What are “Self-Employment Taxes”?
Self-employment taxes are owed on any money that you make as a freelancer. When you have a job with an employer, your employer takes care of these taxes in the form of the Social Security, FICA and Medicare taxes. Since these taxes aren’t paid by your clients, you’ll be responsible for paying them out of your income. It’s important to understand that the money you earn as a freelancer isn’t yours free and clear. A portion of that money must be set aside for tax payments. If you don’t make a regular habit out of saving part of your income, you’ll be in for a big surprise when tax time comes around. If you aren’t comfortable with handling your self-employment taxes yourself, you may want to talk with a qualified tax professional. Speaking an accountant will help you understand the process of paying self employment taxes and handling estimated tax payments. Look for small business tax workshops in your area that you can attend to get information about doing your own taxes. You can also fi
