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Big Tax Surprise

Posted on July 3, 2015 by Betty in Freelance Business, Mistakes, Taxes in the USA No Comments
Dice

I’ve been very careful about taxes my entire freelance career. With every check I receive, I set aside a percentage for taxes and business expense before I pay myself. I pay my quarterly estimated payments. And most years I’ve received a small refund or owed just a little.

This year, I filed taxes late (with an extension). I also had a good year and as a family, we earned a lot (for us). I didn’t adjust my quarterly payments as I should have. The higher income meant we have to pay back our health insurance credit. Wham! Huge tax bill.

Luckily I have the money to pay it, although things will be a bit tight for a while.

Lesson learned? Keep up on my bookkeeping and check in with my accountant throughout the year to avoid another big, expensive surprise next year.

Have you ever had a big tax surprise?

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About me

I'm Betty, and I created Freelance Q & A to share what I've learned as a successful freelance graphic designer.

I'm based in Boulder, CO and work with clients across the USA. You can visit my business site and see my portfolio at
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