January 4, 2008

I don’t know about you, but I approach tax time every year with both fear and hope. Will this be the year I overpaid my estimated taxes and we’ll get a refund? If so, will it be big enough to finance a trip to England for a week—or just to McDonalds for a Happy Meal? Or–gulp–will this be another year when I didn’t estimate correctly and pay enough, so I have to buckle down and generate a chunk of cash before April? I always figure taxes right after January 1 so I know my status–good or bad–although I don’t file them early unless we’re getting a refund.

If you do your own taxes, be sure to read up on what deductions you’re allowed. After you’ve figured profit and loss of your business and calculated the business use of your home a few times, it’s not that difficult. And if you set up your files for 2008 NOW, you’ll be way ahead of the game next January. Being organized with files for receipts is half the battle.

If you need help, try these places online:

IRS website for help with tax preparations, to download forms and instructions

Interview covering common questions for freelance writers

TurboTax: various editions for walking you through your tax prep

Taxes for Writers: Paying Your Estimated Tax Get 2008 started right!