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1.Set the dates for your freelance tax deadlines. To avoid fines, penalties, and last-minute panic it’s key to know when you have tax obligations throughout the year. Here are the federal tax deadlines for 2023 that every tax pro should be aware of. You should also make note of any state or local deadlines you have for estimated or other taxes. January April
October 2. tax due dates on your calendar, you will be ready to start looking at the documents you need to fulfill the filing requirements. This is where the challenge lies for many freelancers. Keeping track of all of your expenses and the supporting documentation (real receipts, not just a credit card statement) can be challenging. However, there’s a whole army of apps you can use to get the job done efficiently. The most important thing is to ensure that you have a system for consistently collecting and tracking your expenses and the taxes that you pay as the year progresses. 3. Select the right apps to automate your freelance expense tracking. There are many apps out there which can help you track your expenses, deductions, and tax payments. This is a short list of some of the most popular apps that can help you make sure that you have the updated info you need. Mint can help you track and categorize your spending. If you use Mint regularly, you can collect all of the data you need for tax filing including itemized deduction categories like medical expenses and charitable gifts. You can link Mint to several financial accounts, making it a convenient way to compile a complete picture of your yearly spending. Best of all you can use Mint for free on your iPhone or Android device, as long as you don’t mind a few ads, although there is also a paid premium version which eliminates those. FileThis is a secure tool that can help you abide by the IRS requirement that you provide actual receipt for any deductions you are claiming for your business. FileThis acts as an electronic filing cabinet where you can upload and categorize bank statements, receipt, and utility bills. You can add up to three years of these items and you can also create bill reminders for tax due to help keep you on track. Another perk of FileThis? You can send items to other accounts such as Dropbox, Google Drive or Evernote. Like Mint, there is a paid and unpaid version. MileIQ is a must for tracking mileage that you want to deduct from your freelance taxes.In order to take the mileage deduction, you will need to track where you drove and when. MileIQ allows you to automate this requirement by sensing when you are driving in a vehicle. The app tracks the route, including start and stop times, destination, and other data required by the IRS for a business mileage deduction. The app is free for up to 40 drives.
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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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