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What Every Freelancer Needs to Know about Taxes

With the ongoing pandemic, social distancing and remote work are becoming the usual standard. There are now over 57 million freelancers in the USu2014that's a considerable increase in comparison to previous years. In 2019, the gig economy's gross earning was estimated to be a sum of approximately $1 trillion. Since freelancing offers flexibility to both the employer and the employee, it is growing to be the new normal.

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What Every Freelancer Needs to Know about Taxes

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  1. Phone: (888) 247-6829 What Every Freelancer Needs to Know about Taxes With the ongoing pandemic, social distancing and remote work are becoming the usual standard. There are now over 57 million freelancers in the US—that's a considerable increase in comparison to previous years. In 2019, the gig economy's gross earning was estimated to be a sum of approximately $1 trillion. Since freelancing offers flexibility to both the employer and the employee, it is growing to be the new normal. Even if you work as a freelancer, filing taxes is a requirement for you, no different than for anyone else. You need to know about Tax Preparation for Freelancersbecause gig workers enjoy several distinct advantages over regular employees. What forms do you need to file? Apart from the W-2 Form that you may receive as a traditional employee, you can also receive a 1099-NEC Form from every client that paid you $600 or more during the year. This 1099-NEC Form triggers a Schedule C filing requirement, the latter which goes attached to your tax return. When should you pay freelancer taxes? If you are a freelancer who owes $1,000 or more in taxes, you must pay estimated taxes quarterly. This way, your “employer(s)” does not have to withhold from your freelance income throughout the year. Another IRS form, Form 1040-ES, will help you report how much tax you owe each quarter. If you underpay your quarterly taxes, then you need to pay your remaining balance when you file your annual tax return by April 15, along with an underpayment penalty. https://agroaccounting.com

  2. Phone: (888) 247-6829 We know that preparing your own taxes can be overwhelming, but with Agro Accounting CPA’s quick and simple solutions in accounting and tax preparation, you don't have to worry about them anymore! Agro Accounting CPA Phone:(888) 247-6829 Email:basil@agroaccounting.com Address:42 West Street, Brooklyn, New York 11222 Facebook:https://www.facebook.com/AgroAccountingforartists Instagram:https://www.instagram.com/agroartaccounting Twitter:https://twitter.com/art_accounting https://agroaccounting.com

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