- 40%. damn.akrokdesign
- yep, it's a way of life.arthur
- if you are paying 40% you are doing something very wrong.Faction18
- tkmeister0
i would set aside about 35-40%. If you are 100% on 1099, make sure you pay quarterly estimate and also, max out your IRA and SEP. you can save so much on taxes that way. if you are mostly on W-2, then it's a lot easier.
Once, I owed about 24k on taxes and that was after paying quarterly estimate taxes. After maxing out my SEP and IRA, and a lot of expense write-off, my accountant successfully brought it down to 8k. that was really stressful experience.
- jonatne0
I thought the title said Texas
Now that I know it say's taxes, I'll leave
- pr20
if u r i nyc. get yourself a polish accountant and have your taxes done for $100 or less.