The new tax-filing solution from TaxAct gives freelancers and the self-employed new tools to better manage their taxes and maximize deductions.
TaxAct for Freelancers
The custom-built e-filing solution has been improved to optimize and simplify the process of filing taxes for freelancers, the self-employed and independent contractors. It includes a new Deduction Maximizer, Self-Employment Tax Calculator and other updates.
Freelancers, the self-employed and independent contractors are increasingly making up a larger percentage of the workforce. According to a report jointly commissioned by Upwork and Freelancers Union, by 2027 most workers in the US will be freelancers. And for most of these small businesses, dealing with the complicated tax system year round is not their strong suit.
Jenna Ivanoski, Gig Economy Product Manager for TaxAct, said the goal of the new updates is to make it easier for this group to manage their finances. In a press release, Ivanoski explained, “We want to help freelancers and other members of the gig economy every step of the way to ensure they can file their taxes quickly, cost-effectively and without confusion.
The New Tools
The Deduction Maximizer looks at how freelancers work and helps them find deductions that are relevant to their particular industry. Writers, bloggers, graphic designers, actors, sales representatives, marketing or business consultants all have different tools of the trade. If you don’t know what to deduct, you are missing on opportunities to lower your tax bill at the end of the year.
The Self-Employment Tax Calculator helps workers in the gig economy understand the tax-related impact of working for themselves. There is also a step-by-step interview for taxpayers receiving Form 1099-MISC, who may also need to file Schedule C and/or Schedule E.
Additionally, TaxAct is offering resources to educate its customers on tax tips, the tax-filing process and more with videos and blogs.
You can get TaxAct for Freelancers for $39, with an additional $37 for specific resources from your state.
A TaxAct Premium service is also available for $51 including help filling out even the more complicated retuns.
Taxes and Freelancers
When you set out to work for yourself, the tax system may seem a bit daunting. But with the right tools and technology, you will be able to make the most of your working situation. As Ivanoski explains, TaxAct will help you, “With the information, they need to maximize their deductions and improve their overall financial situation, not just at tax time, but all year long.”