#TaxFreelancers

[taxfreelancerus]

Independent consultants have the advantage of writing your own checks. We all have our own struggles when it comes to raising our rates. We worry about whether or not our rates will remain competitive and if we will lose clients. Sometimes worry can get the better of us. We take on more work, pull all-nighters, or sacrifice a weekend away with our families to make it happen. While these are difficult decisions to make, there are other ways that you can increase your billable hours without spending extra time at work.

[taxfreelancerus]

Planning For Taxes, Be Prepared For Tax Time

Taxes aren't always bad, despite their association with death. Some people even get a lot of money back during tax season. There are some ways to reduce the impact of April's tax season. Many times, people find ways to offset taxes that are both financially advantageous and beneficial. Although tax planning can be cumbersome, there are some basic ways to save money before you start sifting through old receipts.

Take a bite out of tax

1. Tax Planning For Freelancers Your Adjusted Gross Income (AGI) The American Dream often reflects dreams of endless wealth and capital gains. However, we all know that the more you make, the more the government takes away. There are many ways to climb up the economic ladder, and to keep your hard-earned cash instead of throwing it away. What are some of the ways you can do this? It's very simple: a large portion of your income can be invested in a retirement plan (a 401K would be a good option). You can also deduct money you pay towards education or an IRA fund. Remember that all deductible contributions must be itemized on Form 1040. This will allow you to save tons of time in April.

2. Maximize tax deductions - Taxable items like interest on mortgage payments, charitable contributions, medical expenses and dependents can all reduce your taxable income. If a state income tax deduction for the state is unavailable or less than the state, you can deduct state sales taxes. Tax deductible would be all investment-related expenses as well as all state taxes.

3. Take advantage of tax credits What are tax credits? Tax credits can be a great way to lower taxes. Tax credits can be used to lower taxes for things like adopting children, paying college tuition, and investing in retirement plans. EIC (Earned Income Credit), retirements, IRA, education in college and above, among others are some examples of tax credit items.

4. Get a tax planning. It is recommended to have a planner used every 2 years. This will allow one to learn from the tax returns how they are calculated. A tax planner can also provide invaluable advice on what type of investments should be made in order to minimize taxes and still be within the legal guidelines.

5. Continued research and updating is required on taxation to understand the latest rules and how to make the most of exemptions. You can use the Internet to gather all the information you need in order to calculate the exact amount that you owe the Government. There are many other resources available, including tax software programs that automatically calculate your taxes, local libraries with hundreds of tax records, workshops and freelancing agents, as well as tax software programs.