4 Year-End Tax Tips for Freelancers
As a freelancer, you get to enjoy the freedom of setting your own hours, establishing rates that reflect your effort and talent, and generally calling the shots. But if there's one drawback to being self-employed, it's the hassle of dealing with taxes. With that in mind, here are some tips that will help you avoid a world of hassle during the upcoming tax season -- and perhaps save you some money in the process.
When you're self-employed, you don't have taxes withheld from your earnings. As such, you're required to pay that tax as you go via estimated quarterly payments. Though your final payment for 2019 isn't due until Jan. 15, now's the time to figure out what you'll owe the IRS -- and whether there's a way to reduce that number.
Keep in mind that the more you contribute to a tax-advantaged retirement savings plan, the more of your income you can shield from taxes. If you're self-employed and want to cut your 2019 tax bill, you can look at funding a traditional IRA. But if you're a higher earner, you might benefit from a Solo 401(k), SIMPLE IRA, or SEP-IRA instead.
Source Fool.com
