Tax season doesn’t have to mean panic mode.
If you’re an independent contractor or freelancer getting those 1099 forms, we’ve got your back. Everlance was built for moments like this, from tracking miles to keeping your expenses buttoned up. And when it’s time to file, you’ve got two powerful ways to cross the finish line with confidence. Here’s your checklist to keep things simple and stress-free.
Before diving into the nitty-gritty of tax filing, it’s essential to gather all necessary documents. Start by collecting your 1099 forms, which report your income from various clients. Depending on how many clients you have, you might receive multiple 1099s. Make sure to keep these organized, as they will be crucial for your tax return.
Next, don’t forget about your expense records. As a freelancer, you can deduct certain business expenses, which can significantly reduce your taxable income. Keep track of receipts for things like office supplies, travel expenses, and any software subscriptions you use. Having these documents handy will make it easier to claim deductions.
Additionally, consider setting up a dedicated filing system for your tax documents. This could be a physical folder or a digital folder on your computer. By categorizing your documents(such as income, expenses, and receipts) you’ll save time during tax season and reduce the stress of searching for important papers. Moreover, utilizing an app or software, allowing you to track your income and expenses in real-time throughout the year, making tax preparation less daunting. (cough, cough, we know one)
Lastly, consider your previous year’s tax return. This can serve as a helpful reference point. Review it to see what deductions you claimed last year and if there are any changes to your income or expenses this year. This will help you stay on track and ensure you don’t miss any potential savings. Additionally, keep an eye out for any new tax laws or credits that may apply to your situation this year. Tax regulations can change frequently, and being informed about these changes can lead to further deductions or credits that you might not have previously qualified for, ultimately benefiting your financial situation.
Filing 1099 taxes may seem daunting, but breaking it down into manageable steps can make it easier. First, determine your filing status. Most freelancers will file as self-employed, which means you’ll need to fill out a Schedule C form along with your 1040 tax return. This is where you report your income and expenses.
Once you have your forms ready, it’s time to calculate your total income. Add up all the amounts from your 1099 forms and any additional income you earned. Then, subtract your business expenses to determine your net profit. This is the number the IRS will care about: your profit after expenses, and what you’ll pay self-employment taxes on.
Don't forget about estimated taxes! If you expect to owe more than $1,000 in taxes, the IRS requires you to make estimated tax payments throughout the year. This helps avoid penalties and interest for underpayment. Keep track of these payments, as they can also be deducted from your overall tax liability.
Everlance makes the tax filing process more straightforward for freelancers and independent contractors. With its user-friendly interface, you can easily track your income and expenses all year long. This means no more scrambling to find receipts or documents at tax time!
Using the Everlance app, you can categorize your expenses as you go. This not only saves time but also ensures that you don’t miss out on any deductions. The app automatically tracks your mileage, which is an essential deduction for many freelancers. Just remember to log your trips accurately!
When it's time to file, Everlance allows you to generate reports that summarize your income and expenses. You can export these reports directly to your tax software or share them with your accountant. This feature can significantly reduce the time spent on tax prep, giving you more time to focus on your work.
To get your data exports, simply navigate to the reports section of the Everlance app. Here, you can select the date range for the data you need and choose the format you prefer, whether it’s CSV or PDF. This flexibility makes it easy to integrate your financial data with various tax preparation tools.
Having organized data not only makes filing easier but also helps you keep track of your financial health throughout the year. Regularly reviewing your income and expenses can provide insights into your business performance and help you make informed decisions.
Staying on top of tax deadlines is crucial for avoiding penalties. For the 2025 tax year, here are some key dates to remember:
Mark these dates on your calendar to ensure you don’t miss any important deadlines. Missing a deadline can result in penalties and interest, which can add up quickly. Being proactive about your tax prep will save you time and stress in the long run.
In conclusion, preparing for your 1099 taxes doesn’t have to be overwhelming. By following this checklist and utilizing tools like Everlance, you can make the process smoother and more efficient. Remember to stay organized, keep track of your expenses, and meet those deadlines!
Join over 4 million independent workers who are getting more deductions and saving countless hours with the top rated tax tracking app, Everlance
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Brad Thibeau is the Head of Growth & Partnerships at Everlance. Brad has worked at Everlance since 2021 with a focus on helping self employed people save time and money on their taxes.
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