Got a side hustle? Here’s how to pay your taxes: https://blog.freelancersunion.org/2015/02/10/got-side-hustle-heres-how-pay-your-taxes/
Filing taxes as a freelance worker can be deeply confusing and highly problematic. There are a few specifications that FreelancersUnion’s Lindsay Von Thoen clarifies in her article entitled “Got a side hustle? Here’s how to pay your taxes.” First off, if you earn anything over $400 a year from client-based work then you legally owe taxes to the IRS. You will also still owe business taxes even if you are not incorporated as a business or private entity. Additionally, you can expect to be taxed about twice as much working as a freelancer because you will be taxed as an employer and employee. Essentially, this means you can expect to be taxed anywhere from 20-30% of your earnings. This figure seems particularly high when you have to make the payment all at the end of the year instead of paying taxes in increments along with paychecks.
This process starts to get especially complex when you delve into the order of steps involved in completing taxation for freelancers. This process involves needing a 1099 form from each and every one of your clients who you have worked for throughout the year. The IRS receives one of these forms each time they are issued and the agency is honing down on freelance tax evasion with each new day. Self-employment taxes are due on the same date as normal taxes: April, 15th. You can also qualify for tax deductions based on your freelance business. Popular deductions associated with self-employment include home offices, business websites, internet expenses, and office supplies. These are some serious aspects to consider when filing for taxes as a freelance worker. Many people do not consider these requirements when thinking about beginning a career in freelance work.