Article by Kristen Pope on The Write Life site:
Freelance writers wear many hats, from being their own stand-alone IT departments to scheduling meetings and interviews, ordering office supplies, designing web pages, invoicing and being their own accounts-receivable departments.
But one category many freelancers feel ill-equipped to tackle is the world of taxes.
Missing deductions is leaving money on the table, and declaring income incorrectly can easily get you into hot water with the IRS.
Rus Garofalo was a writer, performer and video producer when he started working for a tax preparer. He soon realized he and his friends were doing their taxes wrong and losing money as a result. Realizing many freelance creative professionals did not know the intricacies of the tax world, he decided to do something about it. He started Brass Taxes in 2008.
“It made me angry that I had been losing money because I was never told this information and the information is not easy to find online and know that we are doing it right,” Garofalo said. “So I created the business that I wish existed.”
We asked Garofalo, who now specializes in doing freelancers’ taxes, a few questions about just what freelancers should be doing tax-wise. Below are a few take-home points from our conversation.