Comments on: Freelancing and Taxes https://www.forbeck.com/2009/03/11/freelancing-and-taxes/ Award-winning & New York Times-bestselling author and game designer Fri, 13 Mar 2009 14:47:16 +0000 hourly 1 https://wordpress.org/?v=7.0 By: Matt Forbeck https://www.forbeck.com/2009/03/11/freelancing-and-taxes/#comment-46368 Fri, 13 Mar 2009 14:47:16 +0000 http://www.forbeck.com/2009/03/11/freelancing-and-taxes/#comment-46368 In reply to Brian Hollenbeck.

You have to pay self-employment tax if you make $400 or more from such activities. If you expect to owe $1,000 or more when your taxes are due, you need to do quarterly estimates. However, if you have a day job, the easiest way to handle this is to ask your employer to increase the regular withholding from your paycheck. As long as you don’t owe more than that $1k (from all you’re doing) at the end of the year, you’re set.

This is another benefit of running an S-corp. I don’t bother with quarterly estimates. However, that also means I don’t have a mechanism to put anything away for the end of the year, and if you’re not careful with that you can end up getting dinged with a huge bill come April 15.

]]> By: Matt Forbeck https://www.forbeck.com/2009/03/11/freelancing-and-taxes/#comment-50802 Fri, 13 Mar 2009 14:47:00 +0000 http://www.forbeck.com/2009/03/11/freelancing-and-taxes/#comment-50802 In reply to Brian Hollenbeck.

You have to pay self-employment tax if you make $400 or more from such activities. If you expect to owe $1,000 or more when your taxes are due, you need to do quarterly estimates. However, if you have a day job, the easiest way to handle this is to ask your employer to increase the regular withholding from your paycheck. As long as you don’t owe more than that $1k (from all you’re doing) at the end of the year, you’re set.

This is another benefit of running an S-corp. I don’t bother with quarterly estimates. However, that also means I don’t have a mechanism to put anything away for the end of the year, and if you’re not careful with that you can end up getting dinged with a huge bill come April 15.

]]> By: Brian Hollenbeck https://www.forbeck.com/2009/03/11/freelancing-and-taxes/#comment-46367 Fri, 13 Mar 2009 14:35:07 +0000 http://www.forbeck.com/2009/03/11/freelancing-and-taxes/#comment-46367 I’ve just started being self-employed, so this is all new and scary to me. Do you know what the minimum is for filing a 1040-ES? I don’t think I’m making enough to worry much about taxes … yet.

]]> By: Brian Hollenbeck https://www.forbeck.com/2009/03/11/freelancing-and-taxes/#comment-50801 Fri, 13 Mar 2009 14:35:00 +0000 http://www.forbeck.com/2009/03/11/freelancing-and-taxes/#comment-50801 I’ve just started being self-employed, so this is all new and scary to me. Do you know what the minimum is for filing a 1040-ES? I don’t think I’m making enough to worry much about taxes … yet.

]]> By: Rob Stone https://www.forbeck.com/2009/03/11/freelancing-and-taxes/#comment-46361 Thu, 12 Mar 2009 17:57:09 +0000 http://www.forbeck.com/2009/03/11/freelancing-and-taxes/#comment-46361 When I first saw the title of your article I thought it said “Freelancing and Texas”. LOL. Good article.

Rob

]]> By: Rob Stone https://www.forbeck.com/2009/03/11/freelancing-and-taxes/#comment-50800 Thu, 12 Mar 2009 17:57:00 +0000 http://www.forbeck.com/2009/03/11/freelancing-and-taxes/#comment-50800 When I first saw the title of your article I thought it said “Freelancing and Texas”. LOL. Good article.

Rob

]]> By: Brett Seymour https://www.forbeck.com/2009/03/11/freelancing-and-taxes/#comment-46360 Thu, 12 Mar 2009 03:19:45 +0000 http://www.forbeck.com/2009/03/11/freelancing-and-taxes/#comment-46360 I would chime in to remind everyone to keep in mind those out of state state taxes…I get dinged for Rhode Island every year…grrr….

]]> By: Brett Seymour https://www.forbeck.com/2009/03/11/freelancing-and-taxes/#comment-50799 Thu, 12 Mar 2009 03:19:00 +0000 http://www.forbeck.com/2009/03/11/freelancing-and-taxes/#comment-50799 I would chime in to remind everyone to keep in mind those out of state state taxes…I get dinged for Rhode Island every year…grrr….

]]> By: Paul S. kemp https://www.forbeck.com/2009/03/11/freelancing-and-taxes/#comment-46356 Wed, 11 Mar 2009 18:02:37 +0000 http://www.forbeck.com/2009/03/11/freelancing-and-taxes/#comment-46356 Hey, that’s news to me. I assumed the S-Corp rules would be the same as those of the LLC (and I think, and I’m out of my element a bit here, that if one is the equivalent of a “limited partner” in the LLC, even though it is not a partnership, then the profits are not subject to Self Employment taxes).

Live and learn. Thanks, Matt.

]]> By: Paul S. kemp https://www.forbeck.com/2009/03/11/freelancing-and-taxes/#comment-50798 Wed, 11 Mar 2009 18:02:00 +0000 http://www.forbeck.com/2009/03/11/freelancing-and-taxes/#comment-50798 Hey, that’s news to me. I assumed the S-Corp rules would be the same as those of the LLC (and I think, and I’m out of my element a bit here, that if one is the equivalent of a “limited partner” in the LLC, even though it is not a partnership, then the profits are not subject to Self Employment taxes).

Live and learn. Thanks, Matt.

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