Does a freelance writer owe taxes on June 15?

June 10th, 2014 → 9:20 am @ Carol

Hi Carol,
I recently began working as a freelance English teacher online. I have scoured the internet to try to understand the form (can’t find Schedule C!), but I’m still confused. I don’t know how to do this and I’m afraid of doing it the wrong way. I need to learn what’s needed because I am hoping to start earning some income as a writer as well.
I think I’m supposed to submit my taxes by June 156.
Thank you for your consideration,
Angela

Angela,

Thank you for contacting me.

The June 15 due date is for making an estimated payment to the IRS and having it count for the 2nd quarter of the year. There is no tax return due with the estimated payment. Use  Form 1040ES and mail in Voucher #2 with a check. Or you can use a new IRS online payment system Direct Pay.

Of course the tricky thing is to know how much to pay for this quarter. It depends on so many things such as how much you earned freelancing, what your expenses were, other income you have and other tax withholdings. As a general rule of thumb many freelancers send in 20-30% of their profit for the quarter.

You will probably find Chapter 13 Income Tax of Business Tips and Taxes for Writers very helpful.

The Schedule C Profit or Loss from Business is found here. You won’t fill it in until the end of the year and then it’s part of your individual tax return, Form 1040.

I hope that helps,

Carol Topp, CPA
Accountant and author of Business Tips and Taxes for Writers
TaxesForWriters.com