Our personal and professional lives often blur as freelance writers, since you might complete a few assignments during the morning at a cafe, attend a sports event or birthday party, and then resume your work in the evening. Many are drawn to the freelance lifestyle because it gives you time and location flexibility that few jobs can offer. However, you can become shackled by poor spending habits, especially if you don’t watch your money management while working. Here are a few tips on sustaining your freelance lifestyle without breaking the bank.
The benefits of being your own boss outweigh the advantages of working a 9 to 5 job – we’ve already established that. Sometimes, though, we might forget that there are certain responsibilities attached to being a freelancer. For sure, we KNOW these responsibilities are there, but especially for those new to the freelance business, little things might slip by you every now and then. When it comes to taxes, the need to track your income is paramount. After all, how will you be able to declare your income and compute taxes accurately if you do not follow some one system [Read more…]
Last week I wrote about how, like it or not, keeping track of tax deductions is a year-round job for freelance writers. Yes, I know. Yuck. Don’t you hate when people are part of the problem and not part of the solution? For that reason, I decided to follow up with a post about what you need to know about keeping track of those pesky deductions throughout the year. Hang on to Receipts First, keep receipts or invoices for anything you purchase that could even remotely be considered part of your business. Even if you aren’t sure whether your book [Read more…]
Wait, what? But April 15th just passed, you’re saying. Can’t I please get a break from all this tax talk? Sadly, no. While they’re no fun to think about, if you’re a freelance writer, tax deductions are a part of your life all year round. And trust me, you want to think about tax deductions because they’re going to save you money in the long run. What Can I Deduct? Almost anything you buy to use in your business can be deducted on your taxes. In the past, respectable tax payers have been able to convince the IRS that cat [Read more…]
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…]
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…]