I'm freelancing, how do I pay my taxes?
Freelancers generally find they have a more difficult tax situation than most employees.
Income filing thresholds are essentially just the summation of an individual's standard deduction and exemptions. As a result, a couple of factors have to be determined before you can properly determine whether or not you are below the income thresholds that would prevent you from needing to file a return. These include your filing status, age, and whether or not you are a dependent and or blind.
These tables are published by the IRS in Publication 17 and Publication 501. If your income falls below these amounts, no tax liability would apply as it would all be offset by your standard deduction and exemptions, thus the thresholds. These amounts can change every year along with the standard deduction amounts.
While these thresholds apply and determine if your required to file a tax return, there may be situations where you would want to file, even if you are not obligated to do so:
Withholdings were made from your paycheck and you want to receive your refund
You are eligible for a refundable tax credit
You want to file as a precaution to begin timeline for auditability on statute of limitations
You are a victim of identity theft and want to prevent a return filed with your stolen identity
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