St. Patrick's Day has come and gone, which means the next milestone on your calendar is probably much less festive. April 15 is Tax Day, and for the legions of graphic designers who work freelance, it can often lead to plenty of head-scratching and a rather hefty bill. If you consistently work contract jobs that pay $600 or more, then you (and the IRS) should have received 1099-MISC forms from your clients. Often, freelancers pay estimated taxes once a quarter based on these forms, but given how much a freelancer's income can fluctuate, it's anyone's guess what the final tally will be next month.
"The most important thing you need to do as an independent contractor is to sock away cash," the online resource Daily Finance suggests. "Not only do you need to pay lump-sum quarterly taxes, but you need to have a bigger emergency fund than someone who receives a paycheck every two weeks."
In addition to this rule of thumb, consider reaching out to a tax preparation specialists or seeking out workshops on tax guidelines for freelancers. HOWDesign is currently offering a seminar geared toward creative professionals. It covers topics such as bookkeeping and relevant deductions that freelance designers may be eligible for.
Working freelance can be liberating, but it is not without its complications. From balancing your accounts to effectively managing your time, you may have to contend with challenges that in-house professionals simply don't. You have enough on your plate between balancing different clients, finding new projects and trying to maintain some semblance of a social life. At Reich Paper, we want to help by making sure you have the perfect paper stock to wow current clients and make your portfolio truly shine. Browse our selection of printing paper today.