#freelancing

2 articles

Pay Exactly 100% of Last Year's Tax Bill in Four Installments and the IRS Underpayment Penalty Can't Touch You

The safe harbor rule means you don't have to accurately estimate this year's tax at all — just match a defined floor based on last year's numbers, and the penalty doesn't apply no matter what you actually owe in April.

$80,000 of Freelance Income Owes About $11,300 in Self-Employment Tax — Before Any Income Tax at All

W-2 employees never see the employer half of FICA tax; it's withheld before the paycheck prints. 1099 workers owe both halves themselves, and it routinely blindsides first-year freelancers.