Part one: Freelance jobs and tax qualifications from A to Z
When it comes to freelancing, there can be as many classifications as there are deadlines to juggle. Know which type you are so tax season isn't the hardest project you complete this year.
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Making up 36 percent of the U.S. workforce and accounting for 57 million people, freelancers are stepping out of the traditional 9-to-5 cubicle.
If you’re part of this growing workforce, it’s important to know what formal category you fall into, and what boxes to check, once tax season rolls around. We’ll explore these categories throughout this video series. Let’s get started.
There are traditional freelancers, or independent contractors, who opt to work for multiple employers at a time with a project-to-project workflow. And there are temporary workers, who often work exclusively with one employer for a limited time. These types of freelancers may have to cover self-employment tax. And if your net earnings are more than $400, you’ll have to also cover income tax.
There are also freelance business owners, who may run their own operation, such as a boutique design studio or small-scale marketing agency. Like other freelancers, they also may have to pay self-employment taxes.
With your tax knowledge in hand, you’ll be ready to start preparing for tax season like a pro.
Check out the next video for more on moonlighters and diversified workers, or explore tax-related content within the Wells Fargo Works website.