Browse Category: Taxes

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.

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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

Unreimbursed Employee Mileage Tax Law Changes

New Tax Law Could Impact Employee Mileage Reimbursement Policies

Last updated on July 12th, 2018 at 10:29 pm

Tax Cuts & Jobs ActWith the new Tax Cuts & Jobs Act in effect for 2018 employees will no longer be allowed to deduct unreimbursed employee business expenses.

So, what does this mean and how does it impact employees going forward? We’ll explain.

Outside of minimum wage laws, there is no federal law requiring employers to reimburse employees that use their personal vehicle for business purposes, though most employers have opted to reimburse for these expenses.

If in the past, as a W2 employee, you may have been required to travel offsite to attend an event such as a sales meeting or a convention. If you had opted to use your own vehicle to travel to-and-from the event, you could reasonably expect that your employer would reimburse your mileage if a reimbursement policy was in place at your company, or worst case, you could write off the expense at years end at the current IRS standard mileage rate of $0.545 per mile.

As of 2018 these unreimbursed expenses are no longer possible. Continue Reading

The Best Tax Software Coupons

Tax Hacks: 2018 Tax Preparation Software Deals, Coupons, Codes & Discounts

Last updated on July 12th, 2018 at 10:31 pm

IRS tax returns are due in only a few days and this means that it’s crunch time! If you haven’t done your taxes this year, don’t despair, the last week before taxes are due is often the best time to save money on tax software.

We’ve rounded up all of the deals going on right now in 2018 from the major tax software companies such as TurboTax, TaxAct, H&R Block & more. Continue Reading