Taxes?!? F/T & Freelance...

N

nonlinearedits

Member
Hey, a noob to the freelance industry here looking for some direction...

This is the first year I've decided to do freelance work and I have a million write offs... I also have a bunch of untaxed jobs (i assume that's 1099'ed). I also work a normal 9-5 where I'll get a W-2... My question is.. I hate to pay these services to do my taxes, it's something I'd rather learn on my own since It's something I really should know how to do ... I've never done taxes w/ freelance as well as fulltime, is there any software anyone could recommend? I know turbotax and all that jazz, but I want to make sure they're compliant with F/T and Freelance work w/ write offs and such before I drop a bunch of loot on it. I wouldn't mind getting a package deal w/ Quicken or something so I can keep everything organized over the coming year to make it more simple later on...
 
Not familiar with turbo tax, as I have a bookkeeper and accountant who do the majority of work. I can say that it is very likely the software will have what you need. Most importantly, unless you set up a complex organization like a 501c3 or C/S corporation, all revenue will flow through your personal tax return anyway. Thats the way sole propriatorship and LLCs work.

That should make your life easier as you will have your normal w-2/1099 stuff and then you will fill out a Schedule C. All appropriate write offs will be available on either section.

Quickbooks makes business life more organized if you have someone or are willing to follow up with it on a regular basis.


Jason
 
I'd recommend just getting your return done by a tax professional at H&R Block or something. The thing about write-offs is that most people don't write things off correctly. Just because you bought a computer for work doesn't mean you can write it off. In fact, the moment you check a personal facebook on that computer, it is no longer strictly for work and can no longer be written off. That's the way the law works.

So if you write-off things inappropriately, thinking "The IRS will never know...", that can come back to in the form of an audit in the event you get caught. So just be careful with the "tons of write-offs".
 
AwakenedFilms said:
Not familiar with turbo tax, as I have a bookkeeper and accountant who do the majority of work. I can say that it is very likely the software will have what you need. Most importantly, unless you set up a complex organization like a 501c3 or C/S corporation, all revenue will flow through your personal tax return anyway. Thats the way sole propriatorship and LLCs work.

That should make your life easier as you will have your normal w-2/1099 stuff and then you will fill out a Schedule C. All appropriate write offs will be available on either section.

Quickbooks makes business life more organized if you have someone or are willing to follow up with it on a regular basis.


Jason
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Awesome thanks! I don't mind keeping up with something as long as it's worth it, I don't do a whole ton of work either just 2-3 small jobs a month freelance
 
Mattykins said:
I'd recommend just getting your return done by a tax professional at H&R Block or something. The thing about write-offs is that most people don't write things off correctly. Just because you bought a computer for work doesn't mean you can write it off. In fact, the moment you check a personal facebook on that computer, it is no longer strictly for work and can no longer be written off. That's the way the law works.

So if you write-off things inappropriately, thinking "The IRS will never know...", that can come back to in the form of an audit in the event you get caught. So just be careful with the "tons of write-offs".
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Yea I know about the write offs, I just meant I have a ton vs the income I probably spent 500% more on gear than I made working freelance... It's all pretty specific stuff too camera, glidetrack, tripods, lights, digital juice, rigs, bags the only generic stuff I have are gas receipts but they're all dated within timelines of signed invoices from customers
 
I've been using TurboTax to do my taxes for several years. You need to pay extra for the business edition that includes Schedule C. TT will help you with your Schedule C deductions. It will tell you what can be written off completely, what needs to be depreciated and what can use accelerated depreciation. It will also help you deduct expenses like insurance (health, liability, etc), rentals, taxes, the list goes on.

Re: H&R Block-
I think that most of their tax preparers are seasonal workers. Very few are accountants. If you want a person to do your taxes and you're self employed, hire an accountant!
 
got_ink123 said:
It's something I really should know how to do ...
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Really??? We should all understand the +6000 pages to the US tax code and keep up to date with the changes to the tax code that occur every year ? No thanks. I would rather spend my time making money, fishing or kickin' back on the beach.

I hate to pay these services to do my taxes
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I'll gladly pay a CPA to handle my taxes. The money he saves me is greater than his fee. The mere presence of his signature on the return will cut down on the chances that it will get flagged for an audit. If for some reason I do get audited he will be at my side for the audit, the law obligates him to be present.

If you plan on migrating to fulltime freelance the you should consult a CPA up front, ideally a year in advance. A CPA can provide valuable advice that will be beneficial to your financial well being. I'm not a fan of HR block. Find a decent CPA, find out the expense and budget for it accordingling. Consider it an investment in your future.

I also have a bunch of untaxed jobs (i assume that's 1099'ed). I also work a normal 9-5 where I'll get a W-2...
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You should be able to skate by this year because you have been paying taxes on your 9-5 job. If you go full time freelance you will be expected to pay quarterly taxes on the freelance income you earn. If you're late on the quarterly payments the IRS will punish you when April comes around. Good times.
 
I would highly recommend hiring a CPA to help you with it - if you decide after going through a CPA that it's something you'd rather do yourself then so be it - but at least you'd be able to learn from a professional what you're doing. If you're considering dropping money on software, it might be better spent on a good accountant (which is a deductible cost, by the way).

CPAs are worth their weight in gold.
Just my 2 cents.
 
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