Being an independent contractor, aka a freelancer, means you are in charge of your own financial destiny. No one else controls your income except yourself. Working for a 1099 may not feel like you're a business owner, but you truly are. You now qualify for business deductions that can be done on the schedule C or C-EZ. You're also responsible for paying quarterly self employment taxes if you make over $10,000 in one year. All of these details turn you into what the IRS considers to be a sole proprietor.
So what should you do with this nugget of information? Own it! Take full advantage of what it means to be responsible only to yourself (or you and your VP's if you have a family). Save all of your receipts for items used in the course of a business. Bought reams of paper and it went towards business work? Deduct it. Buy a new laptop for portability of workplace? Depreciate it. Enjoy the freedoms that are associated with being able to work your own hours. But most of all, take pride in being successful with what you do for a living.
This is my introductory post to my brand-spankin' new blog. I intend in future posts to address issues that affect freelancers and their finances, whether it be taxes or how to maximize your income. I welcome questions and suggestions for posts. Also welcome are questions about bankruptcy as I'm fluent in chapter 7 and knowledgeable about 13. Most of all, I hope to teach all of you how to fish instead of giving you one. :)
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