7 Money-Saving Tax Tips for Freelancers and Remote Workers

  • No Comments

There are many benefits to being a freelancer and working from home, being your own boss is just one to name a few. But one thing that isn’t great about being a freelancer has to deal with your own taxes, upon your own workload. In this article we are going to go over 7 tips to help freelancers when it comes to tax.

Know any expenses that are deductible

First things first, you need to become comfortable with any expenses that may be deductible for you. This could include office furniture, computers, advertising and even software. If it is used for you to perform your work duties then it can be included in your tax deductions.

Save all businesses receipts and organize them

If you want to be a successful freelancer, you have to be good at being organized, or pay someone to be organized for you. Every expenditure that has something to do with your work must be saved and organized accordingly so that when the time comes to pay taxes, everything is ready to go. This makes the process a whole lot easier.

Use all possible resources

There are plenty of both free and paid apps nowadays that can help you with taxes by recording expenditure and by helping you budget. These should be taken advantage of when possible. There are even apps that send you tax updates and reminders, all you have to do is go to your app-store and download the one that best fits your needs and applies the most to the country that you live in.

Use an accountant

If accounts are not your thing, and let’s face it, they are not the thing of many people. Then this must be something that you take into serious consideration. An account knows the ins and outs of taxes and has an incredible amount of knowledge that can be used to save both time and money. More details!

Register as self employed on the social security

Depending on which country you live in, you may want to look into how being a freelance worker affects your right to healthcare. If you live in a country where a welfare state exists then you will want to look into how being a freelancer affects your social security. If you live in a country where there is no welfare state then you may want to invest in a health plan.

Find a retirement plan that suits you

Something else that needs to be taken into account when you are a freelancer is your retirement plan. Once again this goes based upon where you live. It is best to do some investigating here to find out which plan suits your needs best and consult several different options before making your final decision.

Take your time to review everything

When it comes to handling your taxes whilst working a work at home job, it is vital that you take your time to review everything. This holds especially true when it is your first time doing your taxes, even if you are paying someone to do your taxes, revise everything at your own pace so as to not make any easily avoided mistakes.

 

Following the above tips will make paying your taxes easier than they would normally be, and as always. If you are unsure about any part of paying taxes then you should consult with a professional to avoid problems later on down the road. Work at home jobs should apply to you is good at so don’t be afraid to call in a professional if you need help with the accounts. For more details, visit: https://www.investopedia.com/taxes/individual-investor-tax-tips/

About Author