Did you pay your taxes last month? We know filing your taxes is probably not your favorite item on your to-do list, but a necessary one it is! And luckily, you only have to do it once a year!
Our friends at Intuit recently shared with us a survey released by QuickBooks Self-Employed that showed some rather shocking data about self-employed workers (not just from TaskRabbit) across the country. As independent contractors on TaskRabbit, we thought you might be interested in this snapshot from their findings! Please note that TaskRabbit does not condone any of this behavior. Here are some of the most surprising highlights:
According to Intuit, the most common challenge self-employed workers face is correctly filling out the IRS’s tax forms. If you’re working for yourself, it’s easy to get slapped with tax penalties if you’re not careful. It’s true that tax forms can look exceedingly complicated, but we hope this won’t become a reason you ignore them!
It’s important to keep in mind that 33% of self-employed workers have been audited by the IRS. Just under one-third of these had errors on their taxes. This number is even higher for part-time or occasionally self-employed workers. For people in this situation, 50% of those audited had errors—some major!
Many of our Taskers fall into the “part-time” or “occasionally self-employed” category, so if you’re late on this year’s taxes, or already feeling intimidated about next year, here are some tips from QuickBooks:
- Hire an accountant. If you have a complicated web of income sources, an accountant can potentially save you a lot of money by making sure you file correctly and advising you on tax write-offs you might not know about.
- Use computer software. If you choose to file on your own, using a dedicated software like TurboTax will make the process much easier. You’ll be guided through the reporting and filing process—including money-saving deductions—every step of the way!
- Track your income and expenses with accounting software. If you run a small business, you have options. QuickBooks Self Employed is great (and is sometimes free if you file with TurboTax). Stride and Wave are other great options—and free!
- Put money aside for taxes every time you get paid. When you’re working for yourself, it’s easy to forget that nobody is withholding taxes on your behalf. Try putting aside a percentage of each payment you receive. A separate savings account—free with most banks—can help with this!
Taxes don’t have to be scary. By using all the tools out there that are available to you, you can tackle them head-on, avoid complications down the road, and make sure your business and entrepreneurial spirit continue to thrive!