CEDAR RAPIDS, Iowa,
June 11, 2018 /PRNewswire/ -- The
deadline to pay estimated taxes for the second quarter is
June 15, 2018, but only 38% of
freelancers make quarterly payments to the Internal Revenue
Service, according to a new Ipsos Marketing study commissioned by
TaxAct.
The penalties for not filing returns and paying taxes owed can
be up to 5% of an unpaid tax bill each month, which can take its
toll on freelancers—most of whom, according to the study, are less
stable financially than other taxpayers, and carry unsecured debt.
The report, "Measuring the Financial Health of the Freelance
Industry," found:
- 63% of freelancers feel they are "unstable" or "just getting
by" financially.
- Only 43% of freelancers are confident about their overall
financial future.
- 64% of freelancers carry debt, and of those debtholders, 56%
have unsecured debt.
- A mere 37% of freelancers would be able to handle a major
unexpected expense well.
- Only 40% of freelancers are "very comfortable" or "somewhat
comfortable" with their current retirement savings plans.
When it comes to tax preparedness, the study found that 59% of
freelancers are confident with their tax deductions, but only 38%
of freelancers expect to file a separate business tax return.
"The research clearly shows that the majority of freelancers are
in greater need of financial guidance than members of the workforce
with more traditional income," said Jenna Ivanoski, Gig Economy Product Manager for
TaxAct. "Given the unstable financial situation for most
freelancers, quarterly tax penalties can really add up, and even
put their very financial security at risk. At TaxAct, we are
well-positioned to provide freelancers, and the independent tax
professionals who serve them, with solutions that not only help
maximize their tax refunds, but also strengthen their financial
health all year long."
TaxAct recently rolled out a series of enhancements available
within its TaxAct® Freelancer and TaxAct®
Premium solutions, including the new Deduction
Maximizer™ and Self-Employment Tax Calculator, to help
freelancers optimize their tax refunds and identify ways to save
more during the entire year—as opposed to just tax season. To learn
more about TaxAct Freelancer, visit
https://www.taxact.com/individual-taxes/online/freelancer.
The study from Ipsos Marketing also includes interesting
findings about freelancers based on their professions and living
arrangements, such as:
- Consultants and Web/software developers are more likely to make
quarterly payments to the IRS and feel confident about tax
deductions.
- Freelancers who are homeowners tend to earn a higher income,
are more likely to be in cohabitating relationships, and have a
more positive outlook on their financial futures.
- Consultants and Web/software developers earn a higher income
from their primary income sources, while writers and bloggers earn
less.
- In addition to earning a higher income, Web/software developers
also tend to have more positive financial outlooks, are more likely
to add to retirement accounts, and are better equipped to handle
unexpected expenses.
About TaxAct
TaxAct is the savvy tax-filing partner,
providing hardworking Americans with affordable digital and
downloadable tax management software to successfully navigate the
U.S. Tax Code and improve their overall financial well-being.
TaxAct's products enable all users, regardless of profession or tax
bracket, to quickly, accurately, and cost-effectively file their
taxes—and find ways to save money in all areas of their financial
lives.
TaxAct also offers a suite of TaxAct Professional enterprise
solutions to help independent tax professionals maximize revenue
and optimize client service. TaxAct Professionals can efficiently
manage and grow practices of any size using scalable software and
e-filing options which are customized for their businesses. To
learn more about TaxAct, a business of Blucora, Inc. (NASDAQ:
BCOR), visit www.taxact.com and www.taxact.com/professional, or
connect with us on Facebook, LinkedIn, and Twitter.
About the Study
These are the findings from an Ipsos
poll conducted January 22-28, 2018 on
behalf of TaxAct. For the survey, a sample of 502 adults who
self-identify as being a freelancer (n=208), sole proprietor
(n=117), or small business owner (n=177) from the continental U.S.,
Alaska and Hawaii was interviewed online, in English. The
precision of Ipsos online polls is measured using a credibility
interval. In this case, the poll has a credibility interval of ±5.0
percentage points for all respondents surveyed.
Media Contacts
Dana
Taormina
JConnelly for TaxAct
(973) 850-7305
taxact@jconnelly.com
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SOURCE TaxAct