Tax season is upon us.
As much as you might cringe at the thought of it, there is no avoiding paying your taxes.
Although the last day to pay your taxes is still 3 months away, it’s always a good idea to start preparing as early as possible and Creative Live has a fantastic article to help you do just that.
“Gather royalties and other income: Just in case your lack of a boss hasn’t made it clear, freelancers are not employees. Nobody takes the taxes out of your paychecks and it’s up to you to report your income to the IRS. All of it. When you earn $600 or more from any business or individual, you will be issued a 1099 MISC form, which reports how much they paid you for the year.
That’s Step One in figuring out how much you made for the year. If you earned less than $600 from any business or individual, you won’t receive a 1099, but you are still legally mandated to report that income to the IRS. So, it behooves you to keep track of your income in whatever way works best for you.
Old fashioned ledger, online software such as Quickbooks or app-based tracking like Mint, or straightforward Excel spreadsheet. If money entered your hands, (yep, you have to report cold cash, too) your bank, or third party payment accounts like Paypal and Square, it’s on you to report.”
See the entire article at Creative Live.