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Essential Tax Tips and Resources for Creative Freelance Professionals

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Contributor: Mary Shannon

While creative freelancing comes with many wonderful benefits, the job also entails several unique responsibilities that you just don't have to think about when you work for an employer. This is all too clear when tax season rolls around. Freelancers, regardless of their industry, assume all of the responsibility for record-keeping, reporting, claiming benefits, and paying the correct amount of taxes. Since self-employment taxes can get very complicated, especially if you have multiple streams of income, here is a guide to help you out!

How to Make Tax Time Easier

There are a couple of key things you can do now to make your life a lot easier when taxes come due next year.

● If you work as a freelancer, consider forming an LLC to establish your business as a separate legal entity. Formation services can help you get started.

● Keep your business and personal finances separate.

● Maintain clear and accurate financial records throughout the tax year.

Paying Taxes on Self-Employment Income

Make sure you clearly understand your tax obligations so you can avoid fines and penalties for missing important details.