How to Pay Taxes as a Freelancer

Financial Horizons: Insights for Building Wealth and Securing Your Legacy
“How to Pay Taxes as a Freelancer”
By Dr. Jose G. Cardenas, Chief Tax Strategist at The C & R Group, LLC

Freelancing offers freedom and flexibility—but it also brings the responsibility of managing your own taxes. Without an employer withholding taxes from your paycheck, the burden is on you to stay compliant and proactive. Here’s a breakdown of how freelancers can stay ahead of their tax obligations.

1. Know Your Freelance Business Type

Are you a sole proprietor, part of an LLC, or operating under another structure? The type of freelance business you have will influence how you report income and what forms you use. Understand your classification early on.

2. Calculate Your Gross Income and Net Profit

Start by tracking your total revenue for the year. Subtract any business expenses to determine your net profit. This figure is key—it’s what the IRS uses to calculate your tax liability.

3. Estimate What You Owe

Based on your net profit, calculate how much you owe in self-employment and income taxes. The IRS expects freelancers to estimate and pay these taxes throughout the year—don’t wait until the filing deadline.

4. Pay Quarterly Taxes

Freelancers are typically required to make quarterly estimated payments. These are due in April, June, September, and January. Missing a deadline can lead to penalties, so mark your calendar and stay on track.

5. File an Extension if Needed

Can’t get everything filed by April? No shame in that. You can request a tax extension to buy yourself more time. Just remember—this extends the time to file, not to pay. You’ll still need to estimate and submit your payment by the original due date.

6. Maximize Your Deductions

As a freelancer, you can deduct expenses like home office space, internet, software, travel, and professional services. Every deduction reduces your taxable income, so take advantage of everything legally available to you.

Your Next Step

Don't let tax season catch you off guard. Start organizing your income and expenses today, make those quarterly payments, and lean on expert guidance if needed. Smart tax planning is key to making your freelance career sustainable and profitable.

📅 Book your tax strategy session today:
👉 Book Now

🌐 Visit www.thecrgroupllc.com to learn more.

About the Author
Dr. Jose G. Cardenas is a retired U.S. Army Finance Officer and Chief Tax Strategist at The C & R Group, LLC. With over two decades of financial and tax planning experience, Dr. Cardenas specializes in helping clients build wealth and safeguard their financial legacy.

📌 Disclosure: This article is for educational purposes and does not constitute personalized tax or legal advice. Consult with a qualified tax professional before making decisions.

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