Freelancers Missing Out On $7.4 Billion In Tax Savings
It’s April 8th, exactly one week till Tax Day. Have you filed your return yet? Hopefully you’ve at least started. If, however, you’re in full-blown procrastination mode and need some prodding, check out our post from last month (“5 Tips for Tax Season: A Freelancer Cheat Sheet”) which may give you the inspiration you need to get started.
If you’re an independent worker, April 15th is probably one of your least favorite days of the year. Nothing kills the buzz of being your own boss more than a hefty bill from Uncle Sam. And, as it turns out, there’s something else that could be cramping your style: leaving a ton of cash on the table.
According to a new report from the U.S. Government Accountability Office, freelancers and other U.S. taxpayers who receive 1099 forms for their work each year are missing out on approximately $7.4. billion in potential tax savings. Why so much you ask?
Untracked expenses. Manual bookkeeping. Crumbled paper receipts. Simply put, sloppy record keeping is costing small businesses and freelancers a small fortune in refunds. Uncle Sam certainly isn’t going to care if you overpay on your taxes, but the thought of paying more than you have to is almost cringeworthy (to me at least). Make sure you’re taking advantage of the top 5 tax deductions that freelancers overlook and check out the tax-related resources provided by our good friends at the Freelancers Union.
Best of luck!