Freelancers should be most concerned about not falling behind because it’s not a good feeling come tax season when you have a big bill on your hands. If you keep in touch with us quarterly and make those estimated quarterly payments, it’ll lessen the blow at the end of the year while saving you a little bit over penalties and interest. That’s definitely the biggest concern for freelancers because when you’re on a W-2 every time you get paid the taxes are withheld and remitted to the government. When you’re a freelancer, you’re on 1099 which means you’re responsible for making your own payments and you’ve just got to take that responsibility seriously and not fall behind.
If you are a freelancer in New York City make sure you stay on top of your finances by scheduling a free consultation with the NYC freelance accountants at 212 Tax.