I do I file taxes on my independent contracting work without getting slammed every year?
I'm an independent contractor and I have another 9-5 job. My 9-5 takes taxes out but not my independent work. I make about $7,500 a year in untaxed income. How do I file taxes without getting slammed every year?
I'm married and we usually file a joint return and get a refund of approximately $5,000-7,000. I would like to continue to receive that refund and not owe anything.
You can make estimated tax payments on your extra income or increase the withholdings from your 9-5 paycheck to help offset it. Also, any business related expenses will reduce your tax liability against that extra income.
Sound tax and accounting procedures are essential to growing a financially secure company. But multiple hiccups threaten the accuracy of these processes, elevating the risk of compliance penalties and reputational harm.