#Estimated tax payments freelancers

[phantomrose96]

I never understood the concept of "doing taxes". Taxes are just there and you just pay them, like everytime you buy something it includes a tax you have no other choice but to pay it, what do you have to do?? (I live outside the USA)

Oh fun! I get to explain U.S. taxes!!

(disclaimer: if you're a young adult in America who will have to learn to do taxes soon, please don't take this as a reason to panic. It IS absurd and it is kinda stressful the first time you do it, but you get a handle on it, and filing services like FreeTaxUSA walk you through it and do all the math parts for you. [Though learning the math parts yourself is kinda smart if you want to understand what you're doing.])

(other disclaimer: I might have some details wrong because I'm a random blogger and not an accountant. Accountants don't maul me please.)

So it's true that tax is included when you buy something, but the whole "doing taxes" in America is about income tax.

My experience is with a company that does withholdings (god bless all you freelance workers figuring it all out for yourselves.) Withholdings means my company will estimate how much tax I should owe and take it out of each paycheck to give to the government. So from a $1,000 paycheck, they might withhold $300 to pay taxes with, and gives you the remaining $700.

But that might NOT be right. So in April every American has to go crunch all the numbers and figure out if they paid the right amount :) (chances are the answer is no).

We get a form called a W-2 (god bless, I only have one W-2 because I work just one full time job) which includes *adjust glasses*: employer's name, your info, your federal ID number, your social security number (partially redacted), your total wages, your federal income tax withheld, your social security tax withheld, your medicare tax withheld, your deferrals with things like 401k contributions, tips, dependent care benefits, STATE income tax withheld (my state has a 5% income tax, on top of the federal income tax) AAAAAAND other boxes I won't even bother with.

You feed this into software (like turbotax, which CHARGES you to do this, but I used FreeTaxUSA which had free federal filing and almost-free state filing) - RIGHT, you file federal and state SEPARATELY. And you owe/receive SEPARATE amounts.

America has tax brackets, which means you owe x% of money you make between--actually, lemme get the fucking chart

fucking delightful.

So if you make $50,000, as a single filer, you owe 10% of the first $10,275, then you owe 12% of the next $31,500 (that's the amount between $10,275-$41,775, in the second row), then 22% of the remaining $8,225 (cough and then also state income tax if you have it cough). It's a little bit like filling up a thermometer, and the amount between each tick mark is what you owe x% of.

BUT WAIT. THERE'S DEDUCTIONS.

DEDUCTIONS are where most of the complexity comes from. Because there's like 1,000 random things that can give you a tax break. And there's also the standard deduction of $12,950.

What's the deduction? It's an amount of your income that qualifies as tax-exempt. So for the $50,000-earner, if they go with the standard deduction of $12,950, then only $37,050 of their income is taxable. So FORGET that calculation above, it's now 10% of the first $10,275, and 12% of the remaining $26,775

But if your itemized deduction is higher than your standard deduction, it's in your interest to calculate all your itemized deductions and use those, if they add up to more than $12,950

My itemized deductions were almost higher than the $12,950, between my state income tax contribution, property tax contribution, and mortgage interest payments. Other people might have a fuckton of other things--uh like dependents, business expenses, uh I'm not even sure since I skim past all the ones that don't apply to me.

OH, ALSO, THERE ARE OTHER FORMS YOU MIGHT HAVE TO PROVIDE BEYOND THE W-2. There are 1099-INT forms for interest made on bank accounts, 1099-DIV forms for money made from stock dividends, and others I don't even know about.

And all my knowledge and experiences comes as someone with relatively simple taxes by U.S. standards.

(The state taxes then have their own things and own deductions and whatever. They're usually kinda less complicated than federal, but they're a separate thing you have to file.)

And after you do all that, it figures out how much tax you SHOULD owe, how much you ACTUALLY paid, and tells you the difference that you owe/are owed.

I got back a decent amount of money in 2019 and 2020. 2021 was preeettty much even. 2022 I OWE a lot of money because, fuck it, I dunno.

[littleststarfighter]

You don't have to answer this at all, just wanted to give some perspective/info from someone who's been doing illustration commissions for about 15 years: in my opinion, it's always better to work backwards from an hourly rate rather than doing value-based pricing.

When working with private individuals as clients, US$30-50/hr is pretty standard for custom freelance stuff depending on experience, but since you're new to commissions I'd recommend offering a discount for the first few slots (both to get things moving, and also to give yourself lower-stakes "training" until you get used to the process—sometimes your workflow will change in ways you didn't expect under the conditions).

Personally, I prefer to offer a fixed quote based on my hourly rate, because that gets any kind of sticker shock out of the way. I estimate the amount of time it'll take me, add ~10% as a buffer, and apply my hourly rate. The fixed quote also gives me a little freedom not to stress out if it's taking more or less time than anticipated; I just make a note for my next quote and adjust accordingly.

The hourly rate might seem high to you, as it often does to people who are used to more traditional salary structures. But keep in mind that as a freelancer, you're also your own admin support: you don't bill for time spent emailing, researching, invoicing, etc. Tax can also get a bit complicated if you start doing a lot of freelance work.

My own base (non-commercial) rate is US$60/hr, because I've been doing this for a very long time. Frankly, the reason I have a lot of long-term repeat clients who pay my rate is because I communicate well and deliver on time. I set out a timeline up front with scheduled check-ins at various stages, and then I stick to that timeline no matter what. As someone who's also hired many freelance artists in the past, I know that reliability will win over genius every single time.

Speaking of timelines, ALWAYS be specific about the number and scope of revisions you offer. Depending on the project, I might phrase it as "2 rounds of revisions, with up to 1 hour of work per round" or similar. I bill anything beyond that scope at a higher hourly rate, usually about US$90/hr, billed by the half-hour. This also gives you leverage to say "Sure, I can add a whole new character and completely change the background; that will take about X hours which will put us into hourly billing territory at X rate." Either they'll back down or you'll be well compensated for the trouble, and most importantly (from a client services perspective) you've not told them no, you've given them options and reminded them what they've already agreed to.

In terms of payment plans, I normally require 50% up front (non-refundable) and 50% on final delivery. Since you haven't yet built up a rep as a commission artist, I recommend a lower up-front rate (maybe 20-30%). I do strongly advise getting SOMETHING up front to lock clients in and make sure they can't completely ditch if something happens. Plus, refusing to pay a small deposit is a major red flag.

I offer a 5% discount for complete payment up front, because it's honestly worth that 5% just to not have to deal with chasing people down and sending invoice reminders and whatnot.

I'm sorry to hear you've been going through such a tough time, and I hope this was helpful and not too overwhelming; it's just stuff I wish someone had told me when I was first starting out, and I think it's important for working artists to share info about business practices. I wasn't strict about a lot of things back then (like number of revisions), and it always ended up coming back to bite me. It might seem counter-intuitive, but I promise that thinking through and setting a lot of rules/boundaries up front will save you a lot of stress and trouble in the end.

I seriously want to thank you for this. It's incredibly informative not just for me but I'm sure other start out artists too. You've gone over things that I'd have no idea to do, thank you.

I'm certainly looking into how to pay tax as being in the UK I've never had to work that out before as we have it done for us in most jobs. So that would have been something I'd have forgotten about and it's not something you want to miss. I definitely have to time myself working as I don't know how long I take as I've never thought about that either. I just know I'm slow. It's interesting to see what you'd charge hourly as I see a lot of fan commissions having a low fixed rate depending on what you offer.  So definitely have to look whether to offer that or like you suggest a more freelance rate of pay. I'll admit US$30-50/hr made me gasp but that's because I'm used to working for UK minimum wage (roughly $13 a hr) so that seems a lot to me. Gives me something to think about. Though I worry about pricing people out to begin with what with being quite slow and a nobody. And yes! Never forget about getting a deposit. I learnt that the bad way decades ago when I did try to do a commission and was never paid. That's what made me nervous to even begin as I can be a pushover. So need to be more strict in what I can offer and of course revise too.

Seriously thank you this is so helpful. Like you say there's so much people don't share about getting into freelance and commission work. Getting that step up, even if it's me doing it, is something I've no idea how to even start on. I get people saying why aren't you working in art? But my answer is always 'how?' It's something no one's told me about. How to sell yourself and your work. Even commission work confused me. So please don't worry this is beyond helpful and I'm very grateful for you taking your time to help me. It's been a very rough few months but I'm trying to stay positive. This may help me while I find work. Much love, Lucy 💖

[abundancewithher]

Budgeting Tips

Hey young stars and hearts! As you all may know, i am on my big girl finance journey and if you didn’t know you do! Welcome or welcome back my loves! My name is Mimi if you are just coming across my posts.

My goal is to be a representation for the finance, manifestation, and money mindset for black girls and other POC. I spend a lot of money, that’s okay because i am changing my mindset about money. Instead of surviving in scarcity mindset, choosing to live in abundance mindset. Living in a state of abundance does require a little work.

As much as i changing my mindset into believing i am deserving of more money and that it flows to me effortlessly, I want to actually keep it and not over spend my money that flows to me easily by overindulging.

So, with that being said, here are some budgeting tips i will be implementing into my finances to improve my financial health:

- Assessing Your Financial Situation

Before you can create a budget, you need to understand your current financial situation. Take a peek into those bank credit card statements! This all includes:

- Bank statements

- Credit card statements

- Pay stubs

- Bills and receipts

2. - Calculate Your Monthly Income

Determine your total monthly income, this is very crucial. I cannot stress this enough! This includes your salary, any freelance or side income, rental income, dividends, and any other sources of income. Make sure to calculate your net income (after taxes) rather than your gross income. Write down an estimate in a monthly budget planner, if you don’t have one you can purchase one here, or write it on paper to stay organized.

3. - List Your Monthly Expenses

Make a list of all your monthly expenses. You actually might not have any, but what if you’re down to your last five dollars and Apple just takes that shit? That would be frustrating, right? because you didn’t know it was coming up or that you even had a subscription for anything at all, list that also! These can be categorized into fixed and variable expenses:

- **Fixed Expenses:** Rent or mortgage, utilities, insurance, car payments, and subscriptions.

- **Variable Expenses:** Groceries, dining out, entertainment, clothing, and miscellaneous expenses.

4. - Track Your Spending

For at least one month, track every penny you spend. This will give you a clear picture of where your money is going and help identify areas where you can cut back. Use a spreadsheet, or budgeting app, purchase a budget planner, or write it down in a notebook.

5. - Set Financial Goals

Define your financial goals. These could be short-term (e.g., paying off a credit card), medium-term (e.g., saving for a vacation), or long-term (e.g., retirement savings). Having clear goals will motivate you to stick to your budget.

6. - Create Your Budget

With your income, expenses, and financial goals in mind, create your budget. Allocate a specific amount of money to each category of expenses. Make sure to prioritize essentials (like housing, utilities, and groceries) before allocating money to discretionary spending (like entertainment and dining out).

Example Budget Categories:

Housing: $1,200

Utilities: $200

Groceries: $400

7. - Stay Committed and Be Flexible

Sticking to a budget requires commitment and discipline. Be patient with yourself and remember that it's okay to make mistakes. If unexpected expenses arise, adjust your budget accordingly. The key is to remain flexible and adaptable while staying focused on your financial goals.

These are tips I have created according to my digital budget planner, which can be purchased below. Again, building your finances takes time and discipline but it is very rewarding once you actually start to create a flow and a plan. I am implementing this asap to get ahead of my finances. Have fun with this of course!

Budget Planner

xoxo mimi💋

[meesefr]

do you have any advice on how to price comms in flight rising? I think i'm underpricing a lot right now

Oh boy, long post incoming. I obviously don't know your art/where you live/current prices so I'll try to apprach this based on how I price my work, and touching a bit on what to expect. Gonna make this a more generalised commission pricing post because I've seen this come up a lot.

Tl;dr version = Hourly rate (always above national minimum) + time it takes you on average + extra time calculated outside of pure drawing time + taxes

I personally price commissions on FR the same way I price coms/work anywhere else. For commissions I use flatrates which are in turn based on my hourly. Imo if you're doing FRC coms I'd ALWAYS price higher for gems/tr than for IRLC since their usage is confined to on-site. (I do cheapo FRC coms here and there for stuff like foddart too but it's with the explicit understanding that this is NOT a regular transaction. I would not recommend this for a long-term commission shop.) So for FRC coms I'd convert my standard IRLC price + FRC "tax". How much do I value gems/tr over actual IRL goods etc.

My studio hourly usually ranges from 25$ to 30$ but since most commissions are non-commercial work I stick to a 20$/h range for them. I like doing them and I still want my coms to be accessible to people, so I don't mind a small cut (drawing dragons is fun). So if say... a bust on average takes me about an hour and a half the strictest estimate would be 30$ + taxes. But you want to incorporate the possibility of complicated designs, taking longer for polish/make sure the work is up to your standards, reference gathering, small changes and client communication (transaction fees as well when applicable), so it's always good to leave breathing room. (I usually estimate at least another 40 minutes. It honestly ends up taking much longer most of the time. I've had coms take me 10+ hours longer than my priced estimate because I got too ambitious/excited with the illustration, don't be me.)

Now of course all of this stuff depends on your hourly rate too which is honestly a big debate in and on itself. I think the general commissioner audience is used to significantly lower rates than the industry side might. My main income comes from freelancing, where my rate is considered low end. Outside of Illustration, which is vastly underpayed, most designers and creative freelancers will usually have an hourly rate that ranges from 40-100$/h. 20-25$ is considered entry level. My personal recommendation would be to not go lower than 15-20/h if you're doing commissions professionally, even if you live in a place where that is considered a fairly high hourly wage. If you're still a student or your art doesn't really sell yet at those price ranges because of inexperience I think it'd be better to invest in practicing your fundamentals instead and do other work in the meantime. (Or find another platform! Might be an audience issue and not a skill one!)

Unfortunately most people doing coms (including myself) ARE underpricing. I've seen people that would be senior artists in a company if they were doing concept art instead have similar prices to mine, which is ridiculous. (The average mid level concept artist in-house makes 65k/y. People doing coms at the same skillrange often make >20k/y) But to some degree that is kind of inescapable because of how many other people you are competing with. So I don't doubt one bit that you are underpricing already. Illustrators and commission artists are vastly underpayed which means the average audience is conditioned to significantly lower prices.

Thankfully, specifically on FR from my experience the quality of commissioners you'll get is really high. I'm still not sure if you could get away with strictly fairly priced coms, unless you're very popular/your art is super in demand. But other than that, I do payment upon art delivery and have never had issues with a client except once. Communication/references/respect etc are also really good and folks tend to be very understanding and patient.

Be aware that the audience does get smaller the more fairly you price your stuff. I've kinda noticed that the folks commissioning me tend to be from a smaller pool of people that are also the ones commissioning the other artists with a similar skill level on FR that do IRLC coms. So a small pool of regular commissioners + other really skilled or better than you folks that are also fairly accessible/cheap by industry standards. You start seeing a lot of the same artist names pop up when you scroll down in the dragon's bio for references. You will probably not consistently fill all your slots but your clients will most likely end up being trustworthy/reliable and occasionally repeat customers. (Not surprisingly a lot of them are fellow artists/creatives too, y'all know the pain of the grind lol)

I wish you the best, anon. Sorry for kinda hijacking your question to go in-depth with this lol. I upped my prices a few months ago too and thankfully didn't see a decline in clients even if unfortunately I'm still underpricing. Commissions are just a tough game in general. I hope you'll be compensated fairly! If art is your main gig or you're planning on making it your full-time job, definitely look into freelancing instead long term. It's still tough but at least your rates will be much more acceptable. Take care and good luck!

(P.S. In case you're not paying taxes from commissions yet, check with an accountant if you're over the declare threshold. Different countries have different rules for this. If art is your main source of income you almost definitely have to essentially open a business in most places.)

[jackalxhearts]

losing my mind with taxes. hr block kept sending me returns that didn’t take into account all the estimated taxes I already payed...and like. the person doing the taxes isn’t reading all my documents. and when I spoke to her she didn’t seem to understand what I was saying when I was talking about making quarterly payments as a freelancer. then she tried to upsell me on another product and won’t let me view the forms she’s filling out now because I declined the product. I gave up and said never mind lmao and sent all my documents to a very simple no-nonsense CPA service where they seem to actually understand what estimated payments are (I didn’t use them earlier because idk they already know me at hr block but. this is nonsense)

[enterprisewired]

Best Billing Software – Your Invoicing Companion

Source: Image by AndreyPopov from Getty Images

Share Post:

LinkedIn

Twitter

Facebook

Reddit

Pinterest

In today’s growing business domain, it is essential to include accuracy in your billing as it is a crucial element of any enterprise. Regardless of whether you are a well-established organization or just a startup, billing holds value to make financing easy for everyone. Managing invoices, tracking payments, and ensuring a smooth income cycle is vital for every business.

With the rise in technology, things have become more convenient for everyone. Technology has become our greatest companion, making work easy for us and doing a few tasks on our behalf. Just like that, there are a few software that contribute to making billing practices easy and more accurate. Billing software does the work for you and saves you time to improve productivity.

In this article, we will explore some of the best billing software and learn about their benefits and features thoroughly.

What is billing software?

Billing software is the type of software application that is used to automate and manage the procedure of creating invoices, tracking payments, and managing customer’s billing information. It is majorly used by various businesses with the motive to simplify the billing processes also, reducing errors, and improving the cash flow. Software used for billing has made the process very easy and convenient for all businesses to carry on the practice of billing without any issues or errors.

They can help you make professional and accurate invoices quickly. Nowadays, many software solutions incorporate payment gateways that allow customers to pay invoices online. They can also be used to manage customer data such as contact details, billing history, and payment preferences. They can help provide reports and analytics on billing and payment data, which in turn helps a business to make better financial decisions. 

Types of billing software:

Basic invoicing software: This software primarily focuses on creating and sending invoices.

Subscription billing software: This software helps in managing recurring subscriptions and automated billing for subscription-based organizations.

Comprehensive billing software: This software is known to offer various features such as invoicing, payment processing, customer management, and reporting.

List of Best Billing software:

1. TYASuite

Features:

Time & Expense Tracking

Billing Portal

Invoice Processing

Quotes/Estimates

Contact Database

Tax Calculation

Customizable Invoices

Payment Processing

Website

Source – tyasuite.com

Also Read: Extracting the maximum potential of a Home-Based Business: Medical Billing and Coding Business

2. Zoho Billing

Features:

Time & Expense Tracking

Invoice Processing

Billing Portal

Quotes/Estimates

Contact Database

Mobile Payments

Tax Calculation

Customizable Invoices

Payment Processing

Website

Source – zoho.com

3. Zoho Invoice

Features:

Time & Expense Tracking

Billing Portal

Invoice Processing

Contact Database

Mobile Payments

Tax Calculation

Customizable Invoices

Payment Processing

Website

Source – zoho.com

Also Read: The Best Free Invoice Generator for Freelancers and Small Businesses

4. Bitrix24

Features:

Time & Expense Tracking

Quotes/Estimates

Contact Database

Customizable Invoices

Payment Processing

Website

Source – bitrix24.in

5. Gofrugal

Features:

Time & Expense Tracking

Billing Portal

Invoice Processing

Quotes/Estimates

Contact Database

Tax Calculation

Payment Processing

Website

Source – gofrugal.com

Also Read: Paperless Office Made Easy: Best Document Management Software

6. Invoice Home

Features:

Customizable Invoices

Invoice Processing

Quotes/Estimates

Mobile Payments

Contact Database

Payment Processing

Website

Source – invoicehome.com

7. Skyport Suite

Features:

Payment Processing

Billing Portal

Customizable Invoices

Website

Source – softwareworld.co

8. EQUP

Features:

Mobile Payments

Billing Portal

Invoice Processing

Quotes/Estimates

Payment Processing

Customizable Invoices

Contact Database

Tax Calculation

Website

Source – equp.com

Also Read: Top Software for Nonprofit Accounting: Streamlining Financial Management for Charitable Organizations

9. myBillBook

Features:

Customizable Invoices

Billing Portal

Invoice Processing

Quotes/Estimates

Tax Calculation

Contact Database

Website

Source – mybillbook.in

10. QuickBooks Enterprise

Features:

Time & Expense Tracking

Tax Calculation

Mobile Payments

Contact Database

Billing Portal

Payment Processing

Customizable Invoices

Website

Source – quickbooks.intuit.com

Conclusion

Billing software has revolutionized the way businesses are practicing the billing process. They made their manual task easy by taking over for employees, giving them more time to improve the business and productivity. Software such as TYASuite, Invoice Home, Zoho billing, and many more have made the invoicing and billing process simplified and smooth. Billing software has so many in build feature that makes the task efficient and leave no room for errors. They have also helped by bringing forth billing accuracy that has helped businesses in making sound financial decisions.

[fuchsiabell1]

Income Tax Guide for Employees with Non-PAYE Income in Ireland

Income Tax Guide for Employees with Non-PAYE Income in Ireland

Managing your income tax as an employee with non-PA YE (Pay As You Earn) income in Ireland can seem daunting at first. However, by understanding the rules, knowing your filing obligations, and utilizing the right tax services, the process can become much simpler. This guide offers actionable advice to help you handle income tax for non-PAYE income while staying fully compliant with Revenue regulations.

What Is Non-PAYE Income?

Non-PAYE income refers to earnings that are not automatically taxed through the PAYE system. While PAYE is designed for salaried employees, non-PAYE income can include:

Freelance or part-time earnings

Rental income from properties

Dividend payments from investments

Consultancy work or side gigs

Foreign income

Understanding what qualifies as non-PAYE income is crucial, as the tax treatment for such earnings differs from regular PAYE income.

How Is Non-PAYE Income Taxed in Ireland?

Unlike PAYE, where taxes are automatically deducted by your employer, non-PAYE income requires self-assessment. Employees earning non-PAYE income must:

Register for self-assessment: Use the Revenue Online Service (ROS) to register.

File an annual Form 11: This declaration includes both PAYE and non-PAYE income.

Pay Preliminary Tax: Submit this by October 31st of each tax year to avoid penalties.

Key Tip: Keep meticulous records of all non-PAYE income and allowable expenses to ensure accurate reporting.

How to Calculate Income Tax on Non-PAYE Income

Calculating income tax on non-PAYE income involves understanding tax rates and thresholds. Here’s a simplified breakdown:

Standard Tax Rates: The first €40,000 (approximate, depending on your circumstances) is taxed at 20%, while income above this threshold is taxed at 40%.

USC (Universal Social Charge): Non-PAYE income is also subject to USC, ranging from 0.5% to 8%, depending on your total income.

PRSI (Pay-Related Social Insurance): A standard PRSI contribution of 4% applies.

Revenue provides a detailed tax calculator to help estimate your liability. Use this to ensure you're setting aside sufficient funds for your tax obligations.

Filing Non-PAYE Income: Step-by-Step Guide

To ensure compliance with Irish tax regulations, follow these steps:

Organize Your Records: Gather all documentation related to your non-PAYE income, including invoices, receipts, and bank statements.

Track Allowable Expenses: Expenses directly related to earning non-PAYE income (e.g., office supplies, professional memberships, or travel costs) can be deducted.

Register for Self-Assessment: Log in to the Revenue Online Service (ROS) and complete the registration process.

Submit Form 11: Accurately declare your PAYE and non-PAYE income and claim relevant tax credits.

Pay Preliminary Tax: Ensure this payment covers at least 90% of your estimated liability to avoid penalties.

Common Mistakes to Avoid

While filing taxes, it’s easy to make errors that could lead to fines or audits. Here are some common pitfalls:

Underestimating Non-PAYE Income: Always declare the full amount earned.

Ignoring Tax Deadlines: Missing the October 31st deadline can result in penalties.

Failing to Claim Tax Credits: Ensure you're claiming all applicable credits, such as medical expenses or home-carer credits.

Neglecting Preliminary Tax: Many employees overlook this crucial obligation.

Pro Tip: Work with a tax consultant or use a Revenue-approved filing tool to minimize errors. For personalized advice, consider reaching out to Fuchsia Bell – Chartered Accountants in Ireland, a trusted partner for tax and bookkeeping services.

Benefits of Proper Tax Management

Staying on top of your non-PAYE income has several advantages:

Avoid Penalties: Timely and accurate filing prevents unnecessary fines.

Maximize Refunds: Claiming all eligible expenses and credits can reduce your liability.

Peace of Mind: Knowing your taxes are in order lets you focus on growing your non-PAYE ventures.

Frequently Asked Questions

1. Do I Need to File a Tax Return if I Earn Only Small Non-PAYE Income? Yes, even small amounts of non-PAYE income must be declared. However, if your non-PAYE earnings are below €5,000, you may use a simplified filing method through Form 12.

2. How Do Tax Credits Apply to Non-PAYE Income? Tax credits such as the Personal Tax Credit or Employee Tax Credit reduce your overall liability and apply to both PAYE and non-PAYE income.

3. Can I Use PAYE Anytime App to Manage Non-PAYE Income? No, the PAYE Anytime App is only for PAYE-related taxes. For non-PAYE income, you must use the Revenue Online Service (ROS).

[treeoflifefinancial]

Tax Planning for Freelancers and Self-Employed Individuals: Essential Tips

These payments are due in April, June, September, and January. Failing to make payments on time can lead to penalties. By making quarterly estimated tax payments, you can avoid a surprise tax bill at the end of the year. A top accountant in Queens can help calculate the estimated amount and ensure you're on track.

[johnmiller3596]

Can a Tax Accountant Near Me Help With Freelance Taxes?

Yes, a tax accountant near you can definitely help with freelance taxes, ensuring compliance with IRS regulations while maximizing deductions. Freelancers are considered self-employed, meaning they must handle their own tax filings, including quarterly estimated tax payments, self-employment tax, and deductible business expenses. A local tax accountant can assist in organizing financial records, identifying eligible deductions (such as home office expenses, software, and travel costs), and minimizing tax liabilities. Their expertise ensures that you take advantage of every available tax-saving opportunity while avoiding costly IRS penalties.

Beyond tax filing, a freelance tax accountant can provide strategic tax planning to help manage cash flow and optimize financial decisions year-round. They can advise on the best business structure (sole proprietorship, LLC, or S-corp) to reduce tax burdens and ensure long-term financial stability. Additionally, a local tax professional offers personalized support, helping freelancers navigate complex tax laws, deductions, and credits tailored to their specific industry. By working with an experienced tax accountant, freelancers can focus on growing their business while staying financially secure and compliant

[levaajemsan]

Best Free invoicing Software

Are you a business owner or entrepreneur looking for user-friendly, free invoicing software for your small business? With most business taking place online these days, it only makes sense to send invoices online and get paid quickly. Free billing software helps reduce manual entries, enhances accounting accuracy, and saves your business a lot of time and money - Best Restaurant Billing Software.

Depending on the small business type, the requirement for invoicing software changes. For example, freelancers and consultants require simple invoicing software. Whereas, a retail business will need one that can calculate sales tax and scan barcodes.  The best free invoicing apps have evolved, offering various functionalities, from creating estimates and expenses to task management and tracking time to connecting to payment gateways. Invoicely looks like an elevated invoice generator, helping small businesses and freelancers with fewer accounts manage their invoices, bills, and estimates. In Invoicely, users may generate reports, manage client information, track time and expenses, and generate invoices, bills, and estimates - restaurant management software.

The free plan allows professionals to send five monthly invoices, but if you need more features, such as tracking time, expenses, mileage, creating estimates quotes, and business branding, you’d need to upgrade to a paid plan. If you compare it to other free invoicing software offering unlimited invoices, I’d say Invoicely could be dropping that invoice limitation. The free plan allows professionals to send monthly invoices, but if you need more features, such as tracking time, expenses, mileage, creating estimates quotes, and business branding, you’d need to upgrade to a paid plan. For more information, please visit our site https://billingsoftwareindia.in/restaurant-billing-software/

[finsnap]

Tax Tips for Freelancers and Gig Economy Workers in Australia: A Guide to Navigating Your Tax Responsibilities

Freelancers and gig economy workers in Australia face unique challenges when it comes to managing their tax obligations. Unlike traditional employees, these workers are responsible for handling their own taxes, from keeping track of income to claiming deductions and filing their returns. With a range of responsibilities to manage, it's easy to feel overwhelmed. However, with the right strategies and expert assistance, such as from a tax preparation service, freelancers and gig workers can simplify their tax process. This guide will explore key tax tips, highlighting how professional tax services can help ensure accurate filings, maximized deductions, and peace of mind.

Understanding Your Tax Obligations

As a freelancer or gig worker, your tax obligations are different from those of a traditional employee. You're classified as self-employed, meaning you must report all income you earn, whether it's from various clients or gig platforms. Accurate income reporting is essential to avoid penalties, and working with a tax preparation service can help you navigate this responsibility. A tax expert can also assist in filing your trust tax returns, ensuring that you comply with Australian tax laws.

For instance, if you're a freelance writer working with multiple clients in Australia and abroad, a tax preparation service will guide you on how to report this income properly and avoid common pitfalls.

GST Registration and Its Benefits

If you earn over $75,000 a year as a freelancer or gig worker, you are required to register for Goods and Services Tax (GST). This means you will need to charge your clients 10% on top of your fees. However, you'll also be able to claim back GST on eligible business-related expenses. If your earnings are below the threshold, you may still choose to register for GST, particularly if your clients are other businesses.

A tax preparation service can help you decide whether GST registration is necessary for your situation and guide you through the process of filing GST returns. They can also assist with filing your trust tax returns, ensuring all your income and expenses are accurately reported.

Maximizing Deductions to Minimize Your Taxable Income

One of the biggest advantages of being self-employed is the ability to claim business-related deductions, which can significantly reduce your taxable income. Common deductions for freelancers and gig workers include:

Home office expenses: If you work from home, you can claim a portion of your rent, electricity, and internet bills.

Business-related travel: Fuel, parking, accommodation, and meals for work-related travel are deductible.

Tools and equipment: Any equipment or supplies you use for your business, such as software or devices, may be claimed.

A tax preparation service can help you identify all possible deductions, ensuring you don’t miss out on any opportunities to reduce your tax liability. For instance, if you work from home, a professional tax service can help determine the percentage of your home used for business purposes, maximizing your deduction.

Quarterly PAYG Installments

As a freelancer or gig worker, you may be required to pay taxes quarterly under the Pay As You Go (PAYG) installment system. These payments are based on an estimate of your income, which is calculated by the Australian Taxation Office (ATO). You can adjust the amounts you pay if your income changes throughout the year.

A tax preparation service can help you calculate your PAYG installments and ensure they are accurate. Making quarterly payments on time can prevent you from facing a large tax bill at the end of the year, giving you greater control over your finances.

Superannuation Contributions

Freelancers are also responsible for contributing to their superannuation fund. Contributions to your super are tax-deductible, meaning they lower your taxable income, which could reduce your overall tax bill. By making regular super contributions, you not only save for retirement but also benefit from tax deductions.

A tax preparation service can advise you on how much to contribute to your super fund and ensure your contributions are reported correctly in your trust tax returns.

Professional Help: Why You Should Hire a Tax Preparation Service

Navigating the complexities of tax filing as a freelancer or gig economy worker can be daunting. Working with a tax preparation service can save you time and help avoid costly mistakes. These professionals are experts in tax laws and can ensure that your trust tax returns are filed accurately, all deductions are claimed, and deadlines are met.

For example, if you're unsure about the deductions you're entitled to or how to report income from overseas clients, a tax expert can guide you through the process and ensure everything is compliant with Australian tax laws.

Managing taxes as a freelancer or gig worker in Australia comes with its challenges, but with the right approach and professional support, it doesn't have to be overwhelming. By staying organized, tracking your income and expenses, and seeking assistance from a tax preparation service, you can ensure that your tax obligations are met with ease. Working with a tax expert not only helps you avoid penalties but also allows you to take full advantage of available deductions and minimize your tax liability. With the right guidance, you can focus on growing your business while leaving the tax complexities to the professionals.

[bluespringsincometaxpreparation]

Attention Gig Workers: Tax Tips You Need to Know! If you work in the gig economy, it’s essential to understand how your work affects your taxes. Planning can save you headaches later when it’s time to file your return. What is the gig economy? The gig economy—sometimes called the on-demand or sharing economy—includes people earning income as freelancers, independent workers, or employees using technology to provide goods or services. Examples include renting out a home or spare bedroom or offering ridesharing services. Here’s what gig workers need to know about taxes: 💡 Income earned through gig work is usually taxable, even if: • You don’t receive a Form 1099 or W-2. • The work is part-time or a side hustle. • You’re paid in cash. 💡 Gig workers are generally responsible for: • Income taxes. • Self-employment taxes (Social Security & Medicare). • Additional Medicare taxes, if applicable. 💡 Independent contractors may deduct eligible business expenses, such as car use or home office costs, but you’ll need good records to back them up. 💡 Special rules apply to rental income if you also live in the property part of the year—remember, rental income is usually fully taxable. Two ways to pay taxes in advance: 1️⃣ Adjust withholding at your other job using a new Form W-4. 2️⃣ Make quarterly estimated tax payments directly to the IRS. Being proactive will help ensure you’re prepared when tax season rolls around. Questions about your gig income or how to minimize your tax burden? Contact us today! 📞 816-220-2001

[ajaykumar21]

Getting Ready for Taxes: Essential Guidelines for 2024

Tax season can feel overwhelming, but being prepared makes all the difference. Here’s a detailed guide to essential tax considerations for 2024 to help you navigate the process smoothly.

1. Charitable Contributions

If you’ve donated to charity, only out-of-pocket expenses are deductible. This includes costs incurred for volunteering, such as mileage or supplies purchased for a charitable cause. Ensure you keep proper receipts or documentation for all donations and expenses to claim deductions. Remember, contributions must be made to qualified organizations, and cash donations over $250 require a written acknowledgment.

2. 1099 Forms

If you’ve paid $600 or more to independent contractors, freelancers, or other non-employees, you’re required to issue a Form 1099-NEC by January 31, 2025. This ensures that both you and the recipient report the payment accurately to the IRS. Keep records of all payments throughout the year to avoid last-minute scrambles.

3. Estimated Tax Payments

For income not subject to withholding, such as self-employment earnings, rental income, or investment income, you need to make quarterly estimated tax payments. Deadlines are typically in April, June, September, and January. Missing payments or underpaying can result in penalties, so calculate your payments based on expected income and keep track of due dates.

4. Retirement Contributions

SEP IRAs: If you’re self-employed, you can contribute to a Simplified Employee Pension (SEP) IRA up until March 15, 2025, if you file an extension.

Traditional IRAs: Contributions for the 2024 tax year must be made by April 15, 2025. Maximize your retirement contributions to take advantage of tax-deferred growth and reduce your taxable income.

5. Capital Gains and Losses

When selling investments like stocks or property, keep these tax rules in mind:

You can offset up to $3,000 of capital losses against your ordinary income.

Long-term capital gains (investments held for more than a year) are taxed at preferential rates of 0%, 15%, or 20%, depending on your income level. Document all transactions, and work with a tax professional to determine the best strategies for reducing tax liability.

6. Home Office Deductions

If you’re self-employed and use part of your home exclusively and regularly for business, you may qualify for home office deductions. Deductible expenses include a portion of your rent or mortgage interest, utilities, and maintenance. Use the simplified method (deduct $5 per square foot, up to 300 square feet) or calculate actual expenses for the most accurate deduction.

7. FBAR and FATCA Compliance

FBAR (Foreign Bank Account Report): If the balance of your foreign bank accounts exceeded $10,000 at any time during the year, you must file an FBAR using FinCEN Form 114 by April 15, 2025.

FATCA (Foreign Account Tax Compliance Act): If you hold foreign financial assets above the threshold ($50,000 for individuals in the U.S.), report them on Form 8938 along with your tax return. Non-compliance can result in significant penalties, so ensure all foreign assets are reported accurately.

8. Rental Income

If you own rental properties, you must report all rental income on your tax return. Deductible expenses include mortgage interest, property taxes, repairs, insurance, and maintenance. Keep detailed records of all income and expenses to substantiate your claims. If you’re renting part of your home, only expenses related to the rental portion can be deducted.

9. Gift Taxes

For 2024, gifts exceeding $18,000 per recipient require you to file a gift tax return (Form 709). The annual exclusion amount increases to $19,000 in 2025. However, most taxpayers won’t owe any taxes due to the unified estate and gift tax exemption, which allows up to $13.61 million in lifetime exclusions in 2024.

10. Estate and Inheritance Taxes

The estate tax exemption for 2024 is $13.61 million per individual. Any inheritance below this amount is not subject to federal estate taxes. If inherited assets are sold immediately, beneficiaries may avoid capital gains taxes, as the cost basis typically steps up to the fair market value at the time of death. Work with an estate planning expert to make the most of these benefits.

Seek Professional Guidance

Tax rules can be complex, and every taxpayer’s situation is unique. To ensure you maximize deductions and comply with IRS requirements, consult a tax professional. Early preparation helps reduce stress and increases your chances of filing an accurate return.

Prepare now and stay ahead of the game for 2024!

For more Information Contact Us: https://www.saicpaservices.com/ or (908) 380-6876

https://www.facebook.com/AjayKCPA

https://www.instagram.com/sai_cpa_services/

https://twitter.com/SaiCPA

https://www.linkedin.com/in/saicpaservices/

https://whatsapp.com/channel/0029Va9qWRI60eBg1dRfEa1I

[lunaamorris]

Maximizing Tax Deductions With Shopify Accounting

Running a Shopify store can lead to significant tax liabilities, but with careful accounting and proper tax planning, you can take advantage of various deductions to reduce what you owe. Shopify accounting provides the tools and structure you need to track eligible deductions throughout the year, ensuring that you pay only the minimum required by law. Here are key strategies to maximize tax deductions for your Shopify business.

1. Track Business Expenses Thoroughly

One of the most straightforward ways to reduce your tax bill is by deducting business expenses. Keep accurate records of all your business-related costs, including:

Inventory costs: Expenses related to purchasing products or materials for resale.

Shipping and delivery costs: Fees for shipping products to customers, including packaging and courier services.

Advertising and marketing: Costs for online ads, influencer collaborations, and promotions.

Software subscriptions: Costs for apps and tools used to run your Shopify store, including inventory management, accounting software, and email marketing services.

Using Shopify accounting software or third-party integration, you can easily categorize these expenses and ensure they’re accounted for at tax time.

2. Depreciation of Assets

If your Shopify business owns physical assets, such as equipment, computers, or office furniture, you may be able to deduct the depreciation of these items over time. Depreciation allows you to write off the cost of assets that lose value as they age, reducing your taxable income. Your Shopify accountant can help you determine the correct depreciation schedule for your assets based on their useful life.

3. Home Office Deduction

If you run your Shopify store from home, you may qualify for the home office deduction. This allows you to deduct a portion of your home expenses—such as rent, utilities, internet, and insurance—based on the square footage of your office space. Be sure to keep accurate records of your home office expenses to substantiate your claim.

4. Employee and Contractor Expenses

If you hire employees or contractors to help with your Shopify store, their wages are tax-deductible. This includes:

Salaries and wages: Payments to full-time and part-time employees.

Contractor fees: Payments to freelancers and independent contractors.

Employee benefits: Contributions to health insurance or retirement plans.

Ensure that you maintain detailed records of these payments and issue W-2s or 1099s to comply with tax laws.

5. Sales Tax Deductions

Sales tax collected from customers may be deductible in some circumstances, particularly if it’s a pass-through tax you’re not required to pay out of pocket. Be sure to differentiate between the sales tax you collect and any sales tax you pay on business purchases. A Shopify accountant can help ensure you’re not overpaying or underreporting in this area.

6. Professional Fees

Fees paid to accountants, lawyers, and consultants for services related to running your Shopify business are deductible. This includes bookkeeping services, tax preparation, business advice, and legal consultation. Keeping a record of these fees allows you to reduce taxable income.

7. Interest on Business Loans

If you have a business loan or credit card, the interest payments are typically tax-deductible. Be sure to track any loans used to fund your Shopify store’s operations or expansion. Deducting interest reduces your overall tax liability.

8. Consult a Shopify Accountant

Maximizing tax deductions can be complex, and tax laws change frequently. Working with a Shopify accountant who understands the unique needs of eCommerce businesses can help you identify all potential deductions and ensure compliance with tax regulations. They can also assist with quarterly tax estimates to avoid penalties and optimize your year-end filing.

Conclusion

Maximizing tax deductions is a crucial strategy for Shopify business owners to reduce their taxable income. By accurately tracking expenses, utilizing depreciation, and leveraging deductions for home office space, employee costs, and interest, you can lower your overall tax liability. Partnering with a Shopify accountant ensures that you’re making the most of available deductions while staying compliant with tax laws.

[studiohromi]

What I Did Last Week: January 13-17, 2025

Here we are with another edition of “What I Did Last Week,” where I share my day-to-day life as a self-employed creative person. Every weekday (and some weekends) I keep track of all the work I’ve done each day, as a way to keep me on track as a full-time working artist. Fellow creatives and freelancers, whether or not you choose to share it publicly, I urge you to join me in this weekly professional accountability exercise.

Weekly recap: This week was, put simply, not good. I spent most of it deeply feeling the sadness of the situation of a close friend. In my fragility I was given bad news about a large ongoing project, which I did not handle well. Of course in my client interactions I was nothing but professional, but given my emotional state I was a bit of a mess privately. We keep going and try again.

Client projects in progress/in review: 4

Client projects on deck: 6

Client projects near-completion/awaiting approval: 5

Client projects awaiting payment: 4

Monday January 13

Volunteer stuff.

Online shop update.

Applied for an upcoming art exhibition.

Worked on a commercial art & design client project.

Filed/paid estimated quarterly taxes.

Tuesday January 14

Filed/paid annual sales taxes.

Checked PO box.

Picked up consignment products from the GRPM Curiosity Shop.

Volunteer stuff.

Responded to a new commercial art & design client inquiry.

Wednesday January 15

Responded to a potential new medical illustration client inquiry.

Worked on a commercial art & design client project.

Prepared and sent an invoice for a terminated science design client project.

Worked on edits for a different science design client project and sent for review.

Sent a consignment inquiry to a local shop.

Thursday January 16

Met with one of my mentees for our semi-monthly check-in.

Social media/blog stuff.

Worked on final(?) edits for a science design client project and sent for review.

Worked on a commercial art & design client project.

Volunteer stuff.

Learning hour: Finished through chapter 3 of MedSpeak Illuminated.

Friday January 17

Responded to an inquiry from a potential new medical illustration client.

Met with one of my mentees for our semi-monthly check-in.

Open studio day: free sketching/doodling.