Taxes for the Modern American Freelancer
In the USA, working for yourself means being both the employer and the employee. This guide breaks down how to stay compliant with the IRS while keeping more of your hard-earned money.
1. Quarterly Estimated Tax Payments
If you expect to owe more than $1,000 in taxes, the IRS requires quarterly payments. Missing these deadlines can result in penalties that eat into your profits.
2. The Home Office Deduction
If you use a portion of your home exclusively for business, you may be eligible to deduct expenses like mortgage interest, insurance, and utilities. Documentation is key.
3. Self-Employment Tax (SE Tax)
Remember to set aside approximately 15.3% for Social Security and Medicare. Viilyx helps you track your total income so you're never surprised at tax time.