From the course: Freelancing Tips

Unlock this course with a free trial

Join today to access over 24,900 courses taught by industry experts.

Basic tools and information for taxes

Basic tools and information for taxes

From the course: Freelancing Tips

Start my 1-month free trial Buy for my team

Basic tools and information for taxes

“

- Chances are you got into freelancing because you were excited about the work that you do for your clients. I don't know many freelancers that get excited about managing expenses and doing their taxes. But as freelancer, you run a small business, and doing your taxes is part of the job. So the easier you can make the process, the happier you'll be. Thankfully, there are a few basics to know for a freelancer and several software tools that can help. Let's start with your tax rate. Typically, in the United States, you'll want to budget 30% of your income for self-employment taxes. That means for every dollar you earn, at least 30 cents will go to the government. But the good news is, that rate applies to your net income. That means that before your income is taxed, you can deduct certain types of expenses from the taxes you owe. Things like mileage, office rent, supplies, and more. So you'll want to categorize these and keep track of them separately throughout the year, so you can…

Contents