There are currently over 57 million freelancers in the US today.1 Being self-employed or having a part-time business has plenty of perks. But being your own boss comes with one big downside: tax obligations.
And with the contractor and freelancer economy booming, more and more workers run the risk of underestimating how much they’ll have to pay in taxes by becoming self-employed. If you’re a new contractor, follow these steps to file your taxes and maximize your return.
To kick off your independent contractor tax filing, you’ll need to have all your 1099s from employers you’ve freelanced for during the year. You’ll also need records of your business expenses, including your business mileage if you drive a vehicle for your work. Then it’s time to jump in and get filing.