Freelancing gives you freedom, but it also means taking full responsibility for your taxes. Preparing early can save you stress, money, and last-minute panic. Here are a few practical ways to get ahead on next year’s taxes:
1. Track Income and Expenses Consistently:
Use accounting software or a simple spreadsheet to record every payment and expense. Categorize them clearly—this makes tax time easier and helps you catch deductions you might otherwise miss.
2. Set Aside Money for Taxes:
Freelancers don’t have taxes automatically withheld, so aim to set aside 25–30% of your income in a separate savings account. This ensures you’re covered when quarterly or annual payments are due.
3. Pay Quarterly Estimated Taxes:
The IRS expects freelancers to pay taxes throughout the year. Mark your calendar with the four quarterly due dates and submit estimated payments to avoid penalties.
4. Save Receipts and Keep Digital Copies:
Receipts for business-related purchases, software subscriptions, home office supplies, or mileage can add up to significant deductions. Save them digitally in a folder or use an app that stores them securely.
5. Work With a Tax Professional:
A tax pro who understands freelance income can help you identify deductions, navigate self-employment tax, and stay compliant with IRS rules.
-Jamie Lindemulder
jamielindemulder.com 
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