Gig Workers and Taxes
Tax Day is fast approaching
If 2021 was your first year in the gig economy then tax time will be full of surprises for you.
Most likely not very pleasant surprises either
Higher than expected tax liabilities
Even some penalties
Not much fun dealing with all of that.
What to do now?
Get some strong coffee (or your favorite give-me-energy drink)
And start on your paperwork.
Process your paperwork (get help, if necessary).
And file your taxes.
Tax time it’s a stressful time for many.
Now it’s the best time to start thinking, and planning, for next year
Think about how to make it easier on yourself when next tax filing comes around
Here are three things to get you started on the right track:
Keep track of your income.
Make sure to keep good records.
The companies you work with will issue you 1099-NEC and other 1099s
The companies will also send copies of these forms to IRS
Keep track of work-related expenses: car maintenance and repairs, work supplies, etc.
These expenses will help lower your tax bill
Put aside ~20% of your income. Save that money for taxes.
(If necessary, and to avoid penalties, you may want to make estimated payments.)
Develop a system when you se aside time (weekly or monthly ) and do these.
And I promise you:
Consistently doing these 3 things will make tax time much less stressful.
Wishing you success in all you do
Thanks for visiting.
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