Comments on: Freelance Tax Tips

By: Freelance Writing Jobs » Blog Archive » The Importance of Keeping Good Records

Tue, 29 Apr 2008 14:32:57 +0000

[...] joke that I married an accountant because of his record keeping skills and because he handles my taxes. The truth is, his success at keeping track of the family finances, is contingent on my success at [...]

By: Freelance Writing Jobs » Blog Archive » Oldies but Goodies: A Look Back Through the FWJ Archives

Thu, 06 Mar 2008 21:43:05 +0000

[...] Freelance Tax Tips – A wonderful resource by Lela Davidson. [...]

By: Shane

Shane — Thu, 21 Feb 2008 21:56:57 +0000

Great education. Figuring out how the taxes worked early on was the hardest part for me, but once you go through a year or two I you get pretty good at navigating the muck.

Thanks for sharing!

By: 3 Reasons To Think Twice Before Claiming the Home Office Tax Deduction

3 Reasons To Think Twice Before Claiming the Home Office Tax Deduction — Fri, 11 Jan 2008 05:56:44 +0000

[...] Davidson, guestwriting for FreelanceWritingGigs, feels that the home office deduction “is mired in muck“. I agree – the tax provision [...]

By: Freelance Writing Jobs - The Internet’s #1 Freelance Writer Community » Blog Archive » 9 Things Freelancers Should Do Before the End of the Year

Fri, 23 Nov 2007 15:55:17 +0000

[...] like to do to start the new year fresh and hassle-free. Though I don’t necessarily send in my taxes at the very beginning of January, I like to have all of my accounts in order so I can close out the [...]

By: Lela Davidson

Lela Davidson — Mon, 01 Oct 2007 02:01:50 +0000

Here’s a nice list of deductions:
http://www.problogger.net/archives/2007/09/28/46-tax-deductions-that-bloggers-often-overlook/
Tax Girl appears to be a great resource!

By: Carrie

Carrie — Wed, 26 Sep 2007 17:43:49 +0000

This was fabulous education, thanks! I just want to put in one note (with the caveat that this was my experience only). I’ve worked full time for an outside employer taking takes with freelancing on the side for the past three years. The first year, I did not submit estimated taxes and ended up owing about $2,500 (with a $10 penalty for not paying estimated) when I did my taxes. Last year, I paid estimated taxes, but my husband and I had lots more deductions because of his school, so we ended up receiving $1,500 back. This year, I’m hoping that we’ll break about even!

I just wanted to let people know that even if they’re freelancing part time, they still can get smacked with a huge tax bill! Put 30% away no matter what, and talk to a CPA before tax time!

By: Kendra Dahlstrom

Kendra Dahlstrom — Wed, 26 Sep 2007 14:21:11 +0000

Wow, thanks for the info! I have been setting aside 30%, but had NO idea why. Now I know that it will probably be appropriate. I can relax a bit now.

By: J. Jackson

J. Jackson — Wed, 26 Sep 2007 11:32:35 +0000

Thank you thank you thank you….. This little education ditty cleared up several things for me. I’m realizing I’m going to have to break down and find a CPA. I live in a samll town but there are 73 CPA’s listed in the Yellow Pages! What a hoot!

By: Lela Davidson

Lela Davidson — Wed, 26 Sep 2007 03:10:40 +0000

Yep, it’s Schedule C. That’s not to say that things don’t get put under Other Income sometimes, but self-employment income belongs on Schedule C. The good news is, if you have a few deductions, you may not reach the threshhold to pay the self-employment taxes.

By: Phil

Phil — Tue, 25 Sep 2007 23:48:57 +0000

sei,

schedule c income

By: TwoPointers

TwoPointers — Tue, 25 Sep 2007 23:31:45 +0000

AWESOME information. Thank you!!

By: S.E.I.

S.E.I. — Tue, 25 Sep 2007 22:35:22 +0000

Thanks for the information, but I have a question about those of us who are not full-time freelancers (as in, the freelancing jobs do not generate enough income to live on, are sporatic, or we do this as a part-time job). Do we still need to register as self-employed? Or would this be an instance of where we would list the income as “Other” on the tax form?

By: S.

S. — Tue, 25 Sep 2007 19:48:57 +0000

Thanks a zillion for this! I’ve only been freelancing hardcore this year, so I really had no idea where to begin/what to ask when looking for a CPA. This has been a godsend!

By: Erik Hare

Erik Hare — Tue, 25 Sep 2007 19:15:19 +0000

People, people … that was not *advice* it was education! Get with the program!

Seriously, thanks a lot!

By: Mariella

Mariella — Tue, 25 Sep 2007 16:42:23 +0000

Oh yes, thanks for the advice about getting an accountant btw. Two of my best friends have just been certified last year. And though I don’t think they have enough experience to give me good advice, they will have, in due time, as they manage my finances.

By: Sue

Sue — Tue, 25 Sep 2007 16:37:03 +0000

This is a good start, but I can’t recommend enough the wisdom of having an accountant. It’s been a lifesaver for me.

What my accountant appreciates is my keeping good records. I have several spread sheets set up to record my income both annually and monthly. I keep record on how much I spend on everything used in the business, from phone to computer purchases (which he then will advise me on how to deduct). I don’t count on only the 1099s because I didn’t get them from everyone I worked with. And because I do have an actual office in the house, so the accountant can correctly deduct those expenses. Plus, my accountant and I can also plan other things, like retirement.

By: Mariella

Mariella — Tue, 25 Sep 2007 16:13:11 +0000

I guess I’m lucky I’m listed as head of the family and I’m sending my sister to college so I won’t have to pay much. Of course I don’t live in the US, but I think this generally sums it all up.

By: Mary Ann

Mary Ann — Tue, 25 Sep 2007 16:09:11 +0000

Lela,
Great advice. Thanks for the information!