Introduction

As a freelancer, managing your taxes can often feel like navigating a complex maze. With the IRS estimating that nearly 1.5 million people across the country have an outstanding 2019 tax return and are owed a refund, it’s clear that many are missing out on what they’re rightfully owed. The average median refund for tax year 2019 was $893, a significant sum that could make a real difference to your financial situation.

But fear not, fellow freelancers! This comprehensive guide is here to help you understand the ins and outs of the tax system, ensuring you’re not one of those missing out on a potential refund. So, let’s dive in and demystify the world of freelance taxes.

Understanding the 2019 Tax Return

The 2019 tax return is a crucial document for all freelancers. It’s the key to unlocking any potential refunds you may be owed by the IRS. Taxpayers have until July 17, 2023 to file and claim their tax refunds, and those who are freelancers have until October 16, 2023 if they filed an extension. This gives you plenty of time to get your affairs in order and ensure you’re not missing out on any potential refunds.

One important thing to note is that if you are eligible for the Earned Income Tax Credit (EITC), you may lose that if you do not file your 2019 return. The EITC is a valuable tax credit that can significantly reduce your tax bill, so it’s crucial to ensure you file your return in time to claim it.

Getting Help with Your Taxes

Managing your taxes as a freelancer can be a daunting task, but you’re not alone. There are plenty of resources available to help you navigate the tax maze. One such resource is Jonathan Medows, a CPA who offers a free consultation to members of Freelancers Union and a monthly email newsletter covering tax, accounting and business issues. His expertise can be invaluable in helping you understand and manage your tax obligations.

There are also numerous online resources available to help you understand self-employment taxes, including when and how to file your federal tax return and make estimated payments. These resources can be a great starting point for understanding your tax obligations and ensuring you’re not missing out on any potential refunds.