Important Tax Reasons to Start Freelancing as a Full-Time Business

List: Posted: 04/22/11

Freelancing allows you much more freedom when it comes to preparing and paying your taxes. Self-employed individuals have the benefit of having complete control over their taxes throughout the year. It is best to pay substantial amounts of your tax payments incrementally throughout the year. SECA or Self-Employment Contributions Act tax is required to be paid quarterly.

One of the best ways to ensure that all tax payments are completed in a timely manner is to join the EFTPS or the Electronic Federal Tax Payment System. This will allow you to pay your taxes online electronically and have them deducted straight from your bank account. In addition, you will want to calculate your gross income. If this number is positive, then you can make some deductions based on business expenses. If this number is a loss, you may want to consult with a tax analyst to ensure that all forms are filled out correctly.

A good strategy for freelancing professionals is to try to steadily reduce the amount of taxable income. You will also want to ensure that you take advantage of any tax credits that are offered.

 

One step to filing taxes as a sole proprietor is to make sure that you organize your expenses and income so that when it is time to file your taxes, you have all the information you need at your disposal. Business expenses like home office supplies, rent and utilities, computers, websites, software programs, or other expenditures can be deducted from your taxable income. If you need more help with filing your taxes, visit the IRS website or contact a tax consultant.

 

Tax Return Preparation, State & Income Taxes

    We look at your life through tax - and find ways to help. H&R Block is a global consumer tax services provider that prepares one in every seven U.S. tax returns. H&R Block is global leader in tax preparation services - we've prepared more than 700 million tax returns through retail locations and at-home, digital solutions since 1955. And with approximately 12,000 tax offices in all 50 states, as well as U.S. territories, military bases and abroad, we're always available to help you file your taxes. Find your local Ashburn tax office and schedule an appointment today.

    • 44110 Ashburn Shopping Plz Unit 198 Ste 198
    • Ashburn, VA 20147
    • (703) 723-9530

      We look at your life through tax - and find ways to help. H&R Block is a global consumer tax services provider that prepares one in every seven U.S. tax returns. H&R Block is global leader in tax preparation services - we've prepared more than 700 million tax returns through retail locations and at-home, digital solutions since 1955. And with approximately 12,000 tax offices in all 50 states, as well as U.S. territories, military bases and abroad, we're always available to help you file your taxes. Find your local Broadlands tax office and schedule an appointment today.

      • 43150 Broadlands Ctr Ste 122 Ste 122
      • Broadlands, VA 20148
      • (571) 291-2216
      • 44081 Pipeline Plz Ste 215
      • ASHBURN, VA 20147
      • (703) 723-6388

        Blue Ridge Tax, Inc. is a licensed CPA firm in Virginia. The firm provide tax services to individuals and businesses. IRS audit representation service.

        • 42779 Chatelain Cir
        • Ashburn, VA 20148
        • (571) 201-5268

        The material in this article is for informational purposes only. The views expressed in this article are those of the author and do not necessarily reflect the views or opinions of Local.com. See Additional Information

        More about local.com Features

        Socialize With Us
        Business Top Searches
        Recently Added Coupons

        Copyright 2017 Local.com Ltd - US Patent 7,231,405 - Privacy Policy - Terms of Service
        Advertise with Us - Claim Your Business Listing - Contact Us - FAQ - Site Map - Some data provided by Acxiom.