As leaders in providing tax services for 15 years we know that for self-employed people, one of the biggest pains of life is to handle their taxes, saving up for them all year around and filing them at the year end all on their own. For self-employed people, keeping a proper record of their income and then saving the right amount of money to meet their tax requirements can be quite tricky. Here are some tips to provide tax problems help to freelancers that can help them organize their taxes in a much better manner, right from the start:
Tax Help Tip 1 – Get the Information
The very first thing you should do is to get the 1040 ES forms. You can easily download these forms from the online site of Internal Revenue Service. Second, you should visit the site of your state’s tax authority. From both these sites, you can get information about the state and federal tax requirements that you would be required to fulfill along with all other tax problems help you would need.
Tax Help Tip 2 – Calculate Your Income
Once you are aware of the federal and state requirements with regard to the taxes, the next thing to do is to estimate your income for the coming year. While it may seem difficult for freelancers to predict how much they will be earning in the future, they can make a rough estimate keeping in mind the state of their business. The easiest way income can be estimated is by using the income records of the past few years, calculating the average income and growth rate experienced over the past few years by an individual.
Tax Help Tip 3 – Determine the Tax
Once your income is determined, you have to estimate the amount of tax applicable to this income. For security reasons, it is preferable to set aside 30 or 40 percent of your income for tax payments since the federal and state taxes usually add up to these amounts. Saving money can prove to be a big tax problems help at the time of tax filing.
Tax Help Tip 4 – Calculate Deductions
The next thing you need to do is to learn about the deductions you are applicable for. A lot of expenses that are incurred by self-employed people for their business are tax deductible, giving them further tax problems help.. This includes utility bills and furniture expenses for your home office, meals, and other different technical and usual items.
However, keeping a well-maintained record of all these expenses is very crucial if you want to get these deductions. The best way to do that is to get separate things for your business, including computers, phones and credit cards etc. This way, keeping track of the expenses that are eligible for tax deductions can get quite simple.
Tax Help Tip 5 – Have a Tax Saving Account
To organize the process of managing your taxes and get tax problems help , one of the most important things you should do is to set up a separate saving account for the money you want to keep apart for the tax payments. You can simply deposit all the money you have set aside for the payment of taxes to these accounts and not use it for your regular transactions. This way, you can ensure that the money is saved up at a secure place without the worry of spending it accidently.
If you need more information about our accounting and tax services, please contact us at 407-502-2400. Freedomtax Accounting’s staff has been providing honest accounting services and tax services for 15 years. Our Orlando accounting firm has its main offices in Kissimmee, FL. We serve the Central Florida market to areas like Orlando, South Orlando, Kissimmee, St. Cloud, Poinciana, and Hunters Creek, FL. Our tax accountants and IRS enrolled agents (irs ea) specialize in corporate accounting and bookkeeping, tax services, tax preparation, back taxes help, tax debt relief, tax resolution, tax planning, itin numbers, incorporations, and non profit 501c3 tax exempt status applications.