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The April 18 tax deadline is quickly approaching. If you haven’t filed your taxes yet and are starting to feel the pressure, you’re not alone. According to a recent IPX 1031 survey, one-third of Americans say they wait until the last minute to file their taxes. But if tax season snuck up on you this year, there’s no need to panic — you can always request a tax extension. Let’s look at how to file an extension for taxes in 2023 and the implications of doing so. What is a tax extension?If you need more time to file your individual federal income tax return, you can request an automatic extension from the IRS using Form 4868. The filing deadline to request a tax extension is the same as filing your return, April 18, 2022. A tax extension will give you an additional six months to file your taxes; this year’s tax extension due date is Oct. 17, 2022. When is Tax Day in 2023?The deadline to file taxes or request an extension in 2023 is April 18, 2023. When is the deadline to file a federal income tax extension in 2023?You must file a tax extension by April 18, 2023. Note that this does not affect the date tax payments are due, just the filing deadline. Can I still file a tax extension for 2022?If you need more time to complete your 2022 tax return, you have until April 18, 2023, to file an extension. With an extension, you have until Oct. 16, 2023, to file your return. Can you file a tax extension after Oct. 15?No. With an extension, you must file your 2022 taxes by the October deadline. The extension deadline is typically Oct. 15 unless that date falls on a weekend or holiday. In 2023, Oct. 15 falls on a Sunday, so the extension deadline this year is Monday, Oct. 16. What is the easiest way to file a tax extension?You can electronically request an extension by filing Form 4868 with TaxAct®. We can help you estimate your tax liability and file an extension for your federal tax return. If needed, we can also help you file any state return extensions. How much does it cost to file an extension on taxes?Filing an extension is free. You just need to submit Form 4868 by April 18, 2023. Will filing a tax extension give me an extension of time to pay my tax bill?No, a tax extension only gives you more time to file your return; it doesn’t give you extra time to pay any taxes you owe. To avoid late payment penalties, you must pay your tax bill by the Tax Day deadline. When you request a tax extension with Form 4868, you can estimate and pay your tax liability for the year. To help estimate your potential tax liability, try to complete your return as much as possible, estimating wherever necessary. What are the pros and cons of filing a tax extension?Filing for an extension is an excellent option for many taxpayers who feel stressed about tax season or have other commitments and need more time. Requesting an extension from the IRS is also easy, and you don’t need to give a compelling reason why you need more time to file. So long as you submit your extension request form on time and correctly, approval is typically automatic, and you’re granted an extension. The downside of filing a tax extension is that it only gives you more time to file, not more time to pay. As discussed in the last section, you’ll still need to estimate and pay any taxes you might owe by the tax filing deadline (April 18 this year). Another trap many extension filers fall into is waiting too long to file. Though an extension gives you an extra six months to complete your income tax return, it’s always best to file it as soon as possible. The longer you wait, the more likely you will forget what happened during the previous tax year. When should I file a tax extension?The IRS doesn’t require a reason for requesting a tax extension and usually grants them without issue. Some common reasons for filing an extension request are:
No matter your reason, if you need more time, ask for it! When shouldn’t I file a tax extension?Since filing for an extension only gives you more time to file but not more time to pay your taxes, you shouldn’t file an extension if you cannot pay your tax bill. An extension won’t be helpful if you owe money you can’t pay. Instead, the IRS provides payment options and will work with you to establish a tax payment plan agreement to break up your tax bill into smaller payments over time. If you have no tax due this year and you’re owed a refund instead, you have up to three years to file a return and claim your refund money. There is no penalty for filing a tax return late when you have no balance due, but if you’re owed a refund, make sure you file so you don’t miss out on that extra cash. We said it before, but we’ll say it again — tax filing doesn’t get any easier as time goes on. Wait too long, and you may risk forgetting essential details about the tax year if it’s not fresh in your mind. This could mean missing out on potential deductions or tax credits. How do I file a tax extension?To request a filing extension on your personal taxes, you will need to use IRS Form 4868. TaxAct® allows you to complete Form 4868 for your federal tax return and file any necessary state extension forms when you e-file. You can also print a paper copy and send it to the IRS via snail mail. Your extension request form requires you to provide simple information about yourself, such as your name, Social Security number, and address. If any of that information has changed since the last time you filed, notify the appropriate organizations before applying for your extension. For instance, you should notify the Social Security Administration if you change your name. If you moved recently, you should inform the IRS with Form 8822. How do I know how much tax to pay with my extension?To finish Form 4868, you need to estimate how much tax you owe. The form helps you calculate this by estimating your total tax liability for the year and subtracting any payments you’ve already made. One problem many taxpayers run into is not having all their tax information yet. If you’re still waiting on important tax documents, try to complete your return as best you can. Rather than leaving something out, try to use estimates for any numbers you don’t have yet. If you are using TaxAct, click Mark as Estimate for any information you need to double-check before officially filing your return. You can also use our separate to help estimate your amount due. When in doubt, it’s better to overpay than underpay. If you overestimated your tax bill and paid too much, you will receive a tax refund for the overpayment. However, you could be responsible for paying interest and penalties if you underpay. The good news is that the penalty for paying late when you’ve requested an extension is significantly less than if you did not receive an extension. What should I do after filing a federal extension?The six-month extension period is often more time than most of us need. Here are a few steps you can follow to help keep your tax return on track:
What about state income tax extensions?If you live in a state that charges income tax, you’ll need to file an extension for your state taxes and your federal taxes. In most cases, a state extension gives you more time to file, not more time to pay. Some states will grant you an automatic six-month extension if you’ve filed for a federal tax extension, but not always. When you file with TaxAct, we make it easy for you. We walk you through completing Form 4868 for your federal return and provide you with any necessary state extension forms. Can I file a tax extension for my business?Yes! Sole proprietors and single-member LLCs can use the same Form 4868 for individual returns. Business owners of partnerships, multi-member LLCs, and corporations also have the option to file a tax extension for their business, though some things work a little differently. For instance, the deadline for partnerships and S corporations to request an extension was March 15. You can read more about this topic in our guide to business tax extensions. All TaxAct offers, products and services are subject to applicable terms and conditions.This article is for informational purposes only and not legal or financial advice.via Freelancers Union Blog https://blog.freelancersunion.org/2023/03/31/the-ultimate-guide-to-filing-a-personal-tax-extension-in-2023/
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It’s safe to say that working as a freelancer isn’t always rainbows and butterflies. While the career path offers endless possibilities, there are also numerous challenges that come with the territory. If we were all honest with ourselves, we’d probably admit it’s not easy working alone to overcome financial challenges and constantly finding creative ways to grow our clientele – all while delivering amazing products and services. The reality is that sometimes we need a bit (or a lot) of support and guidance to reach our ultimate goals, but we don’t even realize it until the opportunity is presented to us. Enter Noumena’s Rise Training Program that begins on May 15, 2023. It’s a rare opportunity to gain the professional and financial support needed to take your freelance business to the next level. Who is Noumena? Noumena gives freelancers the power to reach their potential, grow their businesses, and finance their dreams. Its business tools, financial options, network of experts, and global community support freelancers as they work, learn, and finance their freelance life. What is The Rise Program? Through the Rise Program, Noumena is bringing together a powerful and passionate team of instructors and experts dedicated to providing their knowledge and experience for an entire year of training and mentorship. Their commitment is to help candidates develop clear and concise strategies for growing their businesses to new heights. Freelancers who apply and are accepted into the program will gain access to proven methodologies and tools for scaling their businesses, boosting revenue, managing finances and taxes, obtaining funding, reducing risk, and lots more. They’ll also gain access to funding. #1 Rise Helps Freelancers Build from the Ground Up As a freelancer, trying to succeed on your own isn’t easy, and it can be confusing where to focus time and energy. Plus, it’s easy to get caught up in making the same mistakes time and time again. Rise offers a curriculum that will help you make sense of the steps, tools, and strategies you need to effectively scale your business (and have fun doing it). Our instructors and mentors are freelancers and entrepreneurs themselves who understand what it’s like to start from the very beginning. They will take the time to understand what you’ve built so far (or what you’d like to build) and then help you accomplish things like:
If this sounds exciting, you may be wondering if there are requirements for applying. Luckily, it’s pretty open. You must be 18 or older and be dedicated to building your business. It’s open to full-time freelancers and those with full-time jobs with side hustles. It’s ideal for those who have dreams of leveraging their talents to create a thriving business. #2 – One-on-One Mentorship There are few better ways to learn than having one-on-one time with a professional in your field. In addition to Rise’s intensive curriculum, each student gets a personal mentor to work with for an entire year. A Rise mentor is there to help you apply the strategies you learn throughout the program. Plus, they are there to help you gain confidence, improve your business posture, troubleshoot challenges, and more. Of course, no one promises that your road to success won’t have bumps and challenges – but no matter what comes, you’ll have your mentor throughout the year to guide you to greater levels of success. #4 – Access Up to $30k in Funding The financial side of a freelance business can be rough, especially in the beginning as you’re trying to establish yourself. That is why Noumena’s Rise program is offering its cohort of students up to $30k in funding with flexible terms. The Rise Program costs $6,000. If you’re accepted, Noumena will offer you three rounds of funding (up to $10,000 for each round). A portion of your tuition will come out of the funding and the rest is yours to use as you’d like. You can pay off debts, buy supplies for your business, etc. – whatever it takes to get you off the ground. #4 – A Cohort of Freelancers for Collaboration If you take part in Rise, not only will you receive everything mentioned above, but you’ll also be learning with a cohort of freelancers with a shared purpose that provides the type of extra motivation, accountability, and lifelong connections where everyone benefits.
You will be inspired to collaborate with your cohort, share your ideas and concepts, and receive valuable feedback that will help you on your journey.
You can learn all about Rise on our website, consider its benefits, and even get in contact with the Rise team. The program kicks off on May 15, 2023, so remember time is of the essence. via Freelancers Union Blog https://blog.freelancersunion.org/2023/03/30/4-reasons-freelancers-should-consider-the-rise-training-and-mentorship-program/
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Did you make contributions to charitable organizations in the current or past tax year of more than $5,000 using digital assets and want to use them as a tax deduction? The most recently change to the tax code related to cryptocurrency address this scenario. The IRS considers digital assets to be assets that do not exist in physical form and include "convertible virtual currency" and "cryptocurrency”, and they are treated as property under general U.S. tax principles. Here is a brief synopsis on how you need to approach deducting large charitable contributions made with digital currency. You may also need to consult a qualified tax professional for additional guidance specific to your situation: To deduct charitable contributions made with digital assets you must meet appraisal requirements. In addition to the traditional IRS requirements for substantiating charitable deductions of more than $5,000, a qualified appraisal is also required to value the cryptocurrency. If you do not have a qualified appraisal, no contribution deduction is allowed. The taxpayer takeaway on digital asset charitable contributions: If you are considering or have made charitable contributions of cryptocurrency in excess of $5,000, be sure you can provide documentation for the qualified appraisal requirements beyond simply what is reported by a cryptocurrency exchange. Specifically, the charitable contributions qualification requirements stated by the IRS are: 1) An agreement between the donor and the recipient relating to the use of the contributed property. 2) An appraisal document prepared expressly for income tax purposes stating the method of valuation and the basis for the valuation. 3) The appraiser must have an appraisal designation from a recognized appraiser organization and must regularly perform appraisals for which they receive compensation. It is not clear at this time what type of entity or individual credential would qualify as an appraiser in this context. Another critical point: There is a reasonable cause exception to the qualified appraisal requirement, however, the IRS views this as a contingency to provide relief to taxpayers who truly attempted to comply with the appraisal requirement but were unsuccessful. It is not intended to be a “work around.” Taxpayers cannot opt-out of obtaining a qualified appraisal. Charitable contributions can be an important tax-saving strategy for self-employed business owners, however, the additional layer of verification and appraisal should also be carefully considered if you plan to start or continue using digital assets in this manner. If you have questions, check in with our tax professionals who can help you understand the virtual currency tax regulations and take care of any required tax compliance. via Freelancers Union Blog https://blog.freelancersunion.org/2023/03/30/irs-provides-updated-cryptocurrency-guidance-for-charitable-deductions/
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But, if there is one drawback it is that it can be a sedentary lifestyle which can increase health risks such as cancer, heart disease, and disrupted sleep. With fewer people to interact with (other than the cat) it can be all too easy to sit at your desk all day, barely moving from it apart from trips to make coffee or tea (and the biscuit tin!). Companies are duty-bound to look after the health and well-being of remote workers but as a freelancer the only person looking out for your welfare is you. That’s why we have put together this guide to help you stay active and mobile while working from home. Going for a walk or run
As we mentioned, you are the master of your own destiny as a freelancer which basically means if you want to go for a run at 11 in the morning then nothing but a tight deadline is stopping you. Walking is a great activity that helps reduce stress and anxiety which can be common worries for freelancers as they juggle managing their clients, workload, and life. The mood-boosting effects of walking don’t end there and thanks to the increased levels of oxygen and blood flow to your brain, your body releases endorphins and serotonin – known as the feel-good hormones. Running can have a similar effect to walking except it is obviously a more cardiovascular activity which can help you burn more calories while building muscle and strength for a more overall workout. You can enjoy a ‘runner’s high’ when you get home, which is similar to the positive feelings you get when walking which can help unlock your creativity as you sit back at your desk. Exercising with low-impact activities
If you would rather save going outside for times when you aren’t working you can still enjoy being active during the day through low-impact activities. Whether it be yoga, Pilates, or meditation activities, you can still get your body and mind focused on something else for a short time. Yoga and Pilates allow you to relax your body while strengthening your muscles and improving flexibility while meditation activities are a great way to give your mind a break from the buzz of work. Spending 20 minutes doing low-impact activities such as these helps to stimulate your creativity, find new perspectives, and reduce self-doubt. If you find yourself having a mental block, low-impact activities can help you make a breakthrough while also improving your physical well-being. Creating an exercise hub at home
Many freelancers use a room in their home as their office or study which allows them to focus during the day. Consider sharing your office space with some workout equipment to help you enjoy an exercise station that’s close by. You may even wish to fully transform a room in your house that is dedicated to your physical well-being. Whether it’s a weightlifting station, exercise bike, or something like a golf simulator to keep you moving and improving, having a dedicated sports zone with easy access makes fitting in some exercise between projects quick and painless. Engaging in online workouts and classes
If left to our own devices there is a good chance that we would simply avoid exercise as much as possible. But a great way to boost your physical activity while working from home is to book online workouts and classes. With a sense of commitment, we are more likely to do exercise than in a situation where the only person we are letting down is ourselves. Many of us start to work out because we feel motivated to set a fitness goal but that motivation doesn’t always stick around for the long haul. There will come a point when you would rather carry on working than jump into your own home workout. Thankfully, with some accountability by signing up for online workouts, or classes at your gym, you feel like you would be letting someone down if you don’t attend. This is even more effective for keeping you on track by arranging to attend a class with a friend, that way you’re not just letting yourself or your classmates down but also your friend. Some fitness accountability apps to keep you on track include:
Fitting breaks around your moving goals
With the freedom of setting your own schedule, it’s useful to set your breaks according to your moving goals. If you want to walk more, consider taking a longer morning break and stretching your legs to enjoy the morning air and daylight no matter the time of year. The great thing about exercise is that you can fit in a session whether you have an hour spare or just 10 minutes. Mentally preparing yourself to be active on a break can help you set a time and stick to your plan. Book time with a personal trainer
There is no greater accountability than a personal trainer to make sure you get the most out of a workout. They are not cheap but with the outlay, you get their technical expertise and the motivational boost to maximize your exercise goals. The great thing about personal trainers is that they have flexible schedules that work around your day, perfect for a freelancer who can also be flexible. While many personal trainers find themselves in high demand before and after typical working patterns, during the day they commonly have more availability. If your trainer is helping you to work out at a public gym, there is the added benefit of working out at more quiet times – this means you won’t have to neglect part of your workout because you can’t use a piece of equipment. Your personal trainer will not only be ready and waiting to get started when you meet for your appointment but they will tailor your workout to meet your specific fitness goal. The first step in improving your activity while at home is recognizing a lack of movement and then adapting your schedule to incorporate some light or heavy exercise to suit your needs. via Freelancers Union Blog https://blog.freelancersunion.org/2023/03/29/stopping-the-sedentary-slump-how-freelancers-can-stay-active-and-wfh/
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We’re lucky to live in a time when we have seamless access to so many fantastic tools and software programs for marketing. But the downside of having so many choices is the difficulty of picking the right ones to work with. This is the case with email automation software as there are so many options out there the task of finding the right one can take a while. Email marketing is a very useful tool in the hands of marketing teams and freelancers. Automated tools have made developing and implementing email marketing campaigns a breeze. So whether you’re a marketing specialist looking to expand the reach of your brand or a freelancer working with a vast number of clients each of whom demands a unique approach to their email marketing campaigns, automated software can take the edge of this challenging task. But if you’re overwhelmed with the number of automated email marketing programs out there and can’t come to a decision, here are five of the best email automation platforms in 2023 and what makes them unique. MailchimpYou’ve likely heard of Mailchimp and if you’re subscribed to any website, there’s a good chance that you’ve received automated emails sent using this software. Over 1.3 million companies use Mailchimp as it holds the title of the most popular email marketing platform. Mailchimp provides great all-around email marketing software that helps with lead generation and broadcasting. On top of that, Mailchimp provides tons of other great tools for eCommerce marketing and even web design. Pros
OmnisendAutomated email systems are very effective marketing tools for eCommerce platforms. Omnisend’s email automation software has a greater focus on eCommerce. It offers automation presets tuned for small to medium eCommerce businesses. Automated emails can be sent to prospective clients about new products, sales, and order updates to keep clients in the loop, as well as attract new customers. After integrating Omnisend into your eCommerce platform and adjusting a few basic settings and preferences, the automated email system will be ready to go. Pros
Benchmark EmailWhile we haven’t mentioned any prices, bundles, or packages so far, it’s worth noting that Benchmark Email is a completely free email automation app. It comes with a generous number of tools that make it the perfect software for startups, small businesses, or freelancers. But pricing isn’t the only thing that it has going for it; Benchmark Email is also very user-friendly and provides tons of versatile features. The software is designed in such a way that even if you’ve had no experience in email marketing, you can still quickly put together an automated system and have it working in no time. Benchmark Email also has a dedicated support team that’s always ready to answer any questions or guide you through the process of integrating Benchmark Email into your workflow. Pros
Active CampaignA crucial aspect of marketing is making each person in your target demographic feel that you’ve taken the time to understand them and their needs. Active Campaign is preloaded with hundreds of automation presets that can be adapted to your diverse audience, improving your customer relations as a result. If you wish to build greater trust with your audience through email marketing, Active Campaign is highly recommended. You’ll notice just how much of a difference a personal touch can make in email marketing. Pros
HubspotAre you in search of an all-in-one marketing software suite that comes with everything you’ll need for a successful marketing campaign? Then you’ve just answered the question, what is Hubspot? Hubspot is an automation platform that contains a number of CRM tools necessary for diversifying your marketing campaign. You can automate emails, social media marketing, and blog posts all on one platform, making it easy to diversify your content and reach a wide audience. Pros
MixmaxMixmax is another all-rounder in terms of sales engagement and email automation software, as it comes with all the necessary tools you’ll need to create and maintain your automated email marketing and sales outreach. It can be easily integrated into software that you and your team most likely use, such as Gmail, Slack, Zoom, Salesforce, etc. So, while Mixmax doesn’t come with every tool and plugin that other similar software tends to include, its intuitive interface and pricing model are great for businesses looking to start an email marketing campaign. Pros
Automate Your Email MarketingThese are only five of the many email automation platforms out there. There are plenty of others that provide their own unique specializations and tools, such as the Mailtrap automated email testing system or Convertkit. And now that we’ve narrowed down the options, you should have a better idea of which email automation software is right for you. Consider the needs of your business, how you plan to use email marketing, and how it’s going to help you grow. Once you’ve answered those questions about your own needs and expectations, your choice should be pretty clear. via Freelancers Union Blog https://blog.freelancersunion.org/2023/03/28/the-best-email-automation-software-to-use-in-2023-five-reviews/
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IRS Tax Tip 2023-35, March 20, 2023 Taxpayers who can't pay their tax bill by the April 18, 2023, deadline shouldn't panic. The IRS offers several options to help them meet their obligations. It's important for taxpayers to file their tax return or request an extension of time to file at IRS.gov/extension by the April 18, 2023, deadline – even if they can't pay their full tax bill. Doing so will help them avoid a failure-to-file penalty. This extension applies only to the filing deadline, not the payment deadline. Except for eligible victims of recent natural disasters who have until Oct. 16 to make various tax payments, taxpayers who can't pay the full amount of taxes they owe by April 18 should file and pay what they can. Making a payment, even a partial payment, will help limit penalty and interest charges. For taxpayers who cannot pay in fullTaxpayers struggling to meet their tax obligation may consider these payment options. Online payment plansTaxpayers who owe but cannot pay in full by April 18 don't have to wait for a tax bill to set up a payment plan. They can apply for a payment plan at IRS.gov/paymentplan. These plans can be either short- or long-term.
Offers in compromiseAn offer in compromise lets taxpayers settle their tax debt for less than the full amount they owe. It may be an option if they can't pay their full tax liability or doing so creates a financial hardship. The IRS considers a taxpayer's unique set of facts and circumstances when deciding whether to accept an offer. Taxpayers can see if they're eligible and prepare a preliminary proposal with the Offer in Compromise Pre-Qualifier Tool. The IRS offers penalty relief to eligible taxpayers Taxpayers may qualify for penalty relief if they tried to comply with tax laws but were unable due to circumstances beyond their control. Here's what taxpayers should know about possible penalties and interestTaxpayers who owe tax and don't file on time, may be charged a failure-to-file penalty. This penalty is usually five percent of the tax owed for each month or part of a month that the tax return is late, up to 25 percent. The failure-to-pay penalty applies if a taxpayer doesn't pay the taxes, they report on their tax return by the due date. Interest is based on the amount of tax owed and for each day it's not paid in full. The interest is compounded daily, so it is assessed on the previous day's balance plus the interest. Interest rates are determined every three months and can vary based on type of tax; for example, individual or business tax liabilities. More information is available on the interest page of IRS.gov. An extension of time to file is not an extension of time to pay. An extension only gives taxpayers until Oct. 16, 2023, to file their 2022 tax return, but taxes owed are still due April 18, 2023. More information:via Freelancers Union Blog https://blog.freelancersunion.org/2023/03/28/options-for-taxpayers-with-a-tax-bill-they-cant-pay/
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The gig economy is clearly booming. The International Labor Organization estimated that in 2020, over 40% of the adult population in the United States participated in the gig economy to some degree. Of course, most of us don’t need an expert to tell us that — nearly everyone you talk to has some form of a side hustle, whether it’s parents driving for Uber while the kids are at soccer practice, or artisans picking up contracts to make and sell certain goods. However, with all of this activity in the gig marketplace, it can make it harder for those trying to break into the market to find their niche and attract customers. Although freelancing has numerous perks such as being your own boss and setting your own hours, it can be exceptionally hard to be profitable. Expanding a customer base can be even more challenging. Today, many people are turning to social media to promote themselves as gig workers. Marketing yourself in this way can be a powerful opportunity not only to get your name and your skills out there, but also to build a brand and reputation people will come to trust. It can take a bit of footwork to get underway, but the benefits stand to far outweigh the extra effort. Building a Personal BrandThe first step to really marketing yourself using social media is to build a personal brand. Branding is a cornerstone of all businesses. A positive, recognizable brand is one that most people are going to choose over the unknown. Great branding and marketing will drive customers in, while poor branding may actually do more harm than good. It all starts with determining what exactly you want to portray about yourself and your business. From there incorporating some graphic design work including a color scheme, logo, and basic brand messaging will help people begin to recognize your brand and understand what you’re really offering. You have a lot of leeway here to tell your story and create a message that is uniquely you — make the most of it! Next is to take your new branding out on the street. It involves showcasing your work regularly on all of your social media channels and it requires work. In addition, you need to ensure that you are effectively using your brand when creating and implementing a marketing strategy. Having consistency throughout your marketing cycle not only ensures that you can sell your services and your personal brand well, it also means that your audience has a solid understanding of who you are. Creating a reputation as a hard worker, generous community member, and well-connected gig employee is hard work, but the effort may eventually start to snowball into something much, much bigger. Personal vs. Professional — Is There a Difference?One of the most difficult balances to strike as a gig employee marketing yourself on social media is the line between personal and professional. For many, that line is exceptionally gray and they find themselves marketing and advertising themselves in the same social space where they are interacting with friends and family. This ultimately has some major potential positives and potential negatives. A major benefit of keeping your professional and personal lives tightly linked on social media is that you have a ready-made group of followers. That is, all of your friends, family, and random acquaintances that you’re already friends with on social media. Having this base in place can provide a strong platform to begin marketing yourself and have it feel more organic. For some companies, especially those that hire influencers to market their products, this more personal, real-life feel can be invaluable. Chances are, if some of these friends don’t already have a need for your skills they might know someone who does. Of course, for every positive aspect there is a negative one too. Many business professionals strongly recommend keeping your personal and professional account separate. There are a number of reasons for this, including:
Ultimately, the choice to create a professional account for your gig work is up to you. Weighing the potential costs and benefits before making this decision is valuable as your gig business could depend upon it. In the end, one of the golden rules is don’t post or share any information that you wouldn’t talk to your potential customers about openly. Catering to Your AudienceAs you become more comfortable marketing yourself in the social media sphere, another question is likely to come up — who exactly are you trying to reach? Finding your target audience is the crux to gig success and you’ll probably be surprised by the answers when you really stop to think about who your customers really are. Quick answer: your audience isn’t everyone. In reality, there is probably a specific demographic of people that are most interested in the skillset you are offering. For instance, if you are a freelance photographer, you might be more interested in connecting with young couples and families that are interested in having professional photos of major life milestones like getting married or having a baby. Of course, that doesn’t mean you won’t attract other customers. It just means you might put more effort into appealing to your specific niche audience on social media, whether through your social networking, business specials, or other marketing tools. Social media is a powerful tool for marketing yourself and your gig skills to a broader audience. Building a strong personal brand, creating connections, and finding your target audience are great first steps to really putting yourself out there and getting hired. via Freelancers Union Blog https://blog.freelancersunion.org/2023/03/22/using-social-media-to-market-yourself-as-a-gig-worker/
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Freelance Tax Alert! Did you file a 2019 or 2020 tax return during the pandemic? If so, it’s possible that if you filed in the postponed periods between April 16, 2020, and July 15, 2020, or April 16, 2021, and May 17, 2021 that credits you claimed and refunds you filed could now fall outside of the three-year tax refund lookback period that the IRS typically allows for. To rectify this, the IRS has recently taken action by eliminating the mismatch between the time for filing a claim for credit or refund and the three-year lookback period caused by postponing certain filing deadlines for tax years 2020 and 2021. The intended result is to avoid the denial of timely claims for credits or refunds which were included in returns filed based on the pandemic-era postponed deadlines for taxpayers who had withholding or estimated payments. You may recall that the IRS tried to provide taxpayers with some relief and assistance during the COVID-19 pandemic, by postponing filing deadlines. If you are a taxpayer who took advantage of the postponed filing deadlines and are planning to seek a claim for credit or refund, without this recent change by the IRS, you would not be able to because of the misaligned dates. This is because if you believe you have overpaid taxes, you must file a claim for credit or refund with the IRS by the later of:
Keep in mind that the IRS also limits the amount the credit or refund you claim even when you have filed a timely claim, this is what is referred to as the lookback period which is generally two or three years. This particular change to the lookback period only involves the three-year lookback period and is not an extension of the filing deadline. Taxpayers who file claims for credits or refunds within three years from the date their original return was filed will have their credits or refunds limited to the amounts paid within the three-year period before the filing of the claim plus the period of any extension of time for filing the original return. The problem that the IRS is now resolving is that when the IRS postponed the 2019 and 2020 deadlines, the period of the postponement was not included in the three-year lookback period, creating the misalignment of dates. The new guidance from the IRS disregards the period of postponement for filing returns for TYs 2019 and 2020 to determine the beginning of the lookback period which allows for realignment of the three-year lookback period. Another key point to note, the lookback period relief provided here is automatic and you do not have to call the IRS, file any form, or send letters or other documents to receive the relief. Jonathan Medows is a New York City CPA who specializes in taxes and business issues for freelancers and self-employed individuals across the country. He offers a free consultation to members of Freelancer’s Union and has many guides and resources covering tax, accounting and business issues relevant to freelancers on his website, www.cpaforfreelancers.com. Jonathan is happy to provide an initial consultation to freelancers. To qualify for a free consultation you must be a member of the Freelancers Union and mention this article upon contacting him. Please note that this offer is not available March 1 through April 18 and covers a general conversation about tax responsibilities of a freelancer and potential deductions. These meetings do not include review of self-prepared documents, review of self-prepared tax returns, or the review of the work of other preparers. The free meeting does not include the preparation or review of quantitative calculations of any sort. He is happy to provide such services but would need to charge an hourly rate for his time. via Freelancers Union Blog https://blog.freelancersunion.org/2023/03/21/the-irs-adjusts-lookback-period-for-pandemic-era-tax-refunds/
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IRS Tax Tip 2023-18, February 13, 2023 The EITC helps workers who earned $59,187 or less when they file their tax return. Unfortunately, many people risk missing out on the credit because they don't know they're eligible — especially people who had a major life change and may qualify for the first time this year. Other workers at risk for overlooking the EITC include those:
Taxpayers can check their eligibility and how much they qualify for at IRS.gov/eitc. The EITC is a tax credit for certain people who work and have low to moderate income. A tax credit usually reduces tax owed and may also result in a refund. How to claim the EITCTo get the EITC, qualified workers must file a tax return and claim the credit. Eligible taxpayers should file a tax return to claim the credit even if their earnings were below the income requirement to file. Free tax preparation help is available online and through volunteer organizations: Most EITC refunds deposited by late FebruaryAlthough the IRS began accepting 2022 returns on Jan. 23, 2023, the IRS can't issue a refund that includes the EITC before mid-February. This is due to the 2015 PATH Act, which provides this additional time to safeguard against fraudulent refunds. The Where's My Refund? tool should show refund status by Feb. 18 for most early EITC filers. Most EITC -related refunds should be available in bank accounts or on debit cards by Feb. 28 if the taxpayer chose direct deposit and there are no other issues with their tax return. via Freelancers Union Blog https://blog.freelancersunion.org/2023/03/20/the-eitc-is-a-major-tax-benefit-for-millions-of-low-and-moderate-income-workers/
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The new season of cars are starting to roll onto dealership lots, and if a new car is in your future this year you may want to consider buying a new plug-in electric vehicle (EV) or fuel cell vehicle (FCV) to qualify for a clean vehicle tax credit. Here is how to determine if your 2023 vehicle purchase will qualify and what the value of the credit may be:
The Inflation Reduction Act of 2022 changed the rules for this credit for vehicles purchased from 2023 to 2032. To qualify for the credit you must buy the vehicle for your own use primarily in the United States, not for reselling. The recent updates to the regulations regarding the clean vehicle credit have further enriched it by:
In addition, your modified adjusted gross income (AGI) may not exceed these thresholds to be eligible:
You can use your modified AGI from the year you take delivery of the vehicle or the year before, whichever is less. If your modified AGI is below the threshold in one of the two years, you can claim the credit. To claim the credit, you will need to file Form 8936, Qualified Plug-in Electric Drive Motor Vehicle Credit (Including Qualified Two-Wheeled Plug-in Electric Vehicles) with your tax return. You will need to provide your vehicle's VIN. Ready to start the process of purchasing an electric vehicle in 2023? Now may be an ideal time to do it based on the tax incentives available. If you have questions, talk to a tax professional about whether your potential new clean vehicle purchase will qualify for this tax credit. Jonathan Medows is a New York City based CPA who specializes in taxes and business issues for freelancers and self-employed individuals across the country. He offers a free consultation to members of Freelancer’s Union and has many guides and resources covering tax, accounting and business issues relevant to freelancers on his website, www.cpaforfreelancers.com. Jonathan is happy to provide an initial consultation to freelancers. To qualify for a free consultation you must be a member of the Freelancers Union and mention this article upon contacting him. Please note that this offer is not available March 1 through April 18 and covers a general conversation about tax responsibilities of a freelancer and potential deductions. These meetings do not include review of self-prepared documents, review of self-prepared tax returns, or the review of the work of other preparers. The free meeting does not include the preparation or review of quantitative calculations of any sort. He is happy to provide such services but would need to charge an hourly rate for his time. via Freelancers Union Blog https://blog.freelancersunion.org/2023/03/16/take-advantage-of-new-green-vehicle-tax-credits-to-reduce-your-2023-freelance-tax-bill-2/ |
AuthorI have 5+ years experience working as a medical transcriptionist. When I am not working, I enjoy sports like playing basketball or judo. I love making friends and connections. Archives
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