FlyFin has a built-in income tracker and tax calculator that helps freelancers and business owners keep track of their earnings and calculate independent contractor taxes. If you're self-employed, you've got the full weight of taxes resting squarely on your shoulders.
Unlike employees who split the bill with their employers, you're on the hook for both parts—your share and what your employer would typically cover. Navigating self-employed taxes can feel like tackling a maze compared to regular income taxes.
Once your earnings cross the $400 mark, you're in the freelancer tax zone. The tax rate is 15.3% on your earned 1099 income. This self-employment tax is made up of 12.4% for Social Security and 2.9% for Medicare.
But wait, there's more! If you're hauling in a hefty income as a small business owner, you might face an extra 0.9% Medicare tax on any earnings over $200,000 for single filers or $250,000 for married couples filing jointly. It's a hefty bill to foot, so having a tax expert who knows what they're doing can help you plan ahead and avoid any surprises come tax time.
There's also a quarterly tax estimator that easily totals your owed estimated tax liability. The
estimated tax deadlines for 2024 are:
- Q1: April 15
- Q2: June 17
- Q3: September 16
- Q4: January 15, 2025
Having these tools in the app keeps you on track to file your return by the tax deadline, especially if you’re a small business owner running an LLC or an S Corp, or have multiple clients.
Once the CPAs have checked out your tax situation and deductions, they'll send over a list of documents for you to safely upload. And don’t worry, it'll only have the essentials like 1099 forms and W-2 forms (if you have any).