Tax Time Tips for Freelancers

Posted: March 05, 2019

[caption id="" align="alignright" width="458"] Image: The Write Life[/caption] Tax season is generally no fun for anyone, but can be particularly stressful for freelancers. Whether you're new to the freelance game or a long-time pro, freelancing has specific tax challenges. Along with changes to tax codes, you have to sort out deductions and self-employment taxes. It can be mind boggling, but it doesn't have to be - there are always tax tips that can help you strategize and dread April 15 a little less. Jamie Cattanach, writer and contributor to The Write Life, shares financial tips for freelance writers.

It’s Almost Tax Time: 5 Financial Tips for Freelance Writers

It’s almost cruel: as soon as the holidays are over, it’s time to start thinking about first quarter financials. And while winter may be the most wonderful time of the year (… maybe), it’s also one of the most busy and expensive. Tax time is stressful for everyone, but especially for freelance writers, whose financial situations can be super-complicated. Have you been keeping up with your quarterlies? What about self-employment tax? Maybe you’ve got a “normal job” as a side gig — which means you’ve got W-2s to worry about, too. And how’s that whole “saving for retirement” thing going? Fret not, frantic freelancer! Because while, yes, tax time will require some additional hustle, getting your ducks in a row at the beginning of the year can set you up for smooth sailing thereafter. Here are five savvy financial steps to take before the cruellest month arrives.

1. Maximize IRA contributions

You might not have an employer-sponsored 401(k), but you are saving for retirement, right? Whether you choose a Roth or traditional account, an IRA is a great way to build that nest egg. But you’ve gotta put money into it if you want to take money out! Given that IRAs carry relatively low contribution limits (up to $5,500 for 2018), meeting the maximum is a relatively achievable goal for many of us — and it’s well worth scrimping and saving for. The magic of compound interest can turn even a modest savings into a sizable retirement fund, provided you give it time to grow. Read the entire article, It’s Almost Tax Time: 5 Financial Tips for Freelance Writers, on The Write Life.