What You Should Know As A Freelancer

Freelancing as your main source of money is the best of both worlds. Not only do you have the potential to make a lot more money, but you’re also able to pick your hours and shifts. Making money on your own time and being your own boss for the most part, is a great way to live your life how you want, and earn a substantial amount of money while you’re doing it. However, there are a few things that you should know as a freelancer, and this article will help you out.

First and foremost, it’s important to understand that as a freelancer, you’re usually considered a contractor. Being a contractor means that you’re not necessarily employed by a company, but you’re hired as a contractor. This does not make much of a difference when it comes to work, but the person paying you can not set your hours or where you’re supposed to work. You’re completely in control of when and where you work, as long as you finish a certain project by a deadline. This can be great for many people, but it’s a lot different when it comes to taxes. Because you’re not considered an employee, you’ll have to end up paying more taxes, as well as all of your taxes at once, and on your own. If you’re living under the poverty line, however, you can usually get an EFIC. Most contractors will be filing a 1099 form, which means you’ll also have to pay your own employer taxes.

Because of your tax consideration, this means that you’ll also be able to use your business’s expenses to take off the cost of your taxes. Make sure that you’re always tracking everything you spend for your work, as well as keeping all the receipts and keeping them organized. You’ll be much happier when it comes tax time and you’ll be able to take off large amounts of money from things that you spent money on for your job. This include the gas it took to drive to places for work, staying at hotels, computers you buy for work, phones you use for contacting clients and the bill, and many more things. You can end up saving money on all kinds of things.

Make sure that you organize all this information and keep everything you can backed up online in safe place, as well as at home. Get a file cabinet from Amazon for all of your tax and work information and label it as needed for easy access.

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