Planning to leave your traditional 40-hour work week behind and join the "gig economy"? You're about to embark on a modern adventure in flexibility and taking command of your own life.
But, it comes with some new challenges. The effect of freelancing on your income taxes, for example, may come as a surprise if you're not prepared. So, here's a short guide to your new tax situation.
The Biggest Differences
With the 2016 season wrapping up, it is time to start thinking about how you are going to save on your taxes for 2017. Here are two steps you can take now to minimize your taxes for 2017 and ensure that you are paying just the right amount.
#1 Increase Your Retirement Contributions
One of the easiest ways to minimize the taxes that you owe and maximize any potential returns is by increasing your retirement contributions.
As your small business grows, you are likely to find yourself in the position of needing a small business accounting software package. These generally user-friendly accounting systems, like QuickBooks Online through places like Blueback Accounting, are easier to understand than ever before and help any entrepreneur understand their true business finances. If you're preparing to fire up your first computerized accounting system, here are the top 5 things you'll need in order to get started.
While hardly anyone actually enjoys doing taxes, it's an even more arduous task when you cross state borders for work and residency. If you're among the millions who have to address complications with state residency, here's a handy guide to how it affects your taxes.
Living and Working in Separate States
If you live near the border between your state and its neighbor, you may end up with a job in one and a home in the other.
Getting through college is an expensive task, and it's important that you start early in order to help fund your child's future education. Many people think that putting money in a savings account is enough, but whilst this helps, there are better ways to maximize your return:
Open a Roth IRA
If you haven't come across them yet, Roth IRA's are basically retirement savings accounts that come with a wide range of tax advantages.