Freelance Writing Tip: 2/16/2008
Wouldn’t it be nice if we could keep all of the money that we earn from freelance writing? While this is a nice dream, it will never happen. Taxes are a way of life, and you need to come to grips with this. Believe it or not, many people think that they can hide their freelance writing income from the IRS. This is not something that you want to try; unless you want to get into a lot of trouble that is.
There are two types of freelance writing careers: full-time or part-time. The way that you treat your writing will depend on how you proceed with paying taxes. Obviously, both ways have their own set of complications. For this reason, I suggest that you see a tax professional when it is time to file your year end return. Additionally, they can also help you set up quarterly tax payments both on the federal and state level. Remember, there is no employer to withhold taxes, so you are responsible for sending in the appropriate payment four times per year.
As you may know from experience, it is always nice to get a tax rebate as opposed to owing more money to the IRS. Of course, not everybody is this lucky. Even if you stay on top of your quarterly payments, you may not do enough to garner a rebate. Luckily, as you get used to your freelance writing income, you will be able to make the necessary adjustments.
Dealing with taxes month in and month out is one of the biggest drawbacks of being self-employed. While this may not bother some people, I see it as a drain on my time. Although it can be annoying, I know that it is something I must do if I want to work for myself. After all, being in charge of my own taxes is much better than working for somebody else!
