Self-Employed Tax Tips for People New to Freelancing Read the Article Open Share Drawer Share this:Click to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Pinterest (Opens in new window)Click to print (Opens in new window) Written by Brie Weiler Reynolds Published Dec 13, 2016 - [Updated Mar 13, 2017] 3 min read If you’re a first-time freelancer, it may be a bit nerve-wracking to think of handling your own taxes as a newly self-employed filer. But with a little organization and forethought, managing your taxes is actually quite doable! Even if you’re freelancing as a side gig while maintaining a traditional full-time job, tax laws for self-employed apply to you. So, if you’re new to freelancing, here are some tax tips you’ll want to know. If you haven’t started filing quarterly taxes, you may need to. If you think your tax bill for 2016 will total more than $1,000 AND you expect to continue freelancing in 2017, the IRS will expect you to start paying your taxes quarterly rather than yearly because you are not having taxes withheld on a regular basis like you would do through an employer (Social Security, Medicare, FICA, etc). So, on April 18, 2017, you’ll not only be responsible for filing your 2016 taxes, but also your first-quarter 2017 taxes (for January 1 through March 31). You also have a chance to pay your last quarter estimated taxes for 2016 by January, 17, 2017. Be prepared for quarterly tax filings by getting all of your ducks in a row now. The rest of our tips will help you do that. Start getting your documents in order now. Sure, tax season seems like a distant prospect, but April will be here before you know it. Receipts for business-related expenses, payments you received from clients, and other paperwork are needed to complete your taxes. Make sure to keep everything organized so when tax time rolls around you have it all compiled and ready when you sit down to do your taxes. Know which deductions you might be entitled to. Do you know which deductions you can take as a freelancer? Software programs like TurboTax, can help you identify all the deductions you might qualify for. You may be eligible for some of the top tax deductions related to health insurance, home office space and supplies, car or transportation expenses, continuing education programs, and even magazine or newspaper subscriptions. There are a lot of business deductions that you don’t want to miss out on to reduce your tax liability and save money for your business. It’s okay to take the home office deduction. The home office deduction used to be seen by many people as a red flag that could land you an IRS audit, but that’s not the case! The IRS has actually made it easier to calculate and take this deduction in recent years, so even if you’re a first-time freelancer working mostly from home, the process isn’t complicated. As long as you meet the IRS qualifications for taking the home office deduction, you can proceed and get savings for your work at home. People who are filing taxes as first-time freelancers have a few key points to learn, but don’t worry about knowing the tax laws. TurboTax will ask you simple questions about you and your business and give you the tax deductions and credits you deserve based on your answers. Previous Post I Received Form 1099-MISC… But I Don’t Own a Business! Next Post Introducing TurboTax Self-Employed for 55 Million Self-Employed Americans Written by Brie Weiler Reynolds Brie Weiler Reynolds is the Senior Career Specialist at FlexJobs, the award-winning site for telecommuting, flexible schedule, and freelance job listings. She aims to provide practical information and resources to help people overcome their roadblocks and discover career happiness. With a background in human resources and career advising, Brie has 12 years experience working with job seekers and employers, and she offers career, hiring, and work-life balance advice through the FlexJobs Blog and media outlets like Fast Company, Forbes, and NBC News. Find Brie on Twitter, @briewreynolds. More from Brie Weiler Reynolds Leave a ReplyCancel reply Browse Related Articles Tax News Intuit TurboTax April Report: A Look at Refunds and S… Tax Planning April 15 is the Tax Deadline: 6 Things You Need to Know… Tax Planning Unable to Pay Your Tax Bill? Here’s What To Do Tax Tips Tax Credits 101: What They Are & How They Work Business How to Know if You Should Invest in Business Insurance Tax Deductions and Credits What Is the Standard Tax Deduction for 2023 – 202… 401K, IRA, Stocks Should You Use Your 401(k) or Retirement to Pay Off Deb… Tax Planning What Happens If You Don’t Pay Taxes? Understanding Pe… Tax Deductions and Credits Family Taxes: Take Advantage of Tax Savings Taxes 101 How Much Do You Have to Make to File Taxes? Demystifyin…