How to pay taxes as a freelancer

A- 2:56

Congratulations! You’ve freed yourself from overbearing bosses and hygienically challenged co-workers—you’re freelancing! But with freedom comes responsibility, like keeping on top of your taxes.

You Will Need

* Savings account
* Estimated tax vouchers from the IRS
* A spreadsheet program for your computer
* High-interest savings account (optional)
* An accountant (optional)

The amount of tax you’ll pay depends on your income. If you’re pulling in middle-class money, 30% to 35% of your gross income is about right. Open a high-interest savings account. If you’re diligent about putting money away for your taxes, you’ll earn some interest on it before it has to go to Uncle Sam. To make sure your payments are correctly attributed to you, write your social security number on the memo line of any checks you mail to the IRS. If you can’t afford a full-time accountant, at least talk to a local accredited tax professional. Tax laws can vary by state and even by city, so make sure you’ve got the right information for your locale.