Being a freelancer has several advantages. You work on your own time, on projects of your choosing, and at your own pace. It’s a terrific opportunity to earn additional money doing something you’re good at – or, even better, something you enjoy, whether it’s your full-time work or just a side gig! However, there is one caveat: being self-employed means you are solely responsible for calculating and paying your freelancing taxes.
The Conclusive Guide to Paying Taxes as a Freelancer
In a typical job, you fill out a W-4 form when you are employed, and your company deducts the applicable taxes from your paycheck automatically, If that doesn’t happen you can always use a paystub generator. When you file your tax return each year, you can usually count on receiving a large check from the IRS. However, as a freelancer, it is not so simple. Your taxes aren’t deducted automatically from your paychecks, so it’s up to you to make sure you pay enough and on time.
Of course, this doesn’t mean you shouldn’t work for yourself; it just means you need to know what you need to do to avoid any major shocks come tax season.
