i've just entered my fourth month of being a freelancer and making my living that way. so now i'm wondering ... do i need to file quarterly taxes? any former/current freelancers that read this wanna help a brotha out?
everything i've read about quarterly taxes confuses me profusely. it seems like it's all based on estimated income, which makes me more confused. i mean, how am i supposed to estimate how much i'm going to work, especially since my hours at my current freelance gig vary significantly from week to week, yet never exceed 20 hours? also, i have no idea if i'll be freelancing forever, since i'm always on the lookout for, well, anything, but preferably something that offers health insurance and stability. also, what if i continue freelancing but find another client and start working more?
see? confusing. but considering everything i've read says if you're a freelancer/self-employee, you need to pay quarterly taxes because the IRS doesn't like to be without your money and if you wait till actual filing time they may stack a huge penalty on you.
gah. i'd find an accountant to clear this up for me, but i can barely afford to put food and beer on the table. anyone out there know anything? =(
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Well you are somewhat in luck...I am an accountant, one who despises taxes, but an accountant nonetheless. Here is a quick link http://www.irs.gov/faqs/faq-kw167.html to get forms and what not. The IRS will grant you one non-penalty year for NOT doing quarterly taxes. After that you must then do quarterly taxes. How to estimate your taxes? I found this nifty sheet http://freecontent.janktheproofer.com/SelfEmploymentTaxes.htm. Ultimately I can try and answer some questions and if I can't, I can always ask a friend or two of mine who has worked with taxes more. Hope this helps somewhat!
Shar
thanks for the help, shar! i'm partially just afraid of having to do all this. by myself. it's nice to know i have a good friend that's going to try and help me through it. =)
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