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Remember when we all just guessed our quarterly tax payments?
Back when I first started freelancing in 2018, I'd just look at my bank account in March, June, September, and December, make a wild guess, and send the IRS whatever felt 'safe'. I once sent $2,500 for a quarter where I'd actually made over $8k, and the penalty notice was a nasty shock. Now, I use a simple spreadsheet I update every Friday. I log every single payment from a client, and the sheet automatically sets aside 30% for taxes in a separate savings account. It took me about three hours to set up, but it means I never have that panicked feeling anymore. I just paid my Q1 estimate and it was within $12 of what the sheet predicted. Has anyone else found a simple system that finally made taxes feel less scary?
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parkera221mo ago
That sounds like way too much work for me.
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My first year freelancing, I guessed $500 for a quarter I made nearly four grand. The IRS letter basically laughed at me. Now I just have a checking account for work money and move 25% of every single client payment into a savings account the same day. It takes two minutes. The peace of mind is worth way more than the tiny bit of effort.
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