Freelancers & Taxes – An Opportune Market in the U.S

It has been observed that 3 out of 10 people choose to quit their full-time jobs with an employer to pursue a freelance career. However, over 75% of freelancers tend to overpay their taxes! With the onset of the COVID19 pandemic, a lot of Americans had to work from home out of which 58% started considering freelancing. Freelancers contribute nearly $1 Trillion to the US economy. There are 3 different types of Freelancers: Moonlighters: Moonlighters are professionals who freelance after working their traditional 9-to-5 job. These individuals do a little of both: full-time traditional jobs and project-based work here and there. Diversified workers: Diversified workers do a little bit of everything throughout the day. A “typical” diversified worker can have one or more traditional, part-time job(s), and also do some freelancing work on the weekends or in their spare time. Independent contractors: These are traditional freelancers who do not have an employer, and work full-time as a freelancer. All these workers have to file taxes, in a somewhat similar manner. There are a couple of tax engines available for the self-employed such as TurboTax, Everlance, HRBlock, and FlyFin A.I. Each of these apps and software ease the complicated tax-lives of Freelancers. For example, FlyFin is an AI-based tax engine that learns expense patterns and classifies them automatically. Check it out at https://flyfin.tax