As more Americans seek autonomy from freelancing, often turning side hustles into second or third careers, it’s essential to consider the tax realities when transitioning from a W-2 employee to an independent contractor.
Freelancing offers autonomy, flexibility, and more growth opportunities than the traditional 9 to 5 work model. As a result, 59 million Americans freelanced last year, representing 36% of the workforce.
“Treat bookkeeping and accounting as a weekly habit, not something you do at tax time,” encourages Marina Vaamonde, the owner and founder of HouseCashin, America’s biggest marketplace for selling off-market houses.
No one wants to file their taxes, but staying organized from the start of the year can make your life a lot less stressful at the end of the year, whether you’re paying altogether or paying quarterly taxes.