If you were a savvy freelancer this past tax year, you may be anticipating a tax refund. If you are, congratulations! You deserve brownie points for getting your taxes filed ahead of schedule and for successfully meeting your tax obligations. Now the questions is what should you do with your refund? What you don’t want to do is consider the money that the IRS is returning to you as a windfall or an excuse to blow your budget. Instead, you’ll get more long-term satisfaction and benefit if you use your tax refund to fortify your freelance business in one (or more) of the following ways:
Granted, it’s good to know that you’ll be getting a tax refund rather than having to write a check to the United States Treasury, so enjoy feeling flush for a few minutes, then consider using the strategies above to create a strong financial foundation for you, and your freelance business.
Jonathan Medows is a certified public accountant licensed in New York, New Jersey, Maryland, and Pennsylvania. He is also a recognized expert in taxation for freelancers and the self-employed—often tapped for his expert knowledge and perspective on self-employment taxation by national and regional publications such as The New York Post, BusinessWeek, Forbes taxation blog, WebCPA, CPA Practice Advisor, and others. You can read some of Jonathan’s press coverage here.
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