What are the tax implications of freelancing?

What are the tax implications of freelancing?

Freelancers are considered self-employed, which means they must pay self-employment taxes. This includes Social Security and Medicare taxes.

Do I need to pay estimated taxes quarterly?

Yes, as a freelancer, you typically need to make estimated tax payments quarterly to avoid penalties.

What deductions can I claim as a freelancer?

You can claim deductions for business expenses like home office, supplies, and travel related to your work.

How do I keep track of my expenses?

Using accounting software or apps can help you track your expenses easily. You can also keep receipts and categorize them.

What happens if I don't file my taxes on time?

If you don't file on time, you may face penalties and interest on any taxes owed. It's important to file even if you can't pay.