1099 Employees And What They Need To Know
In the past, 1099 employees and freelancers had few legal rights and protections. But recently, especially ever since the pandemic, more and more employers have started using this employment model to avoid paying costly benefits like health insurance and retirement benefits- a trend that's been met with some pushback from the freelancing community. However, as a freelancer, you are self-employed and entitled to many of the same rights as employees. In some cases, the benefits you’re eligible f
A Complete Guide On Tax Deduction for Startup Businesses
Being your own boss and earning a living by doing what you love is a dream that most people aspire to accomplish. So, starting your own business is bound to be an exciting new journey. However, the costs associated with going out on your own can prove to be a hurdle. Lucky for you, the Internal Revenue Service (IRS) cuts business owners a bit of a break when it comes to taxes. Here, we have attempted to sum up some of the top business startup costs tax deduction you can claim for your start-u
When are 1099s due?
There's a lot of talk about 1099s in the news lately, but it may be hard to keep track of when exactly they're due and what you should do with them. With that in mind, here's a quick breakdown of some key information related to 1099 taxes [https://flyfin.tax/1099-tax-calculator]for the year 2022. Who has to file 1099 taxes? According to Uncle Sam, any self-employed individual who works as an independent contractor or a freelancer is considered a 1099 employee [https://flyfin.tax/1099-freelance
Does My Vehicle Qualify for Section 179 Deduction?
Buying a car is a huge expense. Good part? Section 179 of the IRS allows you to deduct the cost of certain types of property on your income taxes
How do I Calculate My Self-Employment Tax?
Being self-employed is a dream for many. Being your own boss and setting your own hours are serious perks. But, they come at the cost of responsibilities, including taxes that can be complicated. As a self-employed individual, you are required to pay the regular income tax as well as the self-employment tax. What is the self-employment tax? It is made up of Medicare and Social Security taxes. It takes the place of the Medicare and Social Security taxes that are directly withheld from the pay
How Do I Avoid Paying Taxes as a Freelancer or Self-Employed Individual?
Being self-employed has its perks, like being your own boss and setting up your own work hours. But this freedom comes with a lot of responsibility and taxes that can be complicated. As a self-employed individual, you'll have to pay your own income and self-employment taxes, whereas people employed by a company have these automatically deducted from their paychecks. Thankfully, there are ways you can lower the amount of self-employment taxes you pay, even down to $0 in some cases. What is
How Do Freelancers Pay Less Taxes?
If you are working as your own boss, you get some incredible advantages with the freelance lifestyle. You can set your working hours, work from the comfort of your home and have the ability to choose your clients. All in all, the freelancer lifestyle truly lives up to its name. But, with this freedom comes new responsibilities. Typically, when you work for an employer, there are certain things that they take care of for you. If you're self-employed, all the responsibilities are up to you.
Tax Deductions For Social Media Influencers: Do Influencers Pay Income Tax?
Social media has now become a constant part of our lives. During a recent survey, it was found that there are more than 3 billion social media users; that’s slightly more than one in three people on the planet! Businesses of every size in every field use influencers (someone with the ability to persuade potential buyers because of their status, knowledge, etc.) to market their products and services. How Social Media Influencers Actually Get Paid Sponsored posts and blogs This is one of the m
The Ultimate Guide On How to Keep Track of Crypto for Taxes in 2022
Cryptocurrency is viewed as property by the IRS, there are two potential taxes that apply to it- Income Tax or Capital Gains Tax. To determine the tax you'll pay generally depends on the type of transactions you're making with your crypto.
What Is a Tax Write-Off? How Does it Work for Business?
f you are new to freelancing, then tax write-offs are your new best friend. Most self-employed folks, freelancers, gig workers, and small business owners, are aware of the benefits of these tax deductions.
Everything You Need to Know About Tax Deduction on Health Insurance For Freelancers
The health insurance deduction for self-employed is highly beneficial especially if you consider the rising cost of health insurance.
What Travel Expenses are Tax Deductible for Self-employed or Freelancers?
When you’re self-employed, you’re bound to be on the lookout for ways to reduce your taxes. The good news is that you can deduct quite a few expenses while traveling, such as transportation, meals, lodging from your taxes.
Top 15 Tax Deductible Expenses for Freelance Writers or Self-Published Authors in the USA
Writers excel at storytelling, but you can't take creative liberty when it comes to taxes. As a self-employed writer, you need to file both state and federal taxes, as well as 1099 forms.
Tax Deduction For Social Media Influencers: Do Influencers Pay Income Tax?
The IRS views social media influencers as self-employed individuals and thus they are required to file form 1099 and form 1040es. To calculate your tax, you need to consider a few things: your expected adjusted gross income, taxable income, taxes, deductions, and credits for the year.
Home office tax deduction for artists
Artists excel with imagination, but you can't take creative liberty when it comes to taxes. However, as a freelance artist, there are several tax deductions that you can claim out of which the home office deduction remains as one of the most valuable deductions available to freelancers.
Does home office deduction lead to an audit risk?
The home office tax deduction is a legitimate business expense that qualifying homeowners and renters should not ignore. However, a lot of taxpayers fear that the deduction isn’t worth the risk since it could trigger an IRS audit.
How can FlyFin help me with my quarterly taxes?
New to FlyFin and wondering how it handles your Self-employment taxes? Flyfin’s Quarterly Tax Calculator is powered by A.I. and backed by CPAs. The A.I. scans through all your expenses and provides you with the most accurate quarterly tax amount all the while helping you maximize your savings.
Why Should I Make Estimated Tax Payments?
A lot of people envy the freedom of freelancing, but not the taxes involved with it! If you’re self-employed, an independent contractor, or have substantial non-wage income, then you'll need to make estimated tax payments to the IRS to avoid penalties and interest. Because freelancers don’t have employers to withhold their taxes, they have to make quarterly tax payments. These taxes are used to pay: * Federal Income tax * State income tax * Self-employment taxes * Social security * Medica
How To Deduct Education Expenses?
If you’re self-employed and decide to further your education to benefit your business, you can write off your education expenses. To be eligible to claim the education expenses tax deduction [https://flyfin.tax/blog/how-to-deduct-education-expenses], you must prove that the education: * Maintains or improves skills required in your trade or business * It is required by law or regulations, for keeping your license to practice, or job. In other words, If you undergo a course or take classe
Introduction to quarterly taxes for artists
Artists excel with imagination, but you can't take creative liberty when it comes to taxes. As a DJ, Etsy seller, or freelance designer, you need to file both state and federal taxes, as well as 1099 forms. Generally, artists file a “Schedule C” as part of their regular 1040 income tax form, which is where they report their art income and expenses. They may file a form 8829 for the home office (studio) deduction and which will also require them to pay self-employment tax (Schedule SE) on their
Is Paying Quarterly Taxes Mandatory?
The tax system in the US works on a pay-as-you-go basis, so the IRS collects income taxes throughout the year via payroll taxes. Ideally, when you file your tax return, you have already paid all of your taxes by the April deadline. Most people overpay their taxes [https://www.xero.com/content/dam/xero/pdf/TaxTouch-Report.pdf], which is why they get a tax refund from the IRS. If you underpay, you will face a penalty when you file your return. As a freelancer, you don’t have an employer to withho
Can travel bloggers write off exotic vacations and fancy meals?
The life of a travel blogger is often envied by most people. As a viewer, it seems like travel bloggers live the ideal life where they can write off exotic vacations and fancy meals, however, the reality is a lot different. Blogging as a profession is something of a gray zone when it comes to taxes. The IRS has very specific guidelines determining the difference between a hobby and a business: * Your business must be profitable. If you go three years in a row without turning a profit on
Let's talk about deductions
Being self-employed has a lot of perks- you get to choose and make your own decisions, you choose your working hours, and you get to follow your passion. So, if you’re thinking about becoming a self-employed worker in the US, it is advantageous to have an overview of trends, and statistics about self-employment. According to the most recent US Bureau of Labor Statistics (BLS) reports, there are over 9 million self-employed workers in the US. With the rise in self-employment, many taxpayers are
Top 15 tax deductions and benefits for the self-employed
As a self-employed business owner, you have probably pondered about ways to reduce your self-employment taxes. Most freelancers struggle with their taxes because every industry and career involves a different set of deductions. Unfortunately, the IRS doesn’t exactly provide a list of small-business tax deductions for every profession. However, it provides self-employed individuals with the ability to seek deductions on anything which is considered “ordinary and necessary” to run your business.
Are work-related devices a tax write-off?
Over the years our reliance on technology has increased exponentially, especially related to conducting business. During the 2019 tax reforms, it was proposed that salaried (W-2) employees can no longer claim job-related deductions. However, this rule does not apply to self-employed workers. If you are self-employed, there are several work-related devices you can claim as a tax write-off. Mobile/Cell phone If you own a cell phone and use it exclusively for business purposes, the cost of the ph
Are business networking apps tax deductible?
Making your name as a self-employed individual comes with several challenges, one of which includes building a network of people around you. While meeting new people can be difficult, it can be extremely beneficial to your business. Whether you decide to build your network through a digital platform or by going to in-person meetings, check out the following article to learn how to expand your network. Video conferencing Video conferencing software is essential in today’s work environment, and
Tax tips for direct sellers
Working as an independent consultant or direct seller has become immensely popular in recent years. The IRS categorizes direct sellers as one of the following: * An individual who sells consumer products at home or a place of business other than a permanent retail establishment * An individual who sells consumer products on a deposit or commission basis * An individual who delivers and/or distributes newspapers or shopping guides Direct sellers have a few things in common. Their income i
Is working from home tax deductible?
The year 2020 witnessed an explosive number of individuals working remotely because of the COVID-19 pandemic. However, most self-employed individuals have long since operated their businesses from the comfort of their homes. According to the U.S. Census Bureau and the Bureau of Labor Statistics, over 4.7 million people, which makes about 3.4% of the US workforce, were already working remotely before the pandemic. So, if you are self-employed and primarily work from home, you can apply for a de
Calculation over estimation, and why is it important?
As a freelancer, it is important to stay organized and to keep a track of all your expenses. However, most freelancers do not take deductions into account which often leads to overpayment. To learn about these deductions, read the article.
What's the deal with quarterly estimated taxes?
Taxes for freelancers are excruciatingly taxing, unlike the W2-employees who have their taxes withheld when they get paid. Thus, freelancers have to make estimated tax payments (1040-ES) on a quarterly basis. Read to know more.
Child Tax Credit 2022: Understanding the Requirements & Benefits
The impact of the Covid-19 pandemic has affected both parents and children. Millions of Americans had to choose between parenting and a paycheck. During the pandemic, many children under the age of 18 lived below the poverty line. In order to combat this, the 2021 Child Tax Credit reform was expanded. This means parents received an enhanced credit, even if they failed to pay their 2019 and 2020 taxes. The American Rescue Plan Act expanded the Child Tax Credit as a part of the stimulus package w