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I was grabbing coffee with a fellow freelancer in Denver last month, and she mentioned she puts 40% of every check straight into a separate savings account for taxes.
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white.keith3mo ago
Forty percent sounds like a lot but @victor651 have you actually run the numbers on what you owe after a good year? I'm asking because I know a guy who does landscaping on the side and he got hammered one year, owed almost 35% and had nothing put away. He ended up doing payment plans with the IRS for three years. What do you use to figure out your actual percentage?
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victor6515mo ago
Forty percent just for taxes? That's not a savings account, that's a hostage situation. My accountant would have a heart attack if I tried that.
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