https://blog.freelancersunion.org/content/images/2019/07/FU_So_Youre_Being_Audited_lg.png
This article was first published by the IRS and has been reproduced with permission. Subscribe to IRS tax tips here. With scam artists hard at work all year, taxpayers should be on the lookout for a surge of evolving phishing emails and telephone scams. Taxpayers should watch for new versions of two tax-related scams. One involves Social Security numbers related to tax issues. The other threatens taxpayers with a tax bill from a fictional government agency. Here are some details about these scams to help taxpayers recognize them: The SSN scheme
Fake tax agency
Both these schemes show classic signs of being scams. The IRS and its Security Summit partners – the state tax agencies and the tax industry – remind everyone to stay alert to scams that use the IRS or reference taxes. via Freelancers Union Blog https://blog.freelancersunion.org/2019/07/22/look-out-for-these-tax-scams/
0 Comments
https://blog.freelancersunion.org/content/images/2019/07/Blog_BuildBusiness_Index.png
This is a sponsored resource from Joust, the first financial services company animated by and focused on the unique needs of freelancers. What if your bank admired your passion and respected your work? And what if it could guarantee you got paid? PayArmour, a revolutionary new solution from Joust, takes the hassle out of invoicing clients and protects you against client nonpayment. There’s probably a list in the back of your head of things you know you should do to get your finances in order. How are we going to make those happen? Let’s break it down, get a game plan, and walk you through it. Measure and get a baseline of your financesStart with a few big numbers. See where you stand. Don’t judge yet, this is the start of the process for improving your freelance financial health. We’re getting a baseline. For the last full month calculate:
Shining the light of day on financial issues can be uncomfortable for some of us—OK, make that a lot of us. Good for you for taking the first step. Analyze what you’ve got so you know where you’re goingNow that you have those big-picture numbers, assess what’s happening. The basics:
Last month’s revenue may have been low because you were on vacation or because you’re still launching your freelance practice. Add a time variable to your calculations: measure up the prior month(s) and measure again at the end of this month.
If you can’t see an obvious trend that’s OK: freelance revenue is notoriously volatile! Digging deeper:
If the numbers look alright, congratulations! Next, we can make sure you’re set up for the long haul. If the numbers worry you, hang in there. We can figure this out. Make a plan of attackLet’s make the safe assumption that you could probably improve your financial situation by driving down some expenses and/or driving up your revenue. Tackle at least one of those three big numbers. Or take them all on, in any order. Business growth If you are just getting started or your revenue is lagging, this is an obvious choice. Even the well-established freelance professional may want to review these variables periodically:
If the market is strong, but your pipeline is low, focus more on the business development tasks. Spend some time on LinkedIn, invite a contact out for coffee, or increase your Google Ad spend. Get out there. If your pipeline is strong, but your time is limited, try raising your rates and see what happens. Perhaps try the higher rate out on a new client, to see what the market will bear, before renegotiating with a steady client. Some of us choose freelancing because we don’t have the bandwidth for a full-time position. Consider a few sub-variables that could affect your billable hours:
Personal/household expenses Budgeting is a huge topic, with plenty of books, apps, and advice of varying quality. There’s a “personal fit” issue with these — we’re all wired a bit differently. The important part: engage with something that will track your actual spending against your intentions. A light lift: Does your current bank account have any built-in personal financial management tools? (This is where Joust’s Savings Goals can help!) Give those a shot and see if they’re helpful. If that doesn’t make a difference, try something else. Features you want to look for in budgeting tech tools:
At Joust, we designed our banking platform to have all of these. Business Expenses The complexity of your business expenses will vary depending on your line of work. Your numbers are probably in decent order because you’ve had to tally them up to file your taxes. Consider how you fit among these three accounting archetypes:
Is your current tracking process working for you? If your business growth efforts are going well, you may need to move to a more involved or formal approach to keep a handle on business expenses. Organize & accountIn a perfect world, you would start here and do everything the right way from the get-go. More likely, the first three steps have made you appreciate the need for better accounting and business structures. And hopefully, you’ve built up some financial management momentum. Time to get serious. Start thinking of yourself as a small business owner with a staff of one. (We like the term “solopreneur.”) Here are some structural steps to take now, if you haven’t already:
Buffer & buildCongratulations, you’ve just hired yourself as the head of HR! You’re now in charge of designing your ideal benefits package — and you have the control to make it a good one that encompasses more than just health insurance (which warrants a whole other guide). Here are the basics for your freelance financial security:
via Freelancers Union Blog https://blog.freelancersunion.org/2019/07/19/setting-up-your-freelance-finances-an-action-plan/
https://tonygentilcore.com/wp-content/uploads/2019/07/books-3-1024x606-1-1-1-1-1-1024x606.jpg
BUT FIRST…CHECK THIS STUFF OUT1. Strong Body-Strong Mind Workshop – Chicago, IL (w/ Dr. Lisa Lewis)This will be the only time Dr. Lisa Lewis and I will be presenting this workshop together in 2019. In previous years we’ve presented it in Boston, London, Toronto, Bonn (Germany), and Austin, TX. This 1-day workshop is targeted towards fitness professionals and digs a little deeper into what really “bogs” them down and stresses them out…. …their clients! We’ll be covering a multitude of both psychological and physical techniques to better serve your clients and YOU. FYI: There’s only ONE more week to take advantage of the Early Bird rate. Go HERE for more details and to register. SOCIAL MEDIA SHENANIGANS
STUFF TO READ WHILE YOU’RE PRETENDING TO WORKHow to Get Yourself to Workout When You’re Depressed – Aleisha FettersNo witty introduction here. This is a very serious topic that affects many, many, many people…,maybe even you. Some fantastic insights and strategies provided by Aleisha in this article. Diagnostic Doomspeak – Kieryn MarcellusSTOP TELLING YOUR CLIENTS THEY’RE WALKING BALLS OF FAIL Go Ahead in the Rain: Notes to a Tribe Called Quest – Hanif AbdurraqibMy wife picked this up for me as she was perusing books to read while we’re away on vacation. She saw the title (and the topic) and knew I’d love it. And I do. A lot. Anyone who grew up in the early to mid-90s and listened to hip-hop in that era will appreciate Hanif’s seamless ability to intertwine the nostalgia of groups like Tribe, Wu-Tang Clan, Dre, and N.W.A (and everything they stood for and what they did to elevate hip-hop and culture) with events in his own life and what it was like to grow up as a young black man in America. Beautiful, witty, humorous, and oftentimes heart-wrenching writing. Did what you just read make your day? Ruin it? Either way, you should share it with your friends and/or comment below.via Blog – Tony Gentilcore http://tonygentilcore.com/2019/07/stuff-to-read-while-youre-pretending-to-work-7-19-19/
https://blog.freelancersunion.org/content/images/2019/07/blog_MorningPeople_index-11.png
This is a post from a member of the Freelancers Union community. If you’re interested in sharing your expertise, your story, or some advice you think will help a fellow freelancer out, feel free to send your blog post to us here. In late spring of 2011, I became a freelancer. By early December of 2011, I'd returned to cubicle life. Some may deem that a failure. But rejoining the full-time workforce was, hands down, the right decision. Still, I never forgot what succeeding as a business owner would take. I thought, “Someday, this will be my career path.” Fast forward eight years and that someday is today. (Technically speaking, someday was in January.) This time around, I’ve devoted countless hours to learning the art of self-employment. The investment has spared me from mistakes small and large. But no learning plan accounts for everything. Transitioning from 12 years in corporate settings to a solo venture requires adjustment. Over the past six months, the most interesting lessons have been the ones I never saw coming. Lesson #1: Use a real alarm clock and keep your phone out of reach Full-timers assume that the greatest thing about freelancing is waking up whenever you want. I submit it’s also the worst. Starting the day with no set schedule is one thing. But staying awake in bed for an hour every morning because I wouldn’t put my phone down created a real problem. My late starts often left me working past dinner and sacrificing evenings. After a few months, I knew nothing would change until I fell asleep and woke up away from my phone. In the recesses of my closet I found a 15-year-old LED alarm clock. I plugged it in, replaced the back-up 9 volt, and never looked back. My phone charges on a dresser out of arm’s reach but close enough to answer an emergency call. As a bonus, I’m reading before bed again and falling asleep sooner. Lesson #2: You don’t need every piece of tech imaginable In my younger and more vulnerable years, I read a bit of personal finance advice that stuck. The writer suggested to delay luxury purchases for two months. At that point, the desire is either long gone or has steadily grown. Investing in a semi-professional microphone for podcasting seemed absolutely necessary not long ago. I had zero bookings to interview on a podcast, let alone solid plans to start my own. Within a few weeks the urge passed. As of today, I’m happily microphone- and podcast-less. That’s not to say I haven’t upgraded my office setup. After impatiently waiting the full two months, I pulled the trigger on a 32" UHD 4K monitor. The time I’ve saved no longer toggling between multiple windows more than covers the cost. In my book, that’s money well spent. Lesson #3: When it’s your business, strong passwords matter All my login credentials lived in an offline spreadsheet. Four, maybe five, passwords comprised my heavy rotation. Miraculously, I’ve lived to tell the tale of poor password habits unscathed. Before self-employment, using strong passwords and managing them properly wasn’t a goal. It was a happy accident. But going solo involves signing up for numerous sites you’ll want to separate from your personal life. Login credentials relate directly to your bread and butter. You’ll want to ensure that they’re as secure as possible. For me, that meant finally using a password management system. Once all these new business logins were securely stored in one place, I reset all my weak passwords. Now I have peace of mind after years of intermittent worry. Plus, never having to remember credentials is priceless. Everything’s right there whether I’m on my computer or phone. Lesson #4: If the conventional wisdom doesn’t feel right, it probably isn’t 98% of the advice I’ve received in my professional life has been spot on. Incorporating this constructive feedback isn’t easy, but it’s given me an edge. Then there’s the remaining 2%. It’s rarely flat-out wrong. In fact, peers you admire may swear by it. But something’s off. Maybe it doesn’t reflect your personality or goals. Doubting popular, proven consensus feels wrong when you’re new to the game. If a recommendation genuinely doesn’t work or feel right to you, don’t force it. Ditch it. My moment of defiance came early. Many freelancers take strong measures to limit calls with clients or prospects. I get it. We’re all busy, and the last thing the world needs is yet another pointless meeting. I’m not volunteering for calls, but I’m more than willing to chat. One-on-one conversation comes naturally to me. It’s how I’ve forged strong business relationships, some of which have blossomed into lasting friendships. Yes, it’s arguably not the best use of my time. Some calls have ended up going absolutely nowhere. The truth is I don’t care. Maybe I’ll think differently once I have a larger client roster with projects booked out months in advance. Until then, I’ll gladly make time to talk. Lesson #5: Errands are your friend During my corporate days, I changed into PJs within two minutes of coming home. Going anywhere after work was a drag. Why people socialized on weeknights baffled me. Now I relish evening grocery store runs or mid-day walks to Walgreens for a few necessities. My online shopping for household staples is non-existent. Getting out of the house is a privilege, not a chore. To keep from falling victim to hermitude, find small tasks you could use Postmates for but prefer doing in the real world. Every day I step out for a walk around the block. (Even during Chicago winters, there’s plenty of snow to shovel or ice to salt.) On the rare occasion I have something to mail, I drop it in a collection box five blocks away. It’s not much, and that’s the point. A few extra errands and walks strike the right balance for me. It keeps me a little engaged with the community outside my four walls. Lesson #6: Routines take time and experimentation to nail My schedule is far from set. Or far from where I thought it would be by now. I figured I'd find my groove within a couple months. In reality, I stopped observing the "no meetings hours" I’d set on my calendar within two weeks of adding them. If you’re not willing to reschedule a meeting request that interferes with blocked time, your calendar isn’t a calendar. It’s a recommendation. Your schedule won’t work until you take it seriously. You can become rigid, adhering to your regimen no matter what. Or you can question why it’s not working and try something new. Keeping my time organized and predictable felt like the key to success. In reality, continuously adjusting what’s not working is more important. In this case, growth trumps consistency. It turns out many solo business owners take a year or 18 months to find their rhythm. I’m giving myself some leeway. And I’m always trying new approaches to budgeting my time. In conclusion This second foray into self-employment has been worlds different. Instead of signing an offer letter six months in, I’m growing my business and helping fellow freelancers. My planned learning will never stop. But in all honesty, I’m more eager to see what unexpected lessons come next. Jesse Butts is a writer, marketing consultant, and founder of Calque Marketing. You can find him at www.jessebutts.com … just as soon as he gets around to building it. Until then, feel free to connect on LinkedIn. via Freelancers Union Blog https://blog.freelancersunion.org/2019/07/18/6-lessons-i-learned-in-6-months-of-freelancing/
https://tonygentilcore.com/wp-content/uploads/2019/07/Podcast-1024x683.jpg
Lisa and I had an amazing 1-day excursion into the Barossa Valley yesterday where we visited seven (yes, SEVEN) different wineries. Needless to say Lisa was feeling, well, pretty damn good. As I type these words we’re in the Adelaide airport awaiting our flight to Melbourne where we’ll meet up again with Dean Somerset so he and I can teach our (Even More) Complete Shoulder & Hip Blueprint workshop. After that Lisa and I have two full days to explore Melbourne. Any suggestions? In lieu of my travel plans I obviously haven’t placed any emphasis on writing any new content; vacation Tony doesn’t mess around. Nevertheless, I do have some content for you today: my latest podcast appearance on The Todd Nief Show. Enjoy! Hip-Hop, Psychology of Being a Coach, and Shoulder ShenanigansNOTE: Lisa and I will be at Todd’s gym, South Loop Strength & Conditioning in Chicago, IL on August, 18th to teach our Strong Body-Strong Mind Workshop. There’s only a little more than a week left to take advantage of the early bird rate (and CEUs will be available). Details below. —> CLICK ME (that tickles) <--Okay, onto the show! Todd Nief is the founder of South Loop Strength & Conditioning in Chicago and he and I had the opportunity to sit down and chat a few weeks ago about everything from common mistakes people make when trying to increase shoulder ROM and how to create “buy in” with potential clients to why the word “dysfunction” should be the LAST word you use as a coach and some of the psychological pitfalls many people fall prey to when it comes to training. You can listen below here: Or, if you prefer, you can download on iTunes HERE (you snob). Thanks for listening. Did what you just read make your day? Ruin it? Either way, you should share it with your friends and/or comment below.via Blog – Tony Gentilcore http://tonygentilcore.com/2019/07/latest-podcast-appearance-the-todd-nief-show/
https://blog.freelancersunion.org/content/images/2019/07/FU_Blog_WhatToDoHealthInsurance_Blog.png
What is disability insurance?Disability insurance protects you from losing all your income if you become incapacitated after an accident or illness. In the event that you become unable to earn an income, benefits will kick in and replace a portion of your previous monthly income. Do I really need disability insurance?Many freelancers prefer not to invest in additional insurance in order to protect their monthly take home pay. But freelancers also don’t have the luxury of paid time off or sick leave. So, if your income is needed to pay for housing, food, school, medical bills or other expenses, and your savings will tap out after a month or two, chances are you need disability insurance. When should I purchase disability insurance?Just like life insurance, disability insurance costs less the younger and healthier you are when you purchase your policy. So, if disability insurance is something in which you know you’ll be investing, now is the time to go for it. How is “disabled” defined in these policies?Definitions vary by plan and profession, but a good rule of thumb for our Guardian-managed policies is that you are disabled if you're unable to perform the duties of your regular occupation. In fact, that is one of the greatest benefits of our freelancers’ policies: there are no penalties for your chosen profession. How much coverage do I need?Every household is different, but a good guideline is to seek a policy that will replace about 50% of your average monthly income (this may be tough to calculate for freelancers, so you’ll want to examine the past six months’ income to get an accurate picture of income needs). What will my benefits be?Like coverage, benefits will be calculated as a percentage of your current taxable income (the pay you brought home after allowable deductions like business expenses). In order to calculate your benefits, Guardian will examine several years of tax returns to determine an average annual income level. When will my benefits kick in?Any disability policy will have an elimination (waiting) period before you can begin collecting benefits. The elimination period begins on the first day of your illness or injury. Freelancers Union offers policies with both 30- and 90-day waiting periods to meet your needs. The 90-day policies will carry lower premiums than those of the 30-day policies. How much should I expect to pay?Rates vary, but will be determined by a combination of factors, including:
Even with these varying factors, your monthly out-of-pocket premiums will likely cost you between $10 and $30. Get more information on our disability insurance coverage and rates here. via Freelancers Union Blog https://blog.freelancersunion.org/2019/07/17/freelancers-union-disability-insurance-at-a-glance/
https://tonygentilcore.com/wp-content/uploads/2019/07/play-1024x683.jpg
I’m currently in the Barossa Valley with my wife. There’s not a chance in hell I’m writing a blog post this week. Thankfully TG.com regular contributor, Shane McLean, was a champion and took it upon himself to pinch write for me. Thanks Shane! The Lost Art of (Adult) PlayWhen you were a kid, (I assume) you were a blur of movement. One moment you’re tugging on your dads leg and the next moment you’re chasing the dog (or cat, sorry Tony) throughout the house, tearing shit up while your father is trying to figure out how you moved so quick. Like the flash baby. [embedded content] There was no stopping you. Then age, responsibilities, jobs, kids, bills and a mortgage took care of all that. With more adult time there comes less play time because you have to grow up sometime, correct? Well some of us do and some of us don’t. I’ll leave it to you to determine where you are on the kid scale. However, now to keep up your lean machine look, you hit the gym and do squats, presses, pulls and curls so you can keep up with the younger generation, to feel less like an old fart and more like a superhero, crushing everything in your path. However, trying to recapture your childhood through exercise is fine but acting like a one (or Flash Gordon) is okay frowned upon. So please keep your tantrums under control. You cannot have desserts before your main meal. Whoops, I’m projecting. Let me get back on track. During your early childhood, you discovered what you were capable of and what you get away with through playing. But What is Play?Play is an activity done for its own sake, with no real goal in mind and play is characterized by flexibility (making up stuff as you go along), and the positive effect it often has on the person playing (smiling, laughing, and having fun.) (1) The exact role of play in learning is often debated and opinion tends to exaggerate the evidence for the essential role of play. However, other evidence suggests the important benefits of play and its contribution to learning. (2) What Has This Got to Do With You?How does play benefit you now, the adult trying to shed fat and crush PR’S in the gym? Firstly, it gives you a welcome break from the barbell. When you get wrapped up with the weight on the bar and have the blinkers on, other things like moving in different directions and a little thing called cardiovascular exercise gets neglected. When ‘playing’ you may discover your weaker points that are holding you back. Secondly, it may help you through a plateau and improve your co-ordination. When you were a child, you engaged in locomotor (exercise) play, which involves physical activity to support the training of your muscles for strength, endurance, and skill. Think of the local school or park playground and all the fun you had on the swings and monkey bars. Back then, play was the neural and muscular basis of your physical co-ordination and physical growth. And going back to ‘play’ may help you break through your sticking points and make exercise more enjoyable. (3) And when things are enjoyable, you’re more likely to do them. Who’s up for crushing their goals with a smile on their face? If you answered yes, start inserting these ‘play’ drills into your routine (or separately on off days) because the gym is the one place where nobody cares if you act like a child. Because they’re all too busy taking Instagram selfies. 1. Reaction Ball Drills[embedded content] And who doesn’t like playing with balls? The beauty of the reaction ball is movement without thinking. See the ball, go get the ball. And before you know it you’ve performed squats, hinges and dozens of lunges without realizing it. Furthermore, training hand-eye co-ordination never goes astray. And with so much of your program planned, it’s great to add a little chaos and uncertainty to it. 2. Agility Ladder Drills[embedded content] Some coaches’ poo-poo on the agility ladder while other coaches over emphasize it with athletes trying to get them faster. However, there is plenty of middle ground and they’re another tool in the toolbox. But for the regular joe, who’s looking for a little variety, a fun way to get the heart rate up and to raise a sweat while improving their co-ordination, these drills are perfect. The agility ladder will help you learn a wide array of different movement patterns without you even realizing it because you’ll be having too much fun. 3. Friendly CompetitionExercising with a partner is shown to increase exercise adherence. Use these fun drills will a friend and you’ll be sweating and smiling in no time. 4. Stability Ball WrestleYou and your partner will be too busy trying to knock each other off-balance, and not realizing that you’re working on your ankle stability/mobility, balance and core stability. Set Up – Put one foot on top the ball making sure your knee is bent 90 degrees. Your partner puts the opposite foot on the ball, directly across from you Rules – Both people are trying to knock the other one-off balance by rolling the ball aggressively with their feet. This exercise can be done either as warm-up, for 30 seconds or so on each foot or you can turn this into a full-blown friendly competition. Every time some loses his/her balance it results in a point for the opponent. First to 5 or 10 points wins. 5. The BoxerThis exercise with work on your power, muscular endurance and hand-to-eye co-ordination. You’ll be too busy hitting your partner’s hands to realize any of this. Set Up – Use a resistance band with handles looped round a solid anchor point. Bring hands to shoulder level and keep the resistance band tight. Your partner puts hands up, open palms facing forward and away from the face. Rules- Hit the open palm (with a clinched fist), one hand at a time. Your partner can change his/her hand position up, down or left and right to increase the challenge. Do this for time (30 seconds) and record the amount of hits, and then your partner can try to beat it. Winner takes all, baby. Wrapping UpExercise doesn’t always have to be a grind. Taking a slight break to think and play like a child is reinvigorating and a welcome break from the barbell. And because you’re an adult now, you can have dessert before dinner. Knock yourself out. About the AuthorShane “Balance Guy” McLean, is an A.C.E Certified Personal Trainer working deep in the heart of Louisiana with the gators. References
Did what you just read make your day? Ruin it? Either way, you should share it with your friends and/or comment below.via Blog – Tony Gentilcore http://tonygentilcore.com/2019/07/the-lost-art-of-adult-play/
https://blog.freelancersunion.org/content/images/2019/07/FU_Blog_15Instruments_Index.png
This is a post from a member of the Freelancers Union community. If you’re interested in sharing your expertise, your story, or some advice you think will help a fellow freelancer out, feel free to send your blog post to us here. Are you thinking about becoming a freelance digital artist? Before you get started, set yourself up for the best possible success with a solid plan for your finances, equipment, and career trajectory. Get the tools you needUnfortunately, art software and hardware cost a lot. So if you want to become a freelance artist, you should be ready to dig into your savings for essential tools. If you have a really tight budget, you may avoid overspending in the following ways:
Calculate your freelance hourly rateIf you currently have a high-paying job, it might be scary for you to leave the office and start freelancing. Yep, it’s highly likely that you will face some temporary financial instability in the first few months of freelancing. But as soon as you become an expert in your niche, you will get enough contracts to hit your financial goals. To overcome financial difficulties, you should calculate your optimal freelance hourly rate. You can do it in three steps:
Take advantage of tax deductions“As a freelancer, you are eligible to deduct all expenses related to your work from taxable income,” says Miller, the content manager at Top Writers Review. Here is a list of deductions he cites:
Create the perfect freelance profileIf you want to sell your services at a high price, you should create a winning profile. Try to find the right words to present yourself in the most favorable light. Your freelance profile should include the following items:
Be active on social mediaToday, social media runs the world. And if you want to become a successful digital artist, you should promote your works on Instagram, Facebook, LinkedIn, and YouTube. It will help you to find new clients and boost your revenue. Visit conferences and festivalsEven if you work from home, you should still communicate with other professionals in your niche. And if you want to meet new people who share your passion for designing, you should visit conferences and expos. Here is a list of must-attend events in 2019:
In conclusionIf you really want to become a digital artist, let nothing to stop you on the way to your goal. And if you believe that it’s time for you to start freelancing, don’t hesitate to make the first step. Your new career opportunities are right in front of you, don’t hesitate to take them! Daniela McVicker is a blogger with rich experience in writing about UX design, content planning, and digital marketing. She helps individuals and organizations improve their web content writing, design, and planning skills. via Freelancers Union Blog https://blog.freelancersunion.org/2019/07/16/how-to-start-a-freelance-career-as-a-digital-artist/
https://blog.freelancersunion.org/content/images/2019/07/Blog_Painting_Index.png
This article was first published by the IRS and has been reproduced with permission. Subscribe to IRS tax tips here. Many people enjoy hobbies that are also a source of income. From painting and pottery, to scrapbooking and soap-making, these activities can be sources of both fun and finances. Taxpayers who make money from a hobby must report that income on their tax return. However, the rules for how to report the income and expenses depend on whether the activity is a hobby or a business. There are special rules and limits for deductions taxpayers can claim for hobbies. Here are five things to consider: 1) If the activity is a business or a hobbyIf someone has a business, they operate the business to make a profit. In contrast, people engage in a hobby for sport or recreation, not to make a profit. Taxpayers should consider nine factors when determining whether their activity is a business or a hobby. They should base their determination on all the facts and circumstances of their activity. 2) Allowable hobby deductionsTaxpayers can only deduct ordinary and necessary hobby expenses:
3) Limits on hobby expensesTaxpayers can generally only deduct hobby expenses up to the amount of hobby income. If hobby expenses are more than its income, taxpayers have a loss from the activity. However, a hobby loss can’t be deducted from other income. 4) How to deduct hobby expensesTaxpayers must itemize deductions on their tax return to deduct hobby expenses. Taxpayers can look into this now to determine if they will itemize their deductions when they file their 2019 tax return next year. Expenses may fall into three types of deductions, and special rules apply to each type. 5) Use IRS Free FileHobby rules can be complex. IRS Free File can make filing a tax return easier.
Publication 334, Tax Guide for Small Business Publication 525, Taxable and Nontaxable Income Publication 529, Miscellaneous Deductions Publication 535, Business Expenses Publication 17, Your Federal Income Tax About Schedule C, Profit or Loss from Business via Freelancers Union Blog https://blog.freelancersunion.org/2019/07/15/do-you-make-money-from-a-hobby-know-these-tax-tips/
https://blog.freelancersunion.org/content/images/2019/07/FU_Blog_NeedToKnowContracts_Index.png
This is a post from a member of the Freelancers Union community. If you’re interested in sharing your expertise, your story, or some advice you think will help a fellow freelancer out, feel free to send your blog post to us here. After graduation, I decided to avoid the corporate route and plunge straight into freelancing. It's been a little over a year now, and one thing I've learned (the hard way) is to always work with a freelance contract. Many freelancers make critical mistakes with their contracts, and others don’t even bother making one. But ignorance is not bliss, and not having a freelance contract can lead to serious problems:
So let’s get started! Wait! Do I even need a freelance contract?YES. You see, there's no HR person to go to when things go haywire. What's more, freelancing is a business, and in any business you need to make sure your rights are protected. Enter the freelance contract, an important document that defines the whats, whys, and hows of your freelance project. In theory, It may sound obvious to have one, but many freelancers (like myself) do not spend enough time on the same. We're eager to land new clients, and when we do, it's easy to overlook tedious (but important) tasks like creating valid contacts. In my case, I spent not more than 10 minutes on creating a contract for my very first “big” freelancing gig. The result? For many months, I was asked to do more work than I had expected (AKA project creep). Plus, the client had unrealistic deadlines as I didn't define them clearly at the start. On the whole, the project turned out to be a nightmare. Remember, don’t be that freelancer. Before you begin work make sure you and your client agree on a mutually beneficial contact so that the project starts off on the right foot. In NYC, the Freelance isn’t Free Act states that anyone entering into a freelance agreement paying over $800 needs to have a contract — it’s now the law. 5 mistakes to avoid at all costs:1)Not working with cash downAlways take upfront payment before you start working on a project. Even if you’re working with well-known brands, if a project is going to take a lot of time, make sure you don't run into cash-flow problems. Factors to consider:
2) Having no payment termsNo matter the size of a project, it’s always a good idea to establish payment terms that apply to the balance payment. After all, the upfront payment is only a small chunk of the project, so it’s important to have payment terms for the rest of the project. Conditions to consider:
Here’s an example: “[Your name here] will invoice [Your client's name here] on [XYZ] day of each month for that month’s delivered work. Payment must be received by the client by the [include deadline here] of the next month to avoid a late fee of [XYZ%] late fee on the next invoice.” 3. Not setting boundariesFreelancing offers you a lot of freedom, but you need to take extra measures to protect this freedom. For instance, a client can set deadlines for a project, but they cannot demand you to work at particular times or to be "on-call." So it's vital to define your freelancing contract and set clear boundaries for the project. Ideas to consider:
Note: I recommend checking with your state’s laws to understand your rights and how to take appropriate action. 4) Not defining scope of projectAt times, clients will want you to do more than what was agreed, and unless you’ve clearly defined the scope of the project, you’ll have no leverage. Don’t be a victim to scope creep. Put the exact tasks you will handle into your freelancing contract, and if a client asks you to do more, decline or charge them an additional fee. Conditions to consider:
Bonus 5) Cushion your attorney feeNow, this isn't a ''freelance contract mistake" but rather an element that most freelancers should utilize in their contract. You see, some freelancers shy away from contracts because they think the legal costs of suing clients is high. Yes, lawyers are expensive, and their fees (in most cases) do exceed the price of the project. But that doesn't mean you have to cover the cost. Instead, you can make the client liable for all legal fees by simply adding a clause in your contract. In this case, clients are most likely to pay you to avoid legal costs — and you will be more inclined to take legal action if needed. Now, creating a freelance contract is beyond the scope of this article, but these questions should be enough to guide you in the right direction. Q: What are the essentials of a freelance contract? A: There are no real rules when it comes to the freelance contract, but make sure you include these elements:
Q: Do I need a lawyer to create a freelance contract? A: I recommend hiring a lawyer only if you are negotiating a contract for a project that’s above $5000. Else, just use freelance contract builder or write a custom one yourself. If you decided to write one yourself, I recommend using tools like Grammarly to check for errors and improve the brevity of the contract. Q: Does a verbal contract count? A: No, it does not. With a verbal agreement, you can't enforce anything, and open yourself up to misunderstandings. I highly recommend creating a written contract. Q: Is a digital signature valid? A: Yes, a digital signature is valid. In fact, signing your name on a form and clicking submit counts as a legal signature in the court of law. I recommended checking out the Master freelancing FAQs page for more information. Always have it in writingLook, I’m not a lawyer, so take my advice with a grain of salt, and if you want a 100% unbeatable freelance contract then create a contract with a lawyer. But if you can’t afford one, make it yourself and be sure to define everything in writing. After all, a freelance contract is a simple way to protect your rights, set expectations, and on the whole, ensure the project starts off on the right foot. Good luck! Mark Quadros is a content writer who helps SaaS and online-business develop content that drives traffic and boosts user engagement. In his free time, he loves traveling and living a minimalist life from his backpack. via Freelancers Union Blog https://blog.freelancersunion.org/2019/07/12/dont-make-these-freelance-contract-mistakes/ |
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
April 2023
Categories |