Tax Season Tips for the Remote Assistant
Happy New Year! I hope your 2025 is off to a great start. With tax season just around the corner, I wanted to share some budgeting tips for 1099 employees to help you feel more prepared. Whether you’re new to the remote assistant world or have been doing it for years, these strategies can make managing your finances a little easier.
Save at Least 30% of Your Income for Taxes
As a 1099 employee, you’re in charge of paying your own taxes – including self-employment taxes, federal income taxes, and possibly state and local taxes. A good rule of thumb is to set aside 30% of your income. Keeping this money in a separate account will make sure you’re ready when it’s time to pay taxes and avoid any last-minute stress.
Build and Maintain an Emergency Fund
An emergency fund is key to financial stability as your income can vary from month to month. Try to save enough to cover three to six months of expenses. Storing this money in a high-yield savings account can help it grow while staying accessible for unexpected situations.
Track Your Income and Expenses
Knowing where your money is going is the foundation of good budgeting. Use an app or a simple spreadsheet to track your income and categorize your spending. This will not only help you stay on top of your finances but also make tax time easier by keeping all your deductible expenses organized!
Plan for Quarterly Tax Payments
1099 workers are required to make estimated tax payments four times a year. Be sure to mark these dates on your calendar and use your income tracking to calculate how much you owe. Making these quarterly payments can help you avoid penalties and keep you from facing a big bill at the end of the year.
If you have any questions about budgeting, saving, or preparing for tax season, please feel free to reach out. I’m here to help however I can!
Toria Troxel
Time Wealth Strategies
toria@timewealthstrategies.com
