This is the time we are thinking about getting taxes done. It is important to make sure you have everything ready when it comes to getting them done.
If you work for a company you will more than likely get a form of some sort saying how much you have made with them. But it is also important to keep track of what you have made with all of your clients. Depending on what country you live you in, it will determine how much you make on what you are supposed to claim. But in reality you have to claim everything you make, so tracking what you make will come in quite handy for this.
If you work with oDesk, they are recommending you print what you have made for the year and turn that in. That is a great idea and a good way to go about it. It is also a great way to compare what you had and what make sure things match up.
If you don’t work for a company like oDesk, keeping track of your work will be important to do. If you receive payments with PayPal, this is a great way to track your income as well. You can print off the statements for each month and have it to use to compare what you make along with using to help complete the taxes.
It is important to make sure you complete your taxes on time and properly. This means if you don’t know what to do, you get professional help. Make sure you keep a copy of the taxes, regardless if you do them or have someone else do them for you. This will help if you have problems later on down the road with your taxes. Don’t be afraid to ask for professional help. This is a great way to make sure you don’t do something wrong and the taxes are completed correctly.
Don’t forget to keep track of your expenses. This includes anything from part of your internet, your rent/mortgage payments, computer, maintenance of vehicles, buying supplies for your computer or for what you do, etc. But it is important to remember you need to start making a profit after a couple of years or it is going to be seen more as a hobby instead of work.
Asking questions and seeing what others do can really help make sure you have what you need when it comes to your taxes.
There are benefits of working from home while being a stay at home wife and mom. I love getting to have this as an option. It keeps me busy, but I have more control of the schedule and what goes on than working outside the home. I have worked outside the home with one child and will do it if I have to, but I would rather not, if I don’t have to.
Here is how Freelancing and being a stay at home wife and mom works for me and my family:
- I get to make my schedule. I only take on jobs that will work around what is going on with the family. I don’t take jobs where I have to work during certain hours. I work around what the children are doing, when my husband needs my help, what is going on with church and any other activities on the calendar.
- I can pick my workload and my pay rate. I take on what I can handle. I make sure I am getting paid what I am worth and the time I spend working on the project. I may have many contracts going on at one time, but I know when things are due and make sure I meet those deadlines.
- I look for jobs interesting to me and what I want to work on. I decide what I do and what I don’t do.
- It saves my family money. We don’t pay for child care, gas to get to and from work. I just pay for taxes on what I make. The rest is what I can use for the family needs. This allows me the ability to put more money towards the family.
If you are in need of work, whether it is more work to help the finances or just getting back into the workforce, this is a great way to do this. I work with oDesk and another agency. If you need help getting started with either one, just leave a comment and I will be happy to help you with this. Also feel free to ask questions about what I do, what I use to track my work, track my income and expenses and a sample of my goals. You don’t always need to reinvent the wheel, sometimes you just need a way to get started and with some tweaking you are able to make it work for you.
When you are a freelancer, more than likely you will be paying for your taxes at the end of the year. This may seem like a good idea when, but make sure you understand what that really means.
When paying taxes at the end of the year, you can set up payments to pay your taxes off. There will be interest and fees added because you didn’t pay it off all at one time, but if you don’t have the money available to pay the amount, this is one option to go. Another would be to pay quarterly. This is usually by estimating what you will earn. Or if you have a spouse that works and has taxes taken out, have them fix it where they have extra taken out of their check. This will help lessen the blow at the end of the year. You may still have to pay, but it won’t be as much.
It is important that as a freelancer or independent consultant or other title you give yourself, when you work for yourself, taxes are taken out, so it is important to plan so for that. You need to decide which way you want to go about with the taxes.
The only thing you don’t want to do is not pay your taxes.