Summary List Placement
Tax season is easily my least favorite time of the year. I’m in my mid-20s, so I’m fairly new to filing my taxes. But it is a process that I have come to dread.
Personally, the idea of messing up a tax form has always been the stuff of nightmares for me. So when I missed a deadline on my tax filing last year, my discomfort with tax time was pushed to the next level.
Different deadlines for different filings
When I filed my taxes for the first time, I was a fresh college graduate. I had just started my first “real” job, and my W-2 income was fairly simple to deal with in terms of tax filing. I was nervous about the process, but I was able to sort everything out.
Last year, though, things changed. I started my own business as a freelance writer and chose to set up my business as an LLC that’s taxed as an S corporation. I made this decision based on careful research and advice from someone I trust.
Once I set up the business, I knew that I needed to be diligent about tracking my income. Taxes need to be paid on all kinds of income. So I knew that I’d be on the hook for a tax bill for my business.
Throughout the year, I carefully documented all of my freelance income and kept track of my minimal business expenses. Although my business runs with very low overhead, there were still some expenses to consider, like a new computer and reliable internet.
At the end of the year, I collected 1099s from my clients. Since I now had to file taxes for my business in addition to my personal taxes, I decided to work with a tax professional. Unfortunately, …read more
Source:: Business Insider