ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

How to prepare your Taxes as a freelance writer

Updated on February 27, 2012

Preparing your Taxes as a freelance writer.

What do you need to know about filing for taxes for the first time.

If you are a freelance writer, and you are planning to file for taxes for the first time this year, congratulations! This means, that somewhere along the way, you've made money from your work.

If you have made more than $400 during the entire year as a freelancer, you need to file for taxes. Make sure you have collected all of your payments, business transactions, and paperwork that you have received from your employers, or from the places where you write, to make this part of the business a bit easier.

Filing for taxes for freelance writers is actually very different since you are self-employed. You will need to gather all of your 1099's or schedule C, 1040EZ and Sch SE if you didn't receive any 1099 through out the year.

Once you have done this, the process can be a bit easier, or less frustrating if you are good at math, and if you can recall all of the things that has helped you run, improve or manage your business through out the year.

If you are filing for taxes for the very first time, then you pay attention! This process can be intimidating at first, but its easy if you have everything that you need.

Before you start doing anything online that has to do with your taxes, make sure you visit the IRS homepage to get the newest forms, and to see if there is any thing new that you need to be informed of. IRS.GOV has everything that you need if you have questions, or if you did not receive any paperwork from your employers. It is important that you gather all of the basic paperwork BEFORE you start filing your taxes. This can save you from being audited later on.

When you are preparing all of your paperwork, and looking over your net worth, make sure you list any and ALL of the people that have paid you, and ALL of the websites where you have earned money. It really does not matter if you earned money, but haven't gotten paid yet, because you can still put it in your taxes. This will also help you with the expenses later on.

What you need to file.

As I've explained earlier, a couple of the forms used the most by freelancers are the Schedule C, Sch EZ and 1040 or Schedule SE to figure out your self-employment tax, which includes your social security and medicare taxes.

These are the most basic and useful pieces of paper that you need if you are a freelancer, and you've made more than $400 last year.

In theory, filing for taxes is relatively simple. Since all you are doing is:

Adding your income, deducting what you use, and seeing how much you are getting back. However, as freelancers, you know that not everything we use can be deducted (even though it should be) and all of the things we can deduct, it can be hard to figure out just how much we use.

So, lets make deductions easier.

What can you deduct?

Almost everything that you use to run your freelance business, you can deduct. So, what do you use?

  • Your Computer
  • Internet
  • Postage stamps
  • paper
  • desk (if you bought one)
  • Electricity
  • Gas (if you drive to meet a client)
  • Books, notebooks and other expenses.

There are other deductions that you can look through, however, these are the most common things to look for. If you have more questions about what you think you can deduct, you can call the IRS to ask for help, OR you can also get your taxes checked out for free through any online company. The most popular companies to use today include: TurboTax, H&R Block, and the IRS webpage.

Preparing for the following year.

If you are done preparing your taxes, then give yourself a pat on the back! You've managed to complete a task, that many freelancers are still putting off! Now, is the time to start preparing for next year. Keep an accurate track of all of your paperwork, and make sure you have your taxes for this year put away neatly to help you prepare your taxes NEXT year. This is the part that too many freelancers do not think about, and it is CRUCIAL when it comes to doing taxes through out the year!

Save as much money as you can through out the year, to make sure that you can pay off any taxes later on. Also, if you are not paying off taxes in your paycheck through out the year, then you must file a 1040 every quarter to avoid any problems with the IRS and unpaid fees. Trust me, these can add up QUICK!


Comments

    0 of 8192 characters used
    Post Comment

    • quildon profile image

      Angela Joseph 

      6 years ago from Florida

      Very useful information. Wish I could bookmark it but I didn't see the link.

    • alexadry profile image

      Adrienne Janet Farricelli 

      6 years ago from USA

      Great hub at the right time, thank you!

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)