Monday, January 12, 2009

Tips for Successful Freelancing #12: Tax Season

Many people will tell you to wait until the last possible moment to file your taxes so that you can hold onto your money as long as possible. Me? I like to get them done and out of the way as soon as possible so I don't have to worry about them and I don't have to shit bricks come April.

I have received requests for tax software recommendations. I personally use H&R Block: TaxCut, on recommendation from a friend. I have used it for two years without incident, and find it to be relatively painless to use. The version I use, Basic+State (I need the State because I live in California,) costs me around $37, but considering I only need it once a year, this suits me just fine. It is user-friendly, can be used from year to year (provided you remember your password or have the foresight to write it down) and makes e-filing a snap.

Remember that as a freelancer, you are considered self-employed. As such, you can write off a bunch more on your taxes in the form of business expenses. Take a look here for a good list of Deductions and Credits you may be able to claim this year. The TaxCut software I use is also able to determine the appropriate deductions and credits; doesn't get much easier.

http://taxes.about.com/od/deductionscredits/Deductions_Credits.htm

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