From Fast Company, Cayleigh Parrish reports the highlights of a question and answer session with CPA Jonathan Medows about freelancer taxes. She writes:
“1. Save your receipts. You must keep your original or scanned receipts going back up to six years in case of an audit. The IRS will not accept bank statements. Consider keeping your receipts organized in a binder and sorted by date.
2. Report every dollar you make. You are required to report all income, regardless of whether you were given a 1099.
3. You may have to pay estimated taxes. If you are making a profit as a freelancer you are required to pay estimated taxes quarterly. The amount you have to pay is typically based on your income from the previous year…”
Read the full story at 8 Things Freelancers Should Know About Filing Their Taxes