If you work from a home office, there are plenty of expenses you can deduct from your tax bill to save money. Don’t miss some of the most common.
According to the calendar on the wall, in just four short months, the IRS will be expecting a reporting of your 2018 taxes. Are you ready to file the appropriate forms?
Filing your taxes is certainly a major undertaking that you want to approach withcare to avoid penalties for late payments, underpayment of estimated taxes andinterest charges.
It pays to be the boss
Yes, it pays to be the boss, but you will also pay self-employment tax for the privilege. If you earned more than $400 from your freelance business in 2018, you owe self-employment taxes… and you should be proud! Why? You made the decision to serve others with your intellect, talents, and creativity, and no good deed goes unrewarded.
Get an estimate for how much your self-employment tax will cost with this helpful calculator.
Did you know as a freelancer you are taxed as an employer even if you do not have employees? If you receive a W2 as an employee and you earn income from side gigs, you are double taxed—you pay taxes on your freelance income and taxes on the income you earn as a W2 employee.
Now, if that bit of information is news to you or it sounds confusing, no need to fear, but I’d strongly recommend checking out the Fiverr Workspace integration with Visor. Visor is a tax firm that specializes in preparing tax returns for people like you and me—freelancers, solopreneurs, and others who make their own hours doing what they love. Also included in this group of independent contractors are social-media-preneurs, Uber drivers and Door Dashers dashing through the snow delivering tasty eats to, guess who? Hard-working freelancers.
The benefits of using a tax professional
1. Quarterly tax payments
If you earn income that is not subject to withholding, the IRS requires you to pay an estimated quarterly tax payment, due on April 15, June 15, September 15 and January 15.
However, many tax professionals encourage their clients to set aside a monthly tax payment for ease in handling the tax payment. Making one huge payment when you file your taxes at the end of the year could result in major heartache, to say the least.
2. Not sure how much to pay?
Visor’s tax professionals are skilled at calculating the amount you should set aside for each estimated quarterly payment based on your net income and the government-regulated self-employment tax of 15.3%.
3. Protect yourself from an IRS Audit
If you’ve never been audited by the IRS, you’ve probably heard numerous horror stories from those who have. It can be a highly stressful event even if you’ve been through it before. No worries. Visor’s tax professionals know how to prepare for an IRS audit and how to present your documentation, and they offer free audit protection.
4. More tax deductions
Which operating costs can you deduct on your 2018 tax return? Can you write off a portion of your home office, utilities, advertising, meals, and rent? These are common questions that freelancers often ask and rightfully so.
You could be forfeiting hundreds and possibly thousands in government-approved deductions if you’re ill-advised. Thankfully, Visor excels in many areas of tax law and business deductions are no exception. A Visor tax advisor will make sure you’re taking advantage of all of the tax write-offs available to you as a self-employed individual.
5. Stay on top of new tax laws
Tax laws are always changing and unless you are a tax professional, deciphering the tax language may be more than challenging. This article sheds some clarity on the new IRS pass-through deduction. But to get full clarity on this new law and how it impacts your specific filingstatus, a Visor tax advisor can present the tax law in layman’s terms toeliminate the fog.
With Visor you have a full team of experts at your disposal tomake sure all of the Ts are crossed and every I is dotted.
File your 2018 tax return and relax
Getting started is super easy.
1. Firstly, to receive the deep discount we’ve reserved for Fiverr Workspace from Fiverr members, be sure to sign up for Visor support from your Fiverr Workspace account. If you haven’t created an account, you can do so before starting your tax filing—it’s free.
2. Secondly, once you’re logged in to your Fiverr Workspace from Fiverr account, you can create your Visor account and initiate the tax filing process. This seamless integration allows you to send your income and expenses directly to Visor’s tax professionals.
3. Thirdly, initiate the filing process with Visor and let the experts do the rest.
At the start of the filing, you’ll be asked a few basic questions to establish your identity, then you’ll upload your tax document to start the filing. Your tax advisor will ask you to review your completed return. Once you approve and pay the filing fee, your 2018 taxes will be filed and you can do the happy dance.
Remember, Visor is with you throughout the entire year to answer your questions and advise you on estimated monthly or quarterly payments. And if you’re audited by the IRS, your Visor tax advisor will be right there to offer their expert support and guidance.
This article refers to tax time for hustlers based in the US. Check on dates and regulations for your own country. Note that this is general advice only, and you should always speak to a tax professional for any situation-specific questions.