5 Money Moves to Make Before Year-End

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

Managing Freelance Writing Income and Regular Income

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

When Your Writing Schedule Leaves No Time For Taxes

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

Freelance Writers: Tips for Paying Estimated Taxes

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

A Primer on Taxes for Freelancers

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

Freelance Writers Have to Pay Quarterly Estimated Taxes

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

The "Live on the Rest" Budgeting System

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

4 Types of Tax Deductions

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

What to Do When You Can't Pay Your Taxes

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

How to Take the Home Office Tax Deduction

One of the reasons you decided to work freelance, whether part-time or full-time, is to have the chance to work from home. You may receive some tax benefits from having a home office. Read on to learn how can you take the home office deduction on your taxes. Home Office Deduction Rules First, the IRS requires you to use your home office “exclusively and regularly”

How to Calculate and Pay Your Own Income Tax

The two things I loathe about a freelancer’s finances are health insurance and income taxes. I thought I hated paying taxes when I worked full-time for someone else. Seeing the money that was taken out of my paycheck was depressing. I didn’t know how good I had it. Paying tax as a freelancer is even worse. Not only do we pay more taxes, we have