![]() ![]() That way, you won’t get blindsided by a huge tax bill once tax season rolls around. That’s why we recommend setting aside around 25–30% of every freelance check you receive in a separate savings account to cover both your income taxes and self-employment taxes. ![]() But remember, you need to report any freelance income you earn on your tax return, and you’ll have to pay income taxes on all of your freelance income. If you earn $400 or more from freelance work in any given year, you’re responsible for paying self-employment taxes on those earnings. In most cases, freelancers will need to pay two types of taxes: income taxes and the self-employment tax. What taxes do I owe on my freelance income? Let’s run through some important basics that freelancers need to know about their taxes. And if you’re not careful, you could lose a large chunk of your freelance income to an enormous tax bill. And let’s be honest, who doesn’t want more cash in their pockets?īut here’s some real talk: Whether you’re a full-time freelancer or just make a few hundred bucks here and there with a small side hustle, it will impact how you file your taxes. ![]() Basically, you get to be your own CEO! Even if you already have a full-time job, freelancing is a great way to earn some extra money. You choose your hours, what projects to take on, and where you work. 1Īfter all, being a freelancer comes with some nice perks. In fact, about 60 million American workers (which represents 39% of the entire workforce) did some form of freelance work, earning a whopping $1.35 trillion in 2022. That’s how it’s done, baby!Īnd you’re not alone. You go out, kill something, and drag it home every day. Being a freelancer means being your own boss, and that can be awesome. ![]()
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |