Serious question, my accountant said I should be saving 40% of every freelance check for taxes.

We were going over my numbers from last quarter and he pointed out I'd only set aside 25%. That extra 15% buffer is for the self-employment tax hit I always forget about. How do you all handle your quarterly tax payments without feeling broke?

3 comments

3 Comments

aliceharris22d ago

Just open a separate high yield account and auto transfer that 40 percent immediately.

kellyallen22d ago

But is that even worth the hassle for most people? Seems like overkill.

beth_kelly22d ago

I actually used to agree with you, @kellyallen. It seemed like too much work for a small gain. What changed for me was setting up a single automatic transfer. Now that money just moves without me thinking about it. Seeing it build up over a few months made a real difference for my peace of mind. The hassle was just that first setup, and it paid off.