b&b189 Gina Noy explains the new tax plan, and how taxes are different if you’re a freelancer

It’s ‘easy’ to leave taxes for the end of the year (or the beginning of next year) but as a freelancer it may leave you scrambling for funds you already used. Gina Noy, CPA and founder of Noy Taxes, advises that you pay monthly to avoid end of the year nightmares for yourself and your accountant. If your taxes are simple, you don’t need an accountant, but when you start making itemized lists from freelancing work, it’s time to see one who knows your field. Gina Noy has more than 15 years of tax experience, specializing in individual, partnership and corporate taxation. She loves taxes so you don’t have to. Find her at noytax.com

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Music featured in this episode:

Black Tax by Larkin vs Larkin
Financial Freedom by Kid Seldom
TURBO TAX RAP by Nasty Millionaire

Image by stevepb

Highlights:

Gina Noy: The last sweeping change was in 1986 and it took Congress 18 months, give or take, to flush out all of the details. This administration, I wanna say it took them less than 8 weeks.

Gina Noy: I’m hoping that the doubling of the standard deduction will simplify tax return preparation for many people. I’m also hoping that the decrease of the tax rate will also help people.

Gina Noy: We are gonna be maybe gaining, like you said, a couple hundred bucks, but we might be losing, if it doesn’t stimulate the economy [the way] that the hope is, that we might be losing a lot in terms of debt and the programs, the programs that I rely on: transportation, daycare, schooling, federal disaster, there’s all kinds of programs that we pay for, I’m afraid what’s going to happen to them.

Gina Noy: I was very nervous to find out how I would get my clients but honestly if you do a good job for one person, that one person spreads the word.

Gina Noy: It’s also a relationship: Do I want to call?…If you’re dreading a call to you CPA, or an emails to your CPA, I think it’s time to switch.

Gina Noy: Your accountant’s not gonna be your best friend. They don’t need to be your best friend. They just need to be there when something’s happened.

Gina Noy: If you are either doing a side business or you’re going full fledged as a freelancer, separate one of your credit cards for business only.

Gina Noy: Start organizing your book monthly.

Gina Noy: Your income minus your business expenses equals your taxable income, and then I would take…30-40% towards taxes…30% of every hundred dollars you make is not yours to keep.

Gina Noy: I think you’ll know when you need a professional [accountant].

Gina Noy: Certain accountant’s, they only work tax season, and then you can’t find them.

Gina Noy: Some tax preparers are just there for the tax season, so you have to ask, do you work the whole year?

Gina Noy: If you’re a very specific business needs, like if you’re a graphic designer, maybe ask them if they have other clients like that.

Gina Noy: It’s crucial to get everything done early and then plan for next year.