Self-Employed Quarterly Taxes
While filing taxes as a freelancer may occur quarterly, as opposed to having taxes taken out like when you work for most corporations, there are some upsides to paying your taxes more often. I know what you’re thinking – how could there possibly be an upside to filing taxes more often? Well, freelancing and taxes become painless once you have a better understanding of the process.
Firstly, by breaking up these payments throughout the year, you can manage your self employed quarterly taxes more easily and have less risk for disrupting your cash flow. So, here’s what you really need to know about filing taxes as a freelancer. You are usually eligible for freelance tax deductions on things such as: advertising, website expenses and home office expenses. Freelance tax deductions are extremely important, because the costs associated with your self-employment will be deducted from your income, thus leaving you with less to pay in taxes and more money in your pockets. Cha-ching!
However, be mindful of keeping very detailed records of your expenses, to save you time and stress when you have to submit this information to the government. Additionally, you may want to consider hiring an outside party to help you uncover freelance tax deductions you are unaware of. Even if this costs you a reasonable sum of money, it is likely to save you even more on your self employed quarterly taxes in the grand scheme of things. This will help you to calculate your taxable income as a business owner.
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Paying Quarterly Taxes Online
Paying quarterly taxes online can simplify the tax process even further. Once you’ve calculated your quarterly payments, there are a number of options you can choose from. You can submit them via the Electronic Federal Tax Payment System or head over to the IRS Website and make an online payment. Of course, you can skip all of that by downloading Sabius and letting it put your payment on autopilot, too!
By paying quarterly taxes digitally, you can ensure a fast, secure, an immediate payment. Plus, if file your quarterly taxes online you can do it from the comfort of your own home. We wont judge you if you choose to do it in your undies!
If you are self-employed, you will probably encounter the 1099 self employment tax. The 1099 self employment tax stems from your clients, and holds you accountable for paying taxes based on the work you provided for them. This tax exists for self employed individuals in order to cover social security and medicare.
Freelancing and taxes can seem confusing at first, but really all it entails is making sure the taxes on your freelance income goes to Uncle Sam. Taxes on freelance income will fully depend on the detailed bookkeeping of your expenses, and again, can be significantly reduced with the help of tax deductions. Staying on top of your self employed quarterly taxes can also help to keep your schedule more regimented and efficient, since as a freelancer, you’re often working on a fluid and unpredictable schedule. Luckily, Sabius is here to make your life better.