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Managing taxes

From: Freelancing Fundamentals

Video: Managing taxes

No matter where you are and what you do, you're going to have to pay taxes or at least you're going to have to account for them even if your payment amount is zero. As with so many things, tax laws and practices vary tremendously from place to place. But here are some rules of thumb based on my own experiences. First, you'll have to continue to file personal taxes just you like you did as an employee. However, you'll probably also have to file business taxes based on the company's receipts. That doesn't necessarily mean that you'll end up paying more and in fact you might pay less, but it does mean more paper work.

Managing taxes

No matter where you are and what you do, you're going to have to pay taxes or at least you're going to have to account for them even if your payment amount is zero. As with so many things, tax laws and practices vary tremendously from place to place. But here are some rules of thumb based on my own experiences. First, you'll have to continue to file personal taxes just you like you did as an employee. However, you'll probably also have to file business taxes based on the company's receipts. That doesn't necessarily mean that you'll end up paying more and in fact you might pay less, but it does mean more paper work.

Second, you'll probably have to change how you file and pay your personal taxes. Third, keep track of your business expenses for tax purposes. A lot of them will probably be tax deductible--that is, you won't have to pay taxes on the money you've used for them. Depending on your situation, that can make an enormous difference on your year end tax bill. There are two parts to keeping track of such expenses. First, note that they were for business purposes in your accounting software.

Second, save the receipts in an envelope until you do your taxes. Finally, file and pay your taxes as early as possible. Believe me they will pile up if you don't and this is something that no government is willing to forgive. On that note, I urge you to get professional help for taxes, at least the first time you file them as a freelancer. There are bound to be local peculiarities you didn't consider and you want to get started on the right foot. Having said that, anybody can eventually do their own taxes; it just takes thought, experience, and planning.

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This video is part of

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Freelancing Fundamentals

42 video lessons · 24249 viewers

Tom Geller
Author

 
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  1. 10m 50s
    1. Welcome
      1m 53s
    2. What is freelancing?
      2m 53s
    3. How freelancing and employment differ
      2m 33s
    4. Preparing your mindset
      3m 31s
  2. 9m 24s
    1. Defining career goals
      2m 48s
    2. Sharpening your market focus
      3m 18s
    3. Transitioning to freelancing
      3m 18s
  3. 16m 11s
    1. Preparing your portfolio
      3m 11s
    2. Estimating costs
      3m 10s
    3. Funding your startup
      2m 42s
    4. Establishing your workspace
      3m 35s
    5. Building your professional network
      3m 33s
  4. 8m 51s
    1. Getting licenses, permits, and insurance
      2m 15s
    2. Creating contracts
      4m 23s
    3. Finding professional service vendors
      2m 13s
  5. 12m 54s
    1. Setting prices
      3m 13s
    2. Establishing payment systems
      1m 36s
    3. Invoicing and getting paid
      3m 50s
    4. Keeping the books
      2m 32s
    5. Managing taxes
      1m 43s
  6. 14m 41s
    1. Announcing your availability
      3m 16s
    2. Finding work through agencies
      2m 2s
    3. Onboarding clients
      2m 59s
    4. Avoiding scams
      3m 25s
    5. Choosing assignments
      2m 59s
  7. 11m 27s
    1. Interacting with clients
      2m 11s
    2. Delivering quality work
      2m 28s
    3. Getting referrals and recommendations
      2m 34s
    4. Losing and firing clients
      4m 14s
  8. 10m 48s
    1. Deconstructing big jobs
      3m 34s
    2. Adopting time-management tools
      2m 35s
    3. Creating schedules
      2m 30s
    4. Turning off the clock for "me time"
      2m 9s
  9. 20m 6s
    1. Staying motivated
      3m 3s
    2. Increasing your rates
      2m 52s
    3. Marketing beyond your professional network
      2m 56s
    4. Growing through hires and partnerships
      3m 30s
    5. Building passive income
      3m 48s
    6. Changing focus
      3m 57s
  10. 4m 52s
    1. Case study: Publishing a book
      2m 47s
    2. Next steps
      2m 5s
  11. 12m 42s
    1. Freelancing Q&A
      12m 42s

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