Understanding Your 1099 Form As A Freelancer
Tax season is just around the corner. The beginning of each year brings resolutions, a new start, and a review of last year's finances. Depending on your employment and your life situation you will either be required to pay taxes or you will receive a tax return.
Freelancer jobs in America have grown exponentially in the past decade as more and more individuals are opting to perform their work or offer their services to different companies from the comfort of their own home or office.
But the easy and potentially substantial income that is attached with freelance work still needs to be accounted for in the form of taxes; and, unlike those who are working for a structured company or organization, those who perform freelance work have the added responsibility of keeping track of their own taxes.
In a company or organization, it is most often the case that the employer will withhold a certain percentage from each paycheck so that a person can fill out a W2 tax form during the tax season and pay their taxes from those withheld funds, but for freelancer this is not the case.
What Deductions Should I Look For? - The deductions that you qualify for will differ for every individual. It is recommended that you speak to a professional who understands tax law and the intricacies of how it works. Many people choose to do their own taxes each year, and collectively they miss out on millions of dollars by neglecting to deduct some of the following items.
The concept is pretty simple. You get what you give in life. For instance, if you give love then you get love back. If you give time to somebody then you get time back. The same goes for money as well. So for those who are being stingy and trying to save up they may be hitting a plateau. If they would just let go of the thing that is starting to control their lives then they might actually gain control over things.
Tuition - There are several deductions and credits related to higher education. If you're a student, you want to make sure that you do not miss out on those. The amount that you are able to deduct depends on your income, so check with an accountant or tax professional to see what you qualify for.
One of the main benefits of being an independent contractor, or freelance worker, is that you can deduct many things from your taxes as business related expenses. One of the major deductions that freelance workers can deduct from their taxes is their own health insurance costs as well as the health insurance costs of your spouse and your dependents.
The world of taxes can be a disastrously complicated place, especially once legal actions are taken by the IRS. To help you with all of your freelance tax questions and issues, first contact a professional tax accountant to help file your taxes correctly and then contact a certified tax lawyer if legal issues arise in your tax reporting as a freelancer.
Freelancer jobs in America have grown exponentially in the past decade as more and more individuals are opting to perform their work or offer their services to different companies from the comfort of their own home or office.
But the easy and potentially substantial income that is attached with freelance work still needs to be accounted for in the form of taxes; and, unlike those who are working for a structured company or organization, those who perform freelance work have the added responsibility of keeping track of their own taxes.
In a company or organization, it is most often the case that the employer will withhold a certain percentage from each paycheck so that a person can fill out a W2 tax form during the tax season and pay their taxes from those withheld funds, but for freelancer this is not the case.
What Deductions Should I Look For? - The deductions that you qualify for will differ for every individual. It is recommended that you speak to a professional who understands tax law and the intricacies of how it works. Many people choose to do their own taxes each year, and collectively they miss out on millions of dollars by neglecting to deduct some of the following items.
The concept is pretty simple. You get what you give in life. For instance, if you give love then you get love back. If you give time to somebody then you get time back. The same goes for money as well. So for those who are being stingy and trying to save up they may be hitting a plateau. If they would just let go of the thing that is starting to control their lives then they might actually gain control over things.
Tuition - There are several deductions and credits related to higher education. If you're a student, you want to make sure that you do not miss out on those. The amount that you are able to deduct depends on your income, so check with an accountant or tax professional to see what you qualify for.
One of the main benefits of being an independent contractor, or freelance worker, is that you can deduct many things from your taxes as business related expenses. One of the major deductions that freelance workers can deduct from their taxes is their own health insurance costs as well as the health insurance costs of your spouse and your dependents.
The world of taxes can be a disastrously complicated place, especially once legal actions are taken by the IRS. To help you with all of your freelance tax questions and issues, first contact a professional tax accountant to help file your taxes correctly and then contact a certified tax lawyer if legal issues arise in your tax reporting as a freelancer.
About the Author:
Tax Crisis Institute provides what you need to resolve any collection problems you have with the Internal Revenue Service or any other taxing authority. We can stop them from placing a tax levy on your wages, bank accounts, pensions, and savings. We can prevent them from seizing your house or business. We will give you tax debt help just as we have for many others. We will fight to protect you!