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Save Money – Pay Your Taxes in Full

Why You Should Avoid Installment Agreements

By on August 27, 2010. Leave a Comment
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If money were no object, would you rather pay your taxes in full or via an installment agreement? I don’t know about you, but I would rather get it over with and pay everything up front if I could. While this may not be possible for everyone, you ought to realize that you can actually save money if you pay your taxes in full. That is probably common sense – you don’t need me to tell you that you will save money if you pay everything in one go (much like with other purchases that you make). Do you know [Read more…]

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Contest Winnings and Taxes

By on August 6, 2010. Leave a Comment
cash chest

If you haven’t already heard, Bona Fide Books is holding a poetry contest. Susan Gunelius wrote about the Melissa Lanitis Gregory Poetry Prize yesterday, and I am sure that aside from the prestige the opportunity offers, the $500 prize is also a good enough enticement. While we’re on the topic of contests and prizes… Have you ever won a prize – cash or otherwise – from a contest?  Let’s say you joined the contest above and you won, what would you do with the prize? Oh, I can count the things that I can use the $500 for.  It may [Read more…]

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When Clients Do Not Pay

By on July 24, 2010. 14 Comments
write off

It’s every freelancer’s nightmare – when a client suddenly disappears after the goods have been delivered. You find a client, and you strike a deal. At the agreed time, you turn in your deliverables. Your client – and the money due you – is nowhere to be found. If you’re dealing with a person face to face, it might be easier to follow up on the payment. If you’re dealing purely via the Internet, it will be much more complicated. Worst case scenario – you do not get paid for your work. While this hasn’t happened to me yet, I [Read more…]

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How to Solve Freelance Tax Problems

By on January 3, 2010. 2 Comments
Taxes

by Thursday Bram When something goes wrong with an employee’s taxes, her employer is often responsible when everything is said and done. For freelancers, though, no employer is going to take the time to correct errors. That means that you have to take responsibility for making sure that all of your paperwork is in order and, if it isn’t, that you take the right measures to keep the IRS happy. Contact the IRS Staying in touch with the IRS can simplify most of the problems a freelancer can face when it comes to taxes. In most situations, such as late [Read more…]

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3 Ways to Reduce Your Freelance Writing Taxes and Help Yourself

By on December 23, 2009. 5 Comments
Taxes

by Thursday Bram One of the reasons employers can afford to offer benefits like health insurance and retirement plans to their employees is because there are tax benefits available when they do so. They’ll have to spend money either way — the question is whether they spend that money on benefits for employees or on taxes. The same is true for freelancers. Retirement While the exact tax benefits of opening and funding a retirement account depends on the type you use, some can make a big difference in the taxes you owe this year. The Traditional IRA, for instance, allows [Read more…]

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Freelancers and Taxes Part 2: Introduction to Quarterly Taxes

By on November 10, 2009. 1 Comment

by Thursday Bram The biggest difference between doing your taxes as an employee and doing them as a freelancer, at least in the U.S, is figuring out just what to do about quarterly estimated income tax. Since your clients pay you as a contractor, rather than an employee, they do not make sure that the IRS receives your payroll taxes. Instead, you’re responsible for sending in a check every quarter for a fourth of the amount you expect to owe at the end of the year. Not Every Writer Has To Pay Quarterly Estimated Taxes In general, it seems like [Read more…]

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Tax Tips for UK Freelancers

By on November 5, 2009. 2 Comments

by James Hendicott Working for yourself is great, isn’t it? You get an open schedule, a nice mixed bag of employers and plenty of creative freedom. Wait, nobody told you about the paperwork? Well, if you’re a casual freelancer with a small income, you might not have to worry too much (see how to pay, and how to calculate payments). If this is the start of something big, though, you’d better get on with registration… here’s a quick lowdown on freelance tax issues to get you started: How to register with HMRC: So you’ve just received that first fulfilling payment [Read more…]

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What Every Freelance Writer Needs To Know About Taxes

By on November 3, 2009. 7 Comments
Taxes

by Thursday Bram If you’re making the switch to freelancing, it’s easy to miss some of the details that go along with completing your taxes. There are some major differences in the paperwork if you’re working for a company or if you’re self-employed. While there are plenty of ways to save money on your taxes or even make them easier to complete, there are some nuts and bolts that every freelance writer should know. The Question of Quarterly Estimated Tax Payments As a freelancer, you don’t have a boss — which means that you don’t have anyone handling your taxes [Read more…]

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