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Amid all of the doom and gloom related to the continuing COVID-19 pandemic, on December 21, Congress provided a ray of hope with a $900 billion stimulus package — just in time for the holidays. While there are provisions in the bill for individuals, healthcare workers and small businesses, there are some particular perks for freelancers — especially if you participated in the Paycheck Protection Program (PPP) loans from the last two rounds of pandemic-related stimulus funding. This bill is not yet final, meaning there could still be some changes, but here are the provisions of the current relief package that may impact your freelance taxes: · There is more than $284 billion allocated for forgivable PPP loans. As it stands now, even if you did get PPP funding before and you have eligible expenses, you may have another chance to get this funding. The second round of PPP loans is reportedly limited to businesses with fewer than 300 employees that have experienced at least a 25% decrease in revenue during the first, second or third quarter of 2020. It also reduces the amount a borrower can receive from $10 million to $2 million. While there are not concrete details yet, this new bill would also give businesses more flexibility on how they spend PPP funds and further simplify the forgiveness process for loans under $150,000. The bill also earmarks $12 billion for minority-owned businesses and expands eligibility to more nonprofits under the PPP loan program. There is likely to be additional information and details coming out over the next several days and weeks about how this and previous rounds of PPP loans will be treated from a tax perspective. · There is very good news for freelancers who have PPP loans. The most recent guidance related to this new funding states that the Payroll Protection Program (PPP) loan forgiveness amount will not be considered taxable income at the federal level. This could be a significant tax saving for your business. However, there is not any change in the guidance for state and local tax treatment of PPP funds. Therefore, be sure to check with your own state and local tax authorities for additional information. · If you work in the live theater, art or other cultural industry the $15 billion grants included in the bill provides funding for live venues, theaters and museum operators that have lost at least 25% of their year-over-year revenues. The tentative details are that an initial grant can total up to $10 million per eligible business. A second grant, worth half the amount of the first, may also be available. This money must be used for payroll costs, rent, utilities and personal protective equipment. · There is an allocation for $300 per week (for a period of 11 weeks) for enhanced unemployment insurance benefits—and self-employed individuals remain eligible to collect unemployment—with the knowledge that these funds are considered taxable income. · In addition to the above freelancer-friendly tax provisions, the new stimulus bill may also provide some funds to you as an individual ($600 per qualifying adult and $600 per qualifying child) if your income if less than $75,000 per year as a single taxpayer or $150,000 as a married couple filing jointly. Watch for additional updates on this relief bill as more details and IRS guidance becomes available. 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 provides tax, accounting and business articles for freelancers on his website, http://www.cpaforfreelancers.com, which also features a blog and a comprehensive freelance tax guide. Please note, due to the high volume of inquiries in regard to COVID-19, Jonathan is not able to respond to individual requests for information at this time. via Freelancers Union Blog https://blog.freelancersunion.org/2020/12/22/how-the-new-relief-bill-will-affect-your-freelance-taxes/
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Less than two weeks before the end of 2020, Congress passed a $900 billion relief package last night that is expected to be signed quickly by the president, averting a major crisis that would have been caused by the expiration of PUA and other essential relief measures. The package is an increase from the $500 billion “skinny bill” proposed by Senate Republicans in September, but is a drastic reduction from the $2.2 trillion HEROES 2 act passed by House Democrats in October. It includes a number of essential relief provisions, but does not go far enough to provide the kind of material assistance needed by the millions of freelancers who have been unable to work for the past nine months. Here’s what is included:
This reduced package is not intended to be the last word on coronavirus relief, as two main sticking points - funding for state and local governments, a priority for Democratic leaders, and corporate liability protection, a priority for Republicans - were left off the table in the interest of passing something before the end of the year. It’s believed that these provisions will be revisited in January or February, after the Georgia runoff elections determine the makeup of the Senate. We know more robust support - full rent & mortgage forgiveness, a return of the FPUC benefit to its original $600 level, stimulus payments that will allow all workers to stay home safely until the pandemic is ended - is still needed. That’s why we will continue to advocate for freelancers’ needs in January, once the Biden administration takes office and the new Senate is seated. In the meantime, we'll keep you updated on the implications of this package. via Freelancers Union Blog https://blog.freelancersunion.org/2020/12/21/what-the-latest-coronavirus-relief-package-does-for-freelancers/
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This article is reproduced with the permission of Backstage.com. To activate your 30-day free trial as a performer, or waive the typical casting fee as a creator, use the custom code FLUCAST19 at checkout here. And for free access to Backstage Crew, sign up here. When it comes to money, we’re constantly hearing the advice “save more!” but what exactly are we saving for? Savings without a purpose can lead to guilty spending, lack of motivation to save, or feelings of deprivation. Savings with a distinct purpose, however, can bring freedom and stability. Sign me up for that one! In addition to our monthly expenses of food and rent, actors tend to have a lot of extraneous expenses in order to stay functioning within this business. I’ve compiled a list of these expenses into six important sinking funds every actor should have and I want to share it with you! But first, what are sinking funds? Sinking funds are multiple small buckets of savings allocated to those expected expenses that don’t necessarily fit into a monthly budget. Unlike an emergency fund that you build up and set aside, sinking funds are used up and refilled on a regular basis. Got it? Good. Now it’s time to talk about the specific categories of sinking funds that can be the most beneficial for you to implement into your savings plan. 1. Membership DuesWhether it’s Actors’ Equity Association, SAG-AFTRA, Backstage, or countless others, we know those dues are coming. The good news is that we can calculate exactly how much we need to save up in that fund every year to be prepared for when we get hit with that email that says: “Ready to renew?” 2. Audition Shoes and ClothesWe can’t do our best work when our feet are uncomfortable. Period. Shoes wear out quicker than you think and it’s a good feeling to be able to replace them before you’ve completely worn through the sole so your pinky toe is touching the floor. The same goes for audition clothes! We all have one or two go-to outfits that make us feel on top of the world, but not so much when they start accumulating holes and pit stains. Even if your clothes aren’t worn out yet, you can still treat yourself to a yearly audition outfit revamp to reinvigorate how you walk into a room! 3. TaxesThe dreaded tax season seems to always catch us off-guard. If you’re working on 1099s, make sure to take out 12–20% yourself, just like a W-2 does automatically. There’s nothing worse than expecting a refund and getting hit with a bill instead! 4. HeadshotsWe all know that headshots are a worthwhile investment. They’re the first thing those casting directors see! But what happens when you get a fierce new haircut you want to flaunt, but can’t afford that amazing new photographer your friend referred you to? It’s easier to make that investment when you already have the money saved and ready to go. 5. ClassesKeeping our instrument sharp is a top priority! So many of us use the money excuse to not get our butts into class. Let’s eliminate that excuse. It’s better to have money already saved up when an awesome class rolls around than trying to scrape the money together two days before the deadline to enroll. 6. Off-Contract BufferWe know breaks between gigs are coming, so why not plan for them? Sometimes you get off a contract to find out your catering survival job doesn’t need you anymore, but you’ve still got rent to pay. This buffer can help offset that in-between time looking for work and minimizes the stress of possible late payments. There you have it! Start brainstorming your own personal list of sinking funds and start contributing to them today (you never know when that heel on your favorite shoe is finally going to give out and snap off). Of course, because personal finance is so personal, everyone’s mix of sinking funds will look different, and that’s OK! The most important thing is that you find a mix that works for YOU. Joyce Cyr (pronounced “Seer”) is a multifaceted and award-winning business woman turned actor, screenwriter, and author. Her many past professions—as founder and vice president of a major manufacturing company, an ordained minister and wedding officiant, realtor, retail store owner, Chamber of Commerce president, on set film and TV crew member—bring an engaging and relatable energy to her storytelling under her Seer One Productions banner, which specializes in digital media and film and television projects. via Freelancers Union Blog https://blog.freelancersunion.org/2020/12/17/6-important-sinking-funds-for-actors/
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It goes without saying that we are living in some strange times. As freelancers, this period has been both challenging and rewarding. Where others have struggled to modify their work environments or transition to remote work, the freelance community is built on evolving circumstances. One aspect of contract work that has drastically changed is the frequency and volume of nontraditional freelancers entering the market. Because of this unprecedented shift, networking and relying on established connections in various industries is pivotal for success. Networking has taken a huge hit. Gone are the days of post-work events with handwritten name badges, coffee meetings, happy hours, etc. While we look forward to their triumphant return, all of that has gone digital. For now, the networking options are floating in cyberspace, ready for us to grab them. Pausing your networking efforts is a nonstarter, especially when you consider that most jobs are filled through networking. These are uncharted waters for many, so here’s how to make the most of it. Get Comfortable with TechAn obvious one, but it’s vital to your networking success. Technology is the only way we can connect and grow our networks these days. LinkedIn was always a nice complement to the in-person networking you were already doing, but now there’s a world of apps, software and platforms to learn for both networking and work. Slack, Zoom, WebEx, Meetily, GoToMeeting, Teams, Google Meet... One of those wasn’t even a real app, but could you tell? The growth of these platforms has been monumental and almost overnight. There’s a lot to keep track of, but the key is getting comfortable with the handful of platforms that work for you. It can be overwhelming, but remember: Everyone is going through the same thing, and people are generally forgiving when it comes to tech. Update and Audit LinkedInLet’s talk about LinkedIn. Get it up to date! Any updates you make to your LinkedIn profile go out to your entire network, opening the door for your current connections to see what you’re up to. LinkedIn is a powerful tool for your networking success. Now is the time to make sure it’s optimized to work best for you. Remember that your profile is a reflection of your personal brand. You’re functioning as your own marketing department and appealing to your audience. The important thing with LinkedIn and all your networking efforts is what’s coming next. Know What You WantWhy are you networking? What’s the goal? What are the connections going to do for you? Both on- and offline, these are all crucial considerations. Without some direction and intention, you’re wasting your time and that of those you’re networking with. When you know what you’re looking for, it makes it easier to find the who to match. Share What You KnowNetworking isn’t a one-way street. It’s not solely about you, you, you. People can sense when they’re being sold and when they’re being used. Networking to only fulfill your needs will cause folks to pull back, limiting further connections. Even if you’re seeking a new job, you still hold an incredible amount of value and knowledge. Lead with that value and see what you can offer others. It can go a long way to building a fruitful network. Set Up Virtual MeetingsThe pandemic has given us all a great excuse to cancel meetings. While understandable, this is the wrong move for a freelancer. The natural inclination we have when we connect with someone in sync with our goals in real life is to keep that connection going, meeting up for coffee or something to that effect. The same logic and principles continue to apply now. Of course, you won’t be able to go out for a coffee, but setting up a digital meeting will certainly help cement that professional connection. Attend Virtual ConferencesConferences are still happening! They’ve just gone virtual, like everything else. The value you can get from them is still immense and they are still very fertile grounds for networking. In some ways, virtual conferences make it even easier, the nervousness of approaching someone is drastically cut down when all it takes is an email or on-platform message. Many of us have a fear of being on camera. Realize that everyone is just as nervous as you are! With dozens of others sharing the screen, a virtual conference serves to mitigate that anxiety. If you’re still scared of the camera, consider this: 95% of people say face-to-face meetings are essential for long-term business relationships. Embrace the New NormalThat phrase may be the bane of your existence at this point, but it bears repeating. The reality is that COVID-19 has thrown much more than a wrench into the system; it has fundamentally changed so much of our lives. Nonetheless, while we wait for things to get back to some sense of normalcy, we have to make the most of our current “normal” because there are still opportunities to grow. Networking is an investment in your future. Not continuing to commit resources to it is only hurting you. In a time when we’re all stuck inside to varying degrees, networking is another way to maintain our mental health as well. Get online and get connected. via Freelancers Union Blog https://blog.freelancersunion.org/2020/12/16/how-to-keep-networking-during-a-pandemic/
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If you’ve been putting off making your health insurance decision this year, it’s time to make the call - the end of open enrollment is officially here. In most states, December 15 is the last day to enroll in a health insurance plan for 2021. But this year, in recognition of the essential nature of adequate health coverage during an ongoing public health crisis, a number of states have extended their deadlines to make it easier for people to opt into health insurance. The extended state deadlines are: California: Enroll by Dec. 30 for coverage beginning Jan. 1; by Jan. 31 for coverage beginning Feb. 1 Colorado: Enroll by Dec. 15 for coverage beginning Jan. 1; by Jan. 15 for coverage beginning Feb. 1 Massachusetts: Enroll by Dec. 23 for coverage beginning Jan. 1; by Jan. 23 for coverage beginning Feb. 1 Minnesota: Enroll by Dec. 22 for coverage beginning Jan. 1 Nevada: Enroll by Dec. 31 for coverage beginning Jan. 1; by Jan. 15 for coverage beginning Feb. 1 New Jersey: Enroll by Dec. 31 for coverage beginning Jan. 1; by Jan. 31 for coverage beginning Feb. 1 New York: Enroll by Dec. 15 for coverage beginning Jan. 1; by Jan. 15 for coverage beginning Feb. 1; by Jan. 31 for coverage beginning March 1 Pennsylvania: Enroll by Dec. 15 for coverage beginning Jan. 1; by Jan. 15 for coverage beginning Feb. 1 Rhode Island: Enroll by Dec. 23 for coverage beginning Jan. 1; by Jan. 23 for coverage beginning Feb. 1 Washington: Enroll by Dec. 15 for coverage beginning Jan. 1; by Jan. 15 for coverage beginning Feb. 1 Washington, DC: Enroll by Dec. 15 for coverage beginning Jan. 1; by Jan. 15 for coverage beginning Feb. 1; by Jan. 31 for coverage beginning March 1 If you miss these deadlines, you will have to wait until the start of the next open enrollment period (Nov. 1, 2021) to purchase health insurance, unless you experience a Qualifying Life Event, such as getting married, losing your health coverage from an employer or COBRA, or moving to a different state. When you make your health insurance purchase through Freelancers Union, we receive a small fee that helps us continue to advocate for freelancers’ rights all year round. The cost to you is exactly the same as purchasing on the state exchange, and the insurer you choose can calculate your eligibility for a tax subsidy or credit when you enroll. Give your purchase a purpose and support your Union. via Freelancers Union Blog https://blog.freelancersunion.org/2020/12/15/new-health-insurance-deadlines-for-2021/
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There’s a new twist on income reporting that freelancers will need to take note of on their 2020 tax return. The IRS has introduced Form 1099-NEC, a separate form from the standard Form 1099-MISC. This new form is one that you as a freelance business owner should receive from any client you did work for totaling $600 or more in 2020, prior to filing your taxes. It will take the place of Form 1099-MISC for this purpose. The difference between Form 1099-MISC and Form 1099-NECAs you are likely familiar, Form 1099-MISC is the form you have, up to this point, received from your clients that states the amount they paid you for reporting on your tax return. As a freelance business owner, you were also responsible for sending out Form 1099-MISC to any subcontractors you use for the same purpose. However, Form 1099-NEC now takes the place of Form 1099-MISC, so don't be surprised when you start receiving these from your 2020 clients! Here’s what freelancers need to know: The new Form 1099-NEC is specifically for reporting independent contractor income, also known as non-employee compensation (NEC). NEC is defined by the IRS as payments to individuals who are not on payroll but who work for a company on a contract basis to complete a project or assignment. These are the payments that were traditionally reported in box 7 of a 1099-MISC form. Now they will be reported on Form 1099-NEC. According to the IRS, your familiar 1099-MISC form will now be used only to report miscellaneous payments of $600 or more to individuals for: · Rents · Prizes and awards · Other income payments (excluding self-employment activities) · Medical and health care payments · Crop insurance proceeds · Cash payments for fish (or other aquatic life) you purchase from anyone engaged in the trade or business of catching fish · Payments to an attorney · Any fishing boat proceeds Both Form 1099-NEC and Form 1099-MISC are due by January 31, 2021. Other key changes that freelancers should be aware of on this year’s tax returnCryptocurrency is under the IRS microscope. The first question on Form 1040 this year is: At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency? If you are freelancer buying, selling, being paid with, or otherwise involved in cryptocurrency, you’ll need to be prepared to report this to the IRS. If you made a monetary charitable contribution, the coronavirus relief bill may give you a tax deduction. Under a provision in the coronavirus relief bill, you may be eligible to reduce your taxable income by up to $300 for any charitable contribution you made by check, cash, or credit card (not hard goods). You must have proper documentation including a receipt from the charitable organization for this purpose. Economic Impact Payments may affect your taxes. While the 2020 Form 1040 is not yet final, Line 30 is labelled for a government recovery rebate credit which correlates with any stimulus payments you may have received. Depending on your situation, you may receive an additional credit if your 2020 tax return has a smaller adjusted gross income amount than the one that was used to calculate the initial stimulus check or if you have additional dependents. Be prepared for changes coming to freelance income reporting on your 2020 tax return. It’s clear from both the introduction of Form 1099-NEC, and the fact that on your 2020 tax return the IRS is also requiring self-employment income to be reported separately from W-2 income, that this is an area of focus for the agency. This, along with the other changes you’ll see on this year’s tax return mean freelancers should pay special attention to ensuring that they report all income and do so correctly, to avoid receiving an audit notice or other inquiry from the IRS. By taking note of these changes and the other changes mentioned above now, you’ll be better prepared to file your taxes early and accurately for 2020, while taking advantage of any new opportunities to reduce your tax obligations through coronavirus related programs. 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 provides tax, accounting and business articles for freelancers on his website, http://www.cpaforfreelancers.com, which also features a blog and a comprehensive freelance tax guide. Please note, due to the high volume of inquiries in regard to COVID-19, Jonathan is not able to respond to individual requests for information at this time. via Freelancers Union Blog https://blog.freelancersunion.org/2020/12/14/a-new-form-1099-is-coming/
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Proofreaders are in optimal positions to expand their income, as the skill set required for proofreading is versatile. There are a number of ways in which proofreaders can diversify into blogging, ebooks, and content creation to boost their income, and leveraging existing clients to grow your work base can be done in a few simple steps. Read on to discover how to take your income to the next level. 1) Leverage Your Current ClientsSo you’ve got proofreading skills and you need to put them to use. Chances are that as a freelancer, you already have some current clients for whom you’re writing on a regular basis. If you’re not the only writer they’re employing, go check out some of the copy you didn’t write for them - most likely while you’re scanning it over you’ll spot something you could improve on. Impress current clients with your attention to detail and meticulous close reading and your copy clients can turn into proofreading clients in an instant. You’ll get more work from the same client, which minimizes admin, too. 2) Always Hit Your DeadlinesIn this industry, it’s startlingly common for freelancers to miss deadlines. Whether people have taken on more work than they can manage or misjudged their turnaround times, clients are used to it. By meeting deadlines, you’ll stand out from the crowd, receive more offers for work, and get more work done in the time frame! Remember, clients are often reluctant to employ proofreaders because they’re inclined to think they’ve already produced a finished product. Proofreading can seem like a luxury to them. In this environment, there’s no sense in making them wait. 3) Make Payment EasyWhile a direct bank transfer might work for you, it’s important to think about what works for your clients. PayPal is widely trusted by clients, and if you offer this as a payment option, some of that trust brushes off onto you. Trust is absolutely integral to the proofreader-client relationship. After all, they’re handing over their work to you and putting faith in your skills to improve the finished article. Making payment easy is about more than just functionality, it’s about building a strong relationship with your clients. 4) Offer Additional ServicesMost clients are used to the standard proofreading service - they’ll get their document back, hopefully within deadline, with a few improvements here and there. What they’re not used to is awesome service that goes above and beyond. Invest a little additional time in communicating what you’ve changed to your client so that the work you’ve done stands out. “By making it clear how you’ve improved their work, the value that you’ve added will be evident and clients will be happy to hand over the cash,” says Elizabeth Henkle, a proofreader at Paperfellows. “I like to include a short document of my own making that runs through common errors and how to fix them - clients will appreciate that you’re reaching out.” 5) Pay Attention to DetailNever take your clients for granted. Give 100% to every project and you’ll build strong relationships with clients that translate to more work for you. Once you’ve finished proofing a piece, tools like Grammarix, Acacdemized and Simplegrad can give the document a final check, ensuring that you’re turning in work of sterling quality each and every time. 6) DiversifyProofreading skills are exceptionally versatile, so if you want to boost your income you can diversify in other ways. If you’ve already built a document about grammar and common mistakes, you could easily expand this with your specialist knowledge into an ebook. “Starting a blog about your proofreading can expand your portfolio and open up new opportunities for more writing and content creation work," says Kelly McDougald, a writer at Stateofwriting. “Keep an open mind about what you can turn your hand to - there are so many opportunities to make money out there.” 7) Solicit TestimonialsAsk every client for a testimonial, even if you aren’t going to use them all immediately. Building up a portfolio of client reports can give you the opportunity to demonstrate social proof to a wide network of potential clients. This will give you the legitimacy that people need to build a working relationship with you. Proofreaders are well placed to leverage their skills and boost their income through a variety of means. Stay open to opportunities, utilize existing client relationships and grow your network. Your freelance career is just getting started. via Freelancers Union Blog https://blog.freelancersunion.org/2020/12/11/7-steps-to-grow-your-proofreading-business/
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Being a freelance writer is a great way to make a living or a side income. When you have consistent clients, you can write and earn money on your own time, as your own boss. What’s not to love about that? However, getting clients isn’t always easy. If you want to get discovered, you need a strong digital presence, much like any other small business. If potential clients can’t find you, you won’t have any work and your dream will evaporate. Don’t let that happen to you. Use these strategies to improve your digital footprint as a freelance writer! Build Your Professional Network“It’s not what you know; it’s who you know.” That’s never been more true. With writers advertising services everywhere, knowing the right people can help you land the high-quality jobs over your competitors. Networking doesn’t have to mean going to cocktail parties and hoping to make a good impression. Today, digital networking is the name of the game. You’ll still want to make a strong impression, but you’ll do so with your social media profiles. It’s important to be selective. Having a consistent presence on a few networks is more effective than occasionally visiting a lot of your favorite social media sites. Focus on professional outlets like LinkedIn, but don’t overlook opportunities on networks like Instagram. Finally, be friendly and focus on service. What can you offer to others, for free, to build your relationship with them? Share helpful articles, comment on their posts, and generally be present. Follow through with what you promise to do, and give sincere thanks when others do you a favor. Having a strong professional network online can help you find out about work, connect with new clients, and receive referrals from other professionals. Build Your Freelance SkillsCreating engaging text is a great start, but what can you do to improve your value as a freelancer? When you have additional skills, you’ll be able to do more for your clients and earn more income as a result. When you take Photoshop and other Adobe classes, for example, you can add design and images to your writing services. InDesign allows you to format your writing into attractive print and digital publications so that readers engage more deeply with the material. This is a big plus for your clients! You’ll also want to work on your project management and organization skills. Keep track of your notes and papers using Evernote or Dropbox or in a physical filing cabinet. The key is to be able to find what you need quickly and easily. Having excellent communication is essential for success as well. Think about how to organize your email, projects, and client communications so that you stay on track, and no details are missed. To keep your financials in order, set up invoicing that makes it easy for clients to pay while you accurately track income and expenses. Create a Marketing PlanYou might be used to thinking about your clients’ marketing plans, but the truth is you need one too. Start with a reliable internet connection so that you can update your social media and answer client inquiries quickly every day. Next, think about who your ideal clients are and how you can regularly put yourself in front of them. Do you prefer to work with marketing firms or individual clients? Are you interested in pitching publications or getting regular work from blogging? Once you’ve set your goals, create a plan that allows you to connect with ideal clients regularly. This might mean messaging companies on LinkedIn, connecting with marketing managers, or building relationships with editors. Work your plan consistently day after day. Many writers make the mistake that once they have a lot of work coming in, they stop reaching out. This leads to a drought in work once the current assignments are complete. Don’t live in a feast-or-famine cycle — keep your marketing consistent! Marketing yourself consistently is the No. 1 thing you can do to increase your digital footprint as a freelance writer. Set Yourself Up for Freelance Writing SuccessIf you want to build your income and portfolio as a freelance writer, you can’t afford to be haphazard in building your brand. Just like your clients need consistent content to engage their audience, you need consistent marketing to stay visible to your ideal clients. Start with building your professional network online. There are so many platforms to choose from, but don’t overwhelm yourself. Instead, select the ones that make the most sense based on where your clients spend time. Next, make sure you’re continually improving your skills. There will always be new competitors, and you want to stand out from the crowd! Finally, you’ll need a marketing plan that you implement consistently. Keep yourself on the radar by continuing your outreach, even when your calendar is full. There’s no reason to stop marketing and run out of work. Being a successful freelance writer isn’t easy, but today’s digital landscape makes it more accessible than it’s ever been. Get started building your online presence today! via Freelancers Union Blog https://blog.freelancersunion.org/2020/12/10/expand-your-writing-business-digital-reach/
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This article is reproduced with the permission of Backstage.com. To activate your 30-day free trial as a performer, or waive the typical casting fee as a creator, use the custom code FLUCAST19 at checkout here. And for free access to Backstage Crew, sign up here. Full transparency, I’ve backspaced about five different intros to this article. If that doesn’t scream “working from home in 2020,” I’m not sure what does. Work-wise, I was one of the fortunate ones (if there’s such a thing) when the pandemic hit. I’ve been a remote writer for years, my routine seemingly on auto-drive. Of course, pandemics don’t like routines. The cluster of external distractions and the endless cycle of bad news has fried my internal writer’s brain into a tizzy at times and, ultimately, forced me to totally retool my work regime. With hopes it may help as you work from home whether you’re a writer or pursuing another artistic pursuit, I’d like to share that routine with you. So as we whirl through the daily rollercoaster of quarantine and beyond, here’s a simple guide that will keep you on the tracks no matter what the loop de loop is as you work remotely. 1. Have a designated workplace. 2. Factor in commute time. 3. Keep office hours. 4. Do not disturb. 5. Take breaks. While remote work sounds like a writer’s dream, remember: we’re fragile creatures, who typically fall in a gray area between observers and agoraphobics. We need structure. So create that however you can and, above all else, be gentle with yourself. Robert Peterpaul is an actor, writer, and the owner of RPP, which aims to assist talent in the entertainment industry in honing their craft. via Freelancers Union Blog https://blog.freelancersunion.org/2020/12/08/work-from-home-tips-for-writers-and-creatives/
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Based on recent IRS guidance, any Payroll Protection Program (PPP) loan forgiveness may have a tax impact on your freelance business. How much this will impact your tax obligations depends on the extent to which you are applying for forgiveness based on overhead and other third party costs, which will not be deductible on your 2020 tax return. If you are planning to apply for PPP loan forgiveness, or you already have and are waiting for a final determination, here’s what you need to know: 1. If you are applying for PPP loan forgiveness based on payroll, rent, or other eligible expenses, they will not be tax deductible (preventing a double dip by taxpayers), and by inference this may increase your taxes. If for example you are applying for a PPP loan forgiveness amount of $10,000 of payroll and $5,000 of rent expenses, that $15,000 cannot be deducted on your 2020 tax return—which increases your tax liability. Other expenses which may also receive the same tax treatment if you calculate them into your PPP loan forgiveness amount include utility costs such as electricity, gas, water, transportation, telephone and internet. and mortgage interest. This is applicable only to contracts that were in place before Feb. 15, 2020. While the formal guidance for most states is still pending, it is likely that they will conform with the Internal Revenue Service code, so you should plan on having a taxable event in this situation at the state level as well. 2. If your PPP forgiveness is based on sole-proprietor or active LLC members profits, you should not consider them to be taxable on your 2020 return. This is because the profits are viewed by the IRS as equivalent to a freelance business owner’s salary, on which they pay income and self-employment taxes. As such this will not have a tax impact for PPP loan forgiveness and are not deductible. Keep in mind that salaries over $100,000 are excluded from forgiveness eligibility. As an example, if you apply for PPP loan forgiveness based on $10,000 profit on Schedule C of your tax return, or the equivalent for partnership returns, this amount will not have a taxable impact on your tax situation because it was not listed as a deductible expense for tax purposes. The IRS provides safe harbor for unforgiven PPP loans. The IRS also recently announced an unforgiven PPP loan safe harbor regulation for the 2020 tax year, allowing freelancers who forego requesting loan forgiveness to claim a deduction for the otherwise deductible eligible payments on an original income tax return or information return. If you believe you are eligible to receive forgiveness on your PPP loan and you plan to apply for forgiveness next year, it is critical that you carefully consider which expenses you are eligible to deduct on your on your 2020 tax return otherwise you could end up with an unplanned tax liability. 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 provides tax, accounting and business articles for freelancers on his website, http://www.cpaforfreelancers.com, which also features a blog and a comprehensive freelance tax guide. Please note, due to the high volume of inquiries in regard to COVID-19, Jonathan is not able to respond to individual requests for information at this time. via Freelancers Union Blog https://blog.freelancersunion.org/2020/12/07/how-ppp-forgiveness-will-affect-your-taxes/ |
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
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