How to File Your Taxes if You're Self-Employed | TurboTax Tutorial 🧾

Описание: We give you the step-by-step rundown on how to file your taxes if you're a freelancer or otherwise self-employed.

⏩ Skip to the good stuff⏩
00:00​ Intro
00:25 Step #1 — Start early
01:15 Step #2 — Tally up your deductions
01:33 Step #3 — Gather your paperwork
01:58 Step #4 — Create an account
02:31 Step #5 — Fill out the required fields
03:06 Step #6 — Review and file your taxes

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VIDEO TRANSCRIPT:

Hey, Jenn here from finder.com.

It’s that time of year again: tax season. While doing your taxes as a freelancer can be the absolute worst, preparation throughout the year and good invoice management can make it less painless.

The easiest way to file is online through a service like TurboTax, but there are a few steps before you sign in.

Title card: Step 1: Start early.

You may need to file your estimated taxes on a quarterly basis if you're going to pay more than $1,000 in taxes for the year.

To find out if that's the case for you, multiply your expected yearly revenue by the self-employment tax rate.

Regardless of if you're paying quarterly taxes, it's typically recommended that you set aside 25 to 30% of all pay earned through self-employment for taxes.

When you're ready to pay your estimated taxes, you'll use Form 1040-ES. Complete the worksheet and either mail in the provided voucher with a check, or pay using the IRS's online portal.

To file your end-of-year taxes, there are a few more steps.

Title card: Step 2: Tally up your deductions.

Business expenses can add up quickly as a contractor, and luckily there are several you can deduct from your taxable income. Make sure you have the yearly total costs for all of the following before you start:

Home office expenses
Work supplies
Utilities
Health insurance premiums
Travel and meal expenses
Car expenses and mileage
Legal and professional services
Fees, dues and subscriptions
Continuing education
And taxes and licenses

Title card: Step 3: Gather your paperwork.

If your pay is $600 or more, you should receive Form 1099-MISC from your client. But you don't necessarily need the form to get started if you have all of your invoices. You’ll need to gather the following information to begin:

Your Social Security number and the numbers of anyone else on your return
A government-issued ID, like a driver's license
Any earned interest on private investment accounts
Your form 1095 and any medical bills
Mortgage interest and property taxes
Education expenses
Retirement contributions
And charitable donation receipts

Title card: Step 4: Create an account.

Now, you can finally hop onto your preferred tax filing software. Make an account if you don't have one already.

When choosing your password, make sure you're picking something as safe as possible — given your taxes are rife with sensitive info. You might even want to consider using an application like LastPass or Dashlane in combination with a cyber security program like Norton.

Title card: Step 5: Fill out all of the required info.

The next part is probably the longest one. It starts with entering your basic personal and contact information like your name, date of birth and ZIP code.

You'll then go through each step of the filing process, one screen at a time. It's time consuming, but generally software asks the same questions as IRS forms in a lot clearer of terms — making what exactly you need to jot down a lot more clear.

Title card: Step 6: Review and file your taxes.

If your estimated tax payments didn't cover everything OR you didn't pay them along the way, you can pay in one of a few ways:

By mail to your regional IRS office using a check.
Online using the IRS's payment portal.

If you can't pay the amount in full, you may be able to pay over time. Check out the IRS's website on payment plans to find out if you qualify and how to set it up.


Once everything is entered, take a good look at it before signing on the digital line. Check every section, make sure totals match up and then seal it with your e-signature.

For more info about filing taxes when you’re self-employed, check out the full article on Finder. You'll get a breakdown of different 1099 types, and how to fill out a portion of the Schedule C by hand.

Hit subscribe to get even more video content about business and personal finances. And while you're there, consider giving this video a thumbs up.

More questions about filing taxes as a contractor? Leave a comment and we’ll get back to you ASAP!