When Exactly Do Freelancers

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Need to Pay Taxes? While you may be used to paying one lump sum on April 15th every year, freelancers are expected to take a different course. Any freelancers expecting to owe the IRS $1,000 or more for the year in taxes are to calculate and pay estimated quarterly income tax. In other words, you need to estimate your earnings for the year, then separate the tax burden on that amount into four equal parts. It’s essential that you calculate these four payments as accurately as you possibly can so as to avoid paying any remaining balance with your annual filing.

Also, if you pay too little in estimated taxes, the IRS may charge you an additional fee. On the other end of this process, if you pay more than you end up owing, the difference will be refunded upon filing your annual tax return. To help you calculate these Bahrain WhatsApp Number estimated quarterly taxes, look for the IRS Form 1040-ES and follow the instructions. Your first estimated quarterly tax is due on April 15th, at the same time as your annual filing for the previous year. The following three are due on June 15th, September 15th, and January 15th.



The Forms You Need for Freelance Taxes Whether you are new to the freelancing work style or consider yourself a pro already, understanding what requirements are in place is a good start. Specific forms are required when it comes to filing freelance taxes, and these include: Form 1040 — U.S. Individual Income Tax Return Form 1040, Schedule C – Profit or Loss from Business: Schedule C is where you, as a freelancer, will report all of your expenses and income. You’ll need to enter information found on 1099s from clients and from your own accounting records.