Here's how to reduce the amount of tax you owe this year. There is no dress code.
Freelancers do, however, have to pay taxes like everyone else.
Firms also do not have to pay Social Security and Medicare taxes on freelancers as they do on full time employees, nor are health, vacation or retirement benefits paid. Freelancers earn more because they pay for these expenses themselves. When it comes to self-employment taxes, however, there are a few important things a freelancer needs to remember. Hold off on billing clients until the next year . Many small businesses can use the cash method of accounting for tax purposes.