Browse Category: freelancer

Self-Employment Statistics

2018 Self-Employment Statistics In The US

Last updated on July 12th, 2018 at 10:27 pm

According to recent federal self-employment statistics nearly 27 million Americans will leave their full-time jobs from 2017-2020, bringing the total number of self-employed individuals to 42,000,000 in the U.S. alone.

Why is this statistic so amazing?

Well, for starters, it means that of an American workforce of just over 126 million full-time workers, a whopping 33% can be considered self-employed. Whether they drive for Uber or Lyft, sell real estate, go into law, or tax preparation – they’re self-employed and in business for themselves.

That’s a lot of people striking out on their own!

So, why do they do it? What compels someone to leave the comfort of their 9-5 to hang up a shingle of their very own and go into business for themselves? Continue Reading

Everlance + TaxAct: Bridging the gap between Freelancers and Tax Pros

Last updated on June 5th, 2018 at 09:00 pm

As the 2018 tax season concludes, we’re excited to report on the progress of a successful partnership with TaxAct Pro Advance we launched for the year.

Filing annual taxes is a painful enough process for ordinary workers, but the process is even more painful for freelancers. Generally speaking, taxes for independent workers (1099) are far more complicated than those of an employee (W2), and keeping track of all of the possible business deductions can seem like a daunting task.

Due to these additional complexities freelancers can really benefit from working with a tax professional. To make it easier for freelancers to work with tax professionals, we launched a partnership with TaxAct, which has been a great partner both to our users and to us as a company.

Continue Reading

Taxes for Self-Employed Individuals

As a self-employed individual, you are responsible for paying taxes on your income. Unlike employees, taxes aren’t automatically taken out of your payments. Instead, you are responsible for setting aside money for your taxes and then paying the IRS.

 

How much will I have to pay?

This depends on many factors, but as a general rule of them, we recommend putting aside at least the following percentages, depending on your income level.

Your Annual Income Your Tax Rate Estimate
< $25K 20-25%
$25K-$50K 30-35%
$50K-$75K 35-40%
$75K-$100K 40-45%
> $100K >45%

 

You can significantly reduce your taxes by claiming business deductions, like mileage and other business expenses. Everlance can track and help you maximize those deductions. Continue Reading

Freelancer Taxes

Freelancer Taxes | Filing, Deductions & Paying Estimated Taxes

Last updated on July 12th, 2018 at 10:42 pm

According to a study commissioned by Upwork in conjunction with the Freelancers Union, in 2017 there are over 57,000,000 freelancers, or “independent workers” in the United States. This number totals around 36% of the working population in America!

The number of freelancers and self-employed individuals is expected to grow to a whopping 50% in just a few short years. Thanks to the new Gig Economy, millions of people that otherwise wouldn’t have gone into business for themselves are suddenly driving for Uber, Lyft, Doordash and more.

It’s an awesome thing to see, but not everyone is prepared for the shift from W2 to 1099 worker and the taxes that come with it!

At Everlance we want to help new freelancers understand the difference and some of the requirements for paying taxes as a freelancer. As always, this post does not constitute tax advice and we urge anyone with specific tax questions to consult a tax professional. Continue Reading