Top Income Tax-Deduction Tips for Creators, Social Influencers and Gig Workers The workforce is more diversified than ever, so let's shine a light on the spectrum of allowable deductions.
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The start of every new year inevitably means that tax filings are around the corner. For any accountant and bookkeeper, Q1 is their busiest time of the year because tax season is in high gear. If you're self-employed, you're probably starting to receive those 1099s from your various side hustles, projects and gigs.
According to a survey, 33% of Americans procrastinate in doing their taxes and wait until the last minute. It also found that millennials are the most likely to procrastinate on filing their taxes compared to other generations. Who can blame them? It's a lot of work and generates stress and anxiety for most people.
The IRS notes that self-employed people spend an average of 24 hours preparing their taxes. Aside from the time-suck and the anxiety that tax-prep creates, it's also rife with accounting and tax-filing uncertainties, as well as the onus of knowing what deductions qualify and meeting deadlines to avoid penalties. From our internal studies, 18% of freelancers pay fines for not paying quarterly tax returns.