April 15th is here already. Where has the first quarter of 2015 gone?! Today may not seem like a monumental day to you, but some are rejoicing or dreading today as it’s the day that income tax returns are due (unless you got an extension, but that’s another story!)
I got my taxes done by my accountant again this year and he finished them up mid-March.
After I started freelancing in July, I saved 30% of all my freelance income in case I had to pay in to taxes for 2014. I had nearly $1,500 saved up for that purpose alone. But when I went to find out how my tax return ended up, I was surprised to learn that I was going to get a small refund back!
I received a total refund of $357 and combined with my tax savings, which are now “extra”, I had a small windfall of $1,831.
I’ll admit it, I was pretty stoked to find out about this extra money and it couldn’t have come at a better time as I’ve had a few additional house projects come up that need to be completed ASAP. Unfortunately, the projects will cost me more than just my tax refund money, but I’ve got a plan in place to help me avoid charging anything onto a credit card. I’ll tell you more about that later.
In the meantime, here is a little table showing how I’ve spent a portion of my tax refund already:
|House Project (so far)||$291.93|
2015 Tax Plan
Another thing I want to discuss today is my plan for 2015. After speaking with my accountant, I’m not required to pay quarterly taxes for my freelance income because I got a refund in 2014. But I know that I’ve already made more in the first 3 months of freelancing this year than I did in the entire year of 2014. Therefore, my accountant and I decided I should begin paying a little something into quarterly taxes to cover my bottom so I (hopefully) don’t owe at the end of the year.
This is my first time paying quarterly taxes and so I’ll update you as I learn more at the end of the year. I thought Femme Frugality did a great job of explaining more about her quarterly tax strategy in this post. She and I seem to have a similar opinion on paying quarterly taxes this year, so be sure to check that post out for more info.
Have you ever paid quarterly taxes? Why or why not?