Freelancing has its perks, but tax season is always nerve-wracking.
I’ve heard plenty of cautionary tales about audits and losing out on deductions. Is there a straightforward principle that can help keep freelancers on the right side of the taxman?
Keep a detailed record from the start. Document every receipt, drive, and expense no matter how minor. A basic spreadsheet works fine. I snap pictures of receipts as soon as I get them.
Pay taxes quarterly instead of putting it off until April. Set aside 25 to 30 percent of each payment in a separate account. The IRS prefers no surprises, and you certainly don’t need penalty fees later.