The Freelancer's Guide to End-of-Year Tax Prep

I started preparing for next year’s taxes in October of this year. By the first week of November, I sent my CPA a prepared document listing my current business income and expenses (aka a “profit and loss statement”) as well as my anticipated income and expenses for the remaining two months of the year.

I also provided my CPA with additional tax-relevant numbers, including:

I closed this document with a list of questions, including:

If you’re a freelancer, side hustler, or gig economy worker, it’s not too late to start thinking about your own taxes—and, as Laura Saunders at The Wall Street Journal reminds us, there are a handful of tax-related tasks that need to be completed before the end of the year.

Saunders also lists some record-keeping tasks that don’t necessarily need to be completed by December 31, but are still good to complete in advance, including:

I’ll leave you with one more freelance tax-related tip, directly from my CPA: if you’ve been thinking about making a business-related purchase, whether it’s a new computer, new furniture for your home office, or tickets to your industry’s big annual conference, get that money spent before December 31.

That way, it counts as a tax deduction for this year—and when you’re a freelancer, every penny you can write off your taxes counts.

Source: Lifehacker.com

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