Working as a freelancer can give you so much flexibility and freedom. If you’ve just started as an independent contractor or freelancer and haven’t given any thought to your taxes by now, you could be making a big mistake. Taxes tend to be a bit more complicated when you’re not getting a typical paycheck, and many first-time freelancers end up learning this the hard way.
With this tax guide from CPA Accounting & Tax Services of Orlando, you don’t have to let your taxes stress you out or sidetrack your new career. If you want even more peace of mind, be sure to look into all of the tax and financial services that CPA Accounting & Tax Services of Orlando provides.
Estimating Your Yearly Tax Payments
Whether you choose an LLC or not, one thing all freelancers and contract employees need to do is to pay their taxes. This typically means paying estimated taxes and you can use these tips:
● Understanding the basics around quarterly tax payments is crucial for freelancers.
● Because you are self-employed, you also need to do research on self-employment tax.
● Instead of figuring out all of this solo, work with experts like CPA Accounting & Tax Services of Orlando.
Avoiding Penalties and an IRS Audit
Doing your taxes for the first time as a freelancer or contract employee can be pretty tricky. That’s why professional tax preparation services are highly recommended. Together with these essential tips and suggestions, you can avoid the stress of IRS penalties and audits:
● Preventing common mistakes, like not keeping detailed records, can help freelancers.
● You should also be careful that your yearly tax returns do not include any IRS red flags.
Taxes don’t have to trip you up if you just started getting paid as an independent contractor or freelancer. Start by investing in professional services from CPA Accounting & Tax Services of Orlando so that you will have expert guidance from the start. Also, make sure you are aware of some of the most costly tax mistakes and how to prevent IRS problems