
If you are a freelancer or considering becoming one, you probably have questions about what kinds of tax deductions you can take.
If you run your business as a sole proprietor, you may need to pay estimated taxes to the IRS throughout the year. People whose income is subject to withholding (i.e., most employees) generally don’t have to pay estimated tax. These payments cover tax liabilities not covered by withholding. If you don’t pay enough tax, either through withholding or by paying estimated taxes, you may be charged a penalty.
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