Freelancing Taxes

3 Tax Tips for Freelancers — by Freelancers

Freelance News Freelancer Taxes

With the changes made by the Tax Cuts and Jobs Act not well understood by many Americans, taxes in the United States can be confusing enough for employees. Being a freelancer or independent contractor adds another layer of complication. For example, did you know there are three additional types of retirement accounts available to self-employed individuals that are not accessible to employees? Fortunately, some of our Motley Fool contributors are not only tax experts, but are also freelancers themselves. We asked three of them to share tax tips that all freelancers should know. Image source: Getty Images. Max out your retirement plan Maurie Backman : Saving in a tax-advantaged retirement plan is one of the easiest ways to shield more of your earnings from the IRS. And freelancers really have a nice array of options in this regard. First, you can save in a traditional or Roth IRA . There are no earnings limits associated with the former, but for the latter, you’ll be barred from contributing directly if you make more than $137,000 as a single tax filer, or $203,000 if you’re filing jointly. Now, Roth IRAs have their benefits, but contributions to them are not made with […]

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