It’s tax time! For some this season brings a sense of joy and for some (read: entrepreneurs) the tax season can be super daunting. Last week I attended a fun breakfast sponsored by Turbo Tax and they shared some awesome tips for Freelancers/Bloggers/Entrepreneurs that I am so excited to share with you today! I learned a TON and since this is my first half year working for myself I was happy to get a crash course and ask all the questions I needed.
7 Easy Tax Tips For Entrepreneurs & Bloggers
- Separate business and personal: When you are self employed it can be super easy to blur the lines of what you spend for business and personal. The panel advised that when you are doing business specific meetings/trips/purchases make sure you keep a log of it separately by either entering the expenses in quickbooks or scanning receipts so you have them ready for tax time.
- Prioritize paying yourselves first: This one was a lightbulb moment for me. The panelists recommended always keeping your business payments in an entirely different account and paying yourself from there. Also instead of looking at your finances from a month to month view, look at it from a 12 month outlook. Figure out what you are expected to earn and work from there.
- Pay Taxes Quarterly: It makes a huge difference breaking the payment up into chunks vs. paying all at once in April.
- Write offs are not “free”: Somehow the word write off has been associated with free, but it’s actually not. You are actually just getting a 30% discount on the items that you purchase.
- Check in monthly: Take the time to have a “Money party” every single month where you do a full check up on your expenses and purchases. You could even make it fun with adult beverages! 🙂 The point of this is to make taking care of your finances monthly not only a fun event but one that you can look forward to and stay consistent with every month.
- Look at “treats” differently: Another way to think about how you use your money is to shift from a focus of treating yourself with things vs. treating yourself by focusing on saving for a rainy day fund or paying off a credit card.
- What to do about 1099s?: When the payment is over $600 or more bloggers/freelancers should get the 1099 in the mail its required by company. Even if you don’t receive one you should claim all money paid out.
Turbo Tax Self Employed
Turbo Tax has got you covered when it comes to handling the daunting task of preparing your taxes. The Turbo Tax Self Employed tool–It’s the first and only integrated tax preparation solution designed for self-employed people and includes these benefits:
- SmartLook: Provides access to live TurboTax experts and CPAs or Enrolled Agents who specialize in self-employment taxes and can offer personalized, real-time answers to your tax questions via one-way video – at no additional cost.
- ExpenseFinder: Finds deductible business expenses you may not know you can claim
- Subscription to QuickBooks Self Employed for year-round expense tracking at no extra cost until the next tax season.
You can check out the tool here!