Want to know about independent contractor taxes and you don't know where to begin? Take a look at this article:
Tax Refund Options—The Quickest Ways to Get Your Money by Miriam Caldwell
It's kind of generalized knowledge, but at the same time, it gives very good advice, especially the last takeaway in the last couple of paragraphs.
This article is not for freelancers in particular, but when you work as a freelancer or independent contractor, you have to be prepared to adapt to the employment modality your employer will seek to impose on you. Yeah, working as a freelancer entails as much freedom for the old way of doing things as possible, and what the lifestyle demands are actually a personal ethos of not making any concessions and falling into the employment trap again.
It goes over these topics:
Refunds by direct deposit
Tax refund anticipation loan
Buy saving bonds with the refund
Paper check refunds
Remember that if you are a sole proprietor, you must prepare your tax reports yourself. This topic is not complex but it's not simple either.
When your work modality is freelancer, things get a little tricky at the time of creating your tax plan and preparing your tax reports when you work on your own.
The article is not intended for freelancers, but I think it can be of use to any other person new to taxes working as an independent contractor who hasn't organized her or his business yet, as to have figured out the process to implement regarding independent contractor taxes refunds.
Even if being a freelancer simplifies things a great deal, there are a few topics that have to be approached professionally, the taxes department being one of them.
To be true to the ideal of independence of freelancing is easy if you know where to look for gig calls, and how to discriminate the gig calls that are out of place.
It happened to me, that going to the gig portals for freelancers I did find a lot of misplaced job calls.
They were JOB calls, not gig calls. What I learned from them is that the employers parlay themselves into a work scene where they don't belong, with all kinds of sesquipedalian manipulations clumsily hidden inside their call's copy, with the objective of pulling down freelancers from a laid-back, powerful position of work liberty towards mutilated job positions that masquerade as a gig, when in fact they're just the same old oppressive master-servant relationship.
Independent Contractor Taxes Takeaways
On why this article and other masterfully written like this one are useful for freelancers, even if said articles don't pertain to freelancers directly.
Of course that you can always delegate this part of your gig to a professional accountant and have all tax-filing and tax return chores done in an expert, optimized way; still, I think that's not agreeable in a few situations.
A few of the personal cases that come to mind when the services of a professional are undesirable could be:
Your monthly, quarterly, or even yearly volume of transactions is still manageable
You're a self-made person open to learning new things, and you think being a freelancer is being as autonomous as possible
You're getting into the industry with zero, or next to zero, budget and independent contractor taxes are still not an issue
© Martin Wensley, 2019-2021 — Independent Contractor Taxes and Tax Refunds