Tag Archives: taxes

Managing Freelance Writing Income and Regular Income

By on May 6th, 2013

For most people transitioning into full-time freelance writing or freelance writing on the side for awhile, there will undoubtedly be a period of time that you’re managing two kinds of income: income from freelance writing and income from a regular job. Or if you’re a writer who’s married to or cohabitating with someone who earns a regular income, the two of you may also face the challenge of managing two types of income. Freelance writing income alone can be tough to manage because it can be highly irregular. Couple that with income from a regular job and it’s natural to …

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When Your Writing Schedule Leaves No Time For Taxes

By on April 8th, 2013

The deadline for filing a tax return this year is Monday, April 15th. That’s just seven days away! I know there are some of us who filed our tax returns as soon as the IRS began accepting tax returns. Others of us may be too busy writing (trying to make enough money to pay the tax bill?) to get those tax returns done before the tax deadline. Don’t fret; you may be able to get a few months breather. The IRS allows us (U.S. taxpayers) to file for an automatic extension for the tax return. Once you apply for the …

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Freelance Writers: Tips for Paying Estimated Taxes

By on February 25th, 2013

Ah, taxes. It’s almost all you hear and read about this time of year, but we freelance writers have been thinking about taxes all year long. That’s because we, along with other self-employed workers, are required to pay quarterly estimated taxes to the IRS four times a year: in January, April, June, and September. If you’ve ever paid too little or *gasp* not paid at all, then you know there’s a penalty for underpaying based on the amount you underpaid and how late you end up paying what you we. Here are some tips for making those tax payments with …

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Posted in Finance |

A Primer on Taxes for Freelancers

By on January 14th, 2013

Every worker, freelance or not, is undoubtedly familiar with income taxes: the percentage of your income that’s paid to the Federal, state, and sometimes local government. (The rest of this post speaks primarily on Federal taxes.) When you’re full-time employed by an employer, the employer will typically withhold taxes from your pay. They send the withholdings to the IRS on your behalf. But, when you’re fully self-employed, it’s your responsibility to withhold your taxes and pay that amount the government on a quarterly basis. Tax Brackets Taxes are paid as a percentage of your income. There’s not a flat percentage …

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Freelance Writers Have to Pay Quarterly Estimated Taxes

By on June 8th, 2012

By: Jennifer Dunn (for Outright.com) Freelance writing can be very stressful. Some months new clients are beating down your door (well, email account). The next month, you’re scrambling to write grocery lists for a little bit of cash. It all comes and goes so fast and it’s tough to maintain a monthly rhythm. Which is why when quarterly estimated taxes come along many freelancer writers just wave their hands in dismay and say they’ll handle it later. After all, with all that other nonsense going on – marketing, negotiating rates, and oh yeah, writing – how are you supposed to …

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Posted in Finance |

The “Live on the Rest” Budgeting System

By on January 16th, 2012

For many self-employed workers, taxes and savings are the two hardest expenses to keep up with. I think it’s because there’s no immediate benefit or consequence to either of them. A lot of people mentally plan their budgets based on a certain dollar amount that often hasn’t been adjusted for taxes or savings. So you might end up spending all your money and not having anything left for either of these two. Living Expenses/Taxes/Savings Ratio This “live on the rest” budgeting system isn’t something I made up. I’ve read about it over and over in personal finance books, so I …

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4 Types of Tax Deductions

By on January 31st, 2011

The first year I filed taxes, I was so excited I could finally claim church donations on my taxes. Except, it wasn’t really worth it to claim the donation because my itemized deductions were less than my standard deduction. Yep, even though you qualify for a certain tax break, it’s not always beneficial to take it. Deductions allow you to lower your taxable income and indirectly lower your income tax liability by a percentage. Many taxpayers aim to take as many deductions as possible so they pay less money to the government. Standard deduction The standard deduction is a fixed …

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5 Money Moves to Make Before Year-End

By on December 6th, 2010

A lot of people are focusing on holiday shopping this time of year. Personally, my workload has increased and I haven’t given shopping much thought. (I really need to get on that!) But I have thought about my finances and some things I need to do as the year comes to a close. There are tons of year-end money lists out there and they all talk about decreasing taxes, selling investments, and saving for retirement. There are a few other things I like to think about when the year ends. Evaluate your performance against your goals. At the beginning of …

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Limited Time Only: Tax Break for Us Self-Employed Folks

By on October 11th, 2010

If you’re fully self-employed and pay your own health insurance premiums, you’ll get a tax break for the 2010 tax year. Last month, President Obama signed a law that lets self-employed workers take a deduction for health insurance premiums paid for yourself and dependents. Changes to Health Insurance Premium Deduction We owe two types of taxes to the Federal government – Federal income tax and self-employment tax. You can reduce the amount of tax you owe by taking certain tax deductions – one of them being the cost of health insurance. We’ve always been able to deduct the cost of …

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What to Do When You Can’t Pay Your Taxes

By on March 29th, 2010

I haven’t logged into TurboTax since the beginning of February, when that big red $1,254 showed up on the screen. I knew I would have a tax bill this year and set aside some money for it every month. I’m not ready to give up that much money yet so I’m holding out as long as possible. But for the sake of argument, let’s talk about the options available when you don’t have enough money for your taxes. What You Should Do Look for more deductions. You could go back through your taxes to find any deductions you may have …

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Posted in Finance, Freelance Writing Business |