• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Financial Panther

Financial Independence, Side Hustling, and Ebikes

  • Home
  • About
  • Blog
  • Side Hustle Reports
  • Best Credit Card Offers
  • Current Money Bonuses
  • 70+ Side Hustle Apps/Gigs
  • Bank Account Bonuses
  • Ebikes
  • Archives

The Role of Accountants in Filing Tax Extensions for Freelancers

Last Updated on October 23, 2024August 13, 2024 Leave a Comment
This post may contain affiliate links. Affiliate Disclosure.This post may contain affiliate links. Financial Panther has partnered with AwardWallet and CardRatings for our coverage of credit card products. Financial Panther, AwardWallet, and CardRatings may receive a commission from card issuers. Some or all of the card offers that appear on the website are from advertisers. Compensation may impact on how and where card products appear on the site. The site does not include all card companies, or all available card offers. Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed or approved by any of these entities.

More people are opting to work as independent contractors and freelancers in today’s gig economy. While there are many advantages to this, such freedom and flexibility, there are also distinct difficulties, especially with regard to taxation. Comprehending the role of accountants in submitting tax extensions is a critical component of freelancer tax management. This article explores the significance of tax extensions, the difficulties faced by independent contractors in optimizing their tax benefits, and the ways in which accountants might facilitate the procedure.

The Significance of Tax Extensions for Independent Contractors

Independent contractors and freelancers frequently manage several clients, deadlines, and projects at once. Tax season can sneak up on people during this hectic time, leaving them unprepared. In these situations, filing a tax extension becomes a useful tool.

A tax extension gives independent contractors more time to collect their financial records, precisely compute their income, and make sure they are deducting everything from their taxes. Those with complicated financial situations, many sources of income, or those coping with unanticipated events like illness or family difficulties may find this extra time especially helpful.

Difficulties in Optimizing Tax Reductions

Even though freelancing has many advantages, many independent contractors find it difficult to optimize their tax deductions. It can be challenging for independent contractors to be aware and compliant due to the complexity of tax rules and the frequent changes in legislation. These are a few typical difficulties:

Insufficient Knowledge About Deductions

Because they are unaware of these deductions, freelancers sometimes lose out on significant earnings. Certain costs, such as those associated with a home office, phone and internet fees, travel expenses, and certain meals, may be deducted. But if you don’t know about these deductions, you might not claim them, which would increase your tax obligations.

Variable Income

Freelancers frequently have variable sources of income, in contrast to paid staff. It may be difficult to precisely estimate taxes due to this unpredictability. Underestimating income can result in underpaying taxes or overpaying taxes, both of which have negative financial effects.

Getting Around Quarterly Estimated Tax Payments

It is mandatory for freelancers to pay their anticipated taxes to the IRS on a quarterly basis. It can be difficult to calculate and handle these payments. Penalties and interest rates for missing or underpaying payments can increase the financial strain.

Accountants’ Contribution to Process Simplification

Because of these difficulties, accountants play a crucial role for independent contractors. With their extensive knowledge and experience, accountants can help freelancers save as much money as possible by streamlining the tax filing procedure.

Precise Income Estimation

Accounting professionals’ assistance in effectively calculating freelancers’ revenue is one of their main responsibilities. Accountants can make sure that all revenue streams are properly recorded and accounted for by using resources such as the independent contractor tax calculator. Accurate tax filing and year-round financial decision-making are facilitated by this as well.

Deduction Identification and Optimization

Accountants are knowledgeable about tax laws and rules. They are able to determine any deductions that a freelancer may be qualified for and make sure that the claims are made accurately. This can boost savings and drastically lower the total tax obligation.

Taking Care of Estimated Tax Payments

Freelancers who need help managing their expected quarterly tax payments might reach out to accountants. They can assist with figuring out how much needs to be paid and can set up reminders to make sure payments are made on time. Additionally, accountants can expedite the payment process and make it more easy for freelancers by offering the option to pay estimated taxes online.

Submitting Tax Extension Requests

Accountants can request an extension on behalf of freelancers who are unable to file their taxes by the deadline. To do this, fill out Form 4868 and send it to the IRS. This will give you an extra six months to file your tax return. It’s crucial to remember that although this extension gives you more time to file, it doesn’t give you more time to pay any outstanding taxes. Accountants can help independent contractors pay any fees that need to be paid in order to avoid fines.

Making Plans for Upcoming Tax Years

Accountants may assist freelancers with tax planning beyond just filing taxes. An accountant’s analysis of historical financial data and forecasting of future earnings might yield important information about tax avoidance techniques. Freelancers can keep ahead of their tax responsibilities and prevent last-minute surprises by taking a proactive strategy.

The Advantages of Expert Counseling

Having a professional accountant has advantages that go beyond just paying taxes. Here are a few more benefits:

Mental tranquility

Freelancers can feel more at ease knowing that their taxes are being handled by experts. Without having to worry about deadlines and tax compliance all the time, they can concentrate on their work and clients.

Steer clear of penalties

Accountants minimize the possibility of fines and interest by making sure that all tax forms are filed on time and precisely. They can also offer advice on how to stay clear of typical problems that result in fines.

Overview of Finance

Beyond taxes, accountants can provide insightful financial advice. They can support independent contractors with financial planning, budgeting, and even business expansion plans. This all-encompassing strategy may help achieve long-term financial success.

Verdict

When it comes to handling their taxes, independent contractors and freelancers have particular difficulties. It can be a daunting procedure to manage projected estimated tax payments 2024, maximize deductions, and comprehend intricate tax regulations. However, freelancers can easily manage these problems with the help of expert accountants.

Accountants are essential for calculating income correctly, managing projected tax payments, recognizing deductions, and filing tax extensions. Their knowledge helps freelancers minimize their tax savings and stay out of trouble in addition to making the tax filing procedure simpler. For independent contractors hoping to succeed in their professions, an accountant’s advice can make all the difference in a world where having a stable financial future is crucial.

Using resources like the online tool for estimating taxes and the independent contractor tax calculator, accountants may offer freelancers complete assistance, guaranteeing their financial stability and compliance. It is imperative to seek professional counsel as the tax year 2024 draws near. Employing an accountant can put freelancers in a better position to succeed financially and feel at ease.

This post may contain affiliate links. Financial Panther has partnered with AwardWallet and CardRatings for our coverage of credit card products. Financial Panther, AwardWallet, and CardRatings may receive a commission from card issuers. Some or all of the card offers that appear on the website are from advertisers. Compensation may impact on how and where card products appear on the site. The site does not include all card companies, or all available card offers. Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed or approved by any of these entities.

More Recommended Ebike/Scooters

Check out these other ebikes and scooters I've reviewed:

  • Urban Arrow Ebike – Last year, I made one of the largest purchases I’ve ever made – I bought a $9,000 electric cargo bike from Urban Arrow. In my Urban Arrow review, I will discuss what it is and why I decided to buy this bike, as well as discuss how impactful a bike like this can be on your journey to financial independence.
  • Troxus Explorer Step-Thru Ebike – The Troxus Explorer Step-Thru is a fat-tire ebike that I’ve had the pleasure of riding for a while now. It has amazing power, great looks, and awesome range. If you’re looking for a great fat-tire ebike that offers a lot for the price, the Troxus Explorer Step-Thru is definitely one for you to consider. Check out my Troxus Explorer Step-Thru Review.
  • Hovsco HovBeta Ebike – The HovBeta is a folding ebike with great specs and a lot of interesting features, and importantly, it’s sold at a good price point. I’ve had a blast commuting with it and using it to do deliveries with DoorDash, Uber Eats, and Grubhub. Check out my Hovsco HovBeta Ebike Review.
  • Vanpowers Manidae Ebike – The Vanpowers Manidae is a fat tire ebike that I’ve been riding as my primary winter commuting bike and have also been using it to do food delivery with apps like DoorDash, Uber Eats, and Grubhub. After clocking in a decent number of miles with this ebike, I wanted to write a post sharing what my experience with the Vanpowers Manidae ebike has been like. Check out my Vanpowers Manidae Review.
  • Sohamo S3 Step-Thru Folding EBike Review – A Great Value Folding Ebike – The Sohamo S3 Step-Thru Folding Ebike is an entry-level folding ebike that offers a lot of value for the price point. I’ve been riding the Sohamo S3 for a while now, putting the bike through its paces, and I have to say, this bike has exceeded all of my expectations. Check out my Sohamo Review.
  • KBO Flip Ebike – The KBO Flip is an excellent bike. I’ve had a great time riding it and think it’s a versatile bike that can be used for a lot of purposes and can fit a variety of lifestyles. It’s worked out great for me as a general commuter bike and as a food delivery bike. Check out my KBO Flip Review.
  • Hiboy P7 Commuter Ebike – The Hiboy P7 is an excellent electric commuter bike that’s offered at an affordable price point. The range and speed of this bike are both very good, so you won’t have any trouble getting anywhere you need to go with it. As a food delivery vehicle, this is also good – with how much range it offers, you’ll be able to work all day on a single charge. Check out my Hiboy P7 Commuter Electric Bike Review.
  • Himiway Escape Ebike – The Himiway Escape is an interesting bike for anyone looking for a moped-style ebike. If you’re a gig economy worker, the Himiway Escape is particularly interesting and it’s possible to think of it as an investment, especially if you can opt to do deliveries with the Himiway versus using a car. It’s not cheap, but you can definitely make your money back when you compare the mileage you’ll put on your car versus using an ebike. Check out my Himiway Escape Bike Review.
  • Espin Sport Ebike – The Espin Sport is a good ebike for someone who is looking for an ebike that feels and rides more like a regular bike. There are many ebikes that are really only bikes in name. In reality, they’re basically electric mopeds. The Espin Sport, by contrast, is a bike you could probably ride without the battery and you’d feel like you’re just riding a regular bike. Check out my Espin Sport Review.
  • Varla Eagle One Scooter – The Varla Eagle One is an excellent scooter that can make sense for a lot of people. It can work as a primary mode of transportation. You can use it to work on gig economy apps like DoorDash, Uber Eats, and Grubhub. And it can also be a recreational vehicle if you’d prefer to use it for that. Check out my Varla Eagle One Review.
  • Varla Falcon Scooter – The Varla Falcon is an excellent scooter that offers a good amount of power at a lower price point compared to more powerful scooters. It’s not exactly an entry-level scooter, nor is it a high-powered scooter. I think it fits somewhere in-between those two categories – an intermediate scooter if I had to give it a category. Check out my Varla Falcon Review.
  • Hiboy S2 Scooter – The Hiboy S2 is an excellent entry-level commuter scooter that's perfect for someone looking to save some money in transportation costs and improve their commute. Check out my Hiboy S2 Review.
  • Hiboy S2R Scooter – The Hiboy S2R is one of the more interesting electric scooters I’ve been able to test out. It’s not a high-powered scooter, but for an everyday transport option, it’s very useful, especially given some of the unique features that it has. Indeed, for the price, the Hiboy S2R might be the best value scooter I’ve used. Check out my Hiboy S2R Review.
  • Fucare H3 Scooter – The Fucare H3 is a fun scooter and I’ve enjoyed testing it out. For a daily commuter or quick trips or errands, the Fucare H3 is probably the scooter I’ll use. It’s portable and easy to maneuver, so it’s just easier to take on the road when I need it. Check out my Fucare H3 Scooter Review.

More Recommended Investing App Bonuses

For additional investing app bonuses, be sure to check out the ones below:

  • M1 Finance ($100) – This is a great robo-advisor that has no fees and allows you to create a customized portfolio based on your risk tolerance. You also get $100 for opening an account. Check out my M1 Finance Referral Bonus – Step-By-Step Guide.
  • SoFi Invest ($25) – SoFi Invest is an easy brokerage account bonus that you can earn with just a few minutes of work. Use my SoFi Invest referral link, fund your SoFi Invest brokerage account with just $10 and you’ll get $25 of free stock. I also have a step-by-step guide for the SoFi Invest referral bonus.
  • Webull (20 free stock shares) – Webull's current promotion gives you 20 free shares valued between $3-$3,000 each if you open an account using my referral link. Here’s a guide I wrote about how to earn your free shares using Webull.
  • Moomoo (15 free stocks) – Moomoo is a free investing app currently offering 2 different referral bonuses if you open an account using a referral link. Read my Moomoo referral bonus guide for more information.
  • Robinhood (1 free stock) – Robinhood gives you a free stock valued between $2.50-$225 if you open an account using my referral link.
  • Public (1 free stock) - Public gives you a free stock valued between $3-$70 if you open an account using my referral link.

More Recommended Bank Account Bonuses

If you’re looking for more easy bank bonuses, check out the below options. These bonuses are all easy to earn and have no fees or minimum balance requirements to worry about.

  • Upgrade ($200) – Upgrade is a free checking account that’s currently offering a $200 referral bonus if you open an account and complete a direct deposit. These bonus terms are easy to meet, so it’s well worth doing this bonus as soon as you can. Here’s a post I wrote with more details: Upgrade $200 Referral Bonus – Step By Step Directions.
  • Ally Bank ($100) – Of all the banks out there, Ally is, without a doubt, my favorite. At the moment, Ally is offering $100 to customers who open an eligible Ally account and meet the requirements. Here are the step-by-step directions to earn your Ally Bank referral bonus.
  • Fairwinds Credit Union ($175) – Fairwinds Credit Union is offering a referral bonus for users that sign up using a referral link. Fairwinds has no fees or minimum balance, so this is a particularly easy bonus to earn. Since this is a smaller credit union, my gut instinct tells me this offer won’t be around long, so if you’re in a position to meet the bonus requirements, grab this bonus before it’s gone. Here is my step-by-step guide on how to earn your Fairwinds Credit Union bonus.
  • Chime ($100) - Chime is a free bank account that offers a referral bonus if you use a referral link and complete a direct deposit of $200 or more. In practice, any ACH transfer into this account triggers the bonus. This bonus is easy to earn and posts instantly, so you’ll know if you met the requirements as soon as you move money into the account. I wrote a step-by-step guide on how to earn your Chime referral bonus that I recommend you check out.
  • US Bank Business ($900) – This is a fairly easy bank bonus to earn, since there are no direct deposit requirements. In addition, you can open the Silver Business Checking account, which comes with no monthly fees. Check out how to earn this big bonus here.
  • GO2Bank ($50) - GO2Bank is an easy bank bonus that I recommend people take advantage of if they have an easy way of meeting the direct deposit requirement. I like that it’s easy to open the account and that the bonus pays out quickly. Check out my step-by-step guide on how to earn your GO2Bank $50 referral bonus.
  • Current ($50) – Current is a free fintech bank that’s offering new users a $50 referral bonus after signing up for an account using a referral link. Current is an easy bonus to earn and also gives you access to three savings accounts that pay you 4% interest on up to $2,000. That means you can put away up to $6,000 earning 4% interest. That’s very good and makes Current an account I recommend to everyone. Check out my step-by-step guide on how to earn your Current Bank bonus.
  • Novo Bank ($40) - Novo bank is a free business checking account that’s currently offering a $40 bonus if you open a Novo business checking account using a referral link. In addition to being a good bank bonus, Novo is also a good business checking account. It has no monthly fees or minimum balance requirements and operates a good app and website. Indeed, it’s the business checking account I currently use for this blog. Check out my post on how to easily open a Novo account.
  • Varo ($25) – Varo is a free fintech banking app similar to Chime or Current. It’s currently offering a $25 bonus to new users that open a new Varo account with a referral link. The bonus for this bank is very easy to meet, all you need to do is spend $20 within 30 days of opening your Varo account. Check out my step-by-step guide to learn how to earn this bonus.
financial panther

Kevin is an attorney and the blogger behind Financial Panther, a blog about personal finance, travel hacking, and side hustling using the gig economy. He paid off $87,000 worth of student loans in just 2.5 years by choosing not to live like a big shot lawyer.

Kevin is passionate about earning money using the gig economy and you can see all the ways he makes extra income every month in his side hustle reports.

Kevin is also big on using the latest fintech apps to improve his finances. Some of Kevin's favorite fintech apps include:

  • SoFi Money. A really good checking account with absolutely no fees. You'll get a $25 referral bonus if you open a SoFi Money account with a referral link, and an additional $300 if you complete a direct deposit.
  • 5% Savings Accounts. I'm currently getting 5.24% interest on my savings through a company called Raisin. Opening a Raisin account takes minutes to complete, it's free, and all of your funds are FDIC-insured. I explain how it works, why I'm now using it to store my emergency fund and any other cash savings I have, and why I recommend everyone check it out in this review.
  • US Bank Business. US Bank is currently offering new business customers a $900 signup bonus after opening a new account and meeting certain requirements.
  • M1 Finance. This is a great robo-advisor that has no fees and allows you to create a customized portfolio based on your risk tolerance. You also get $100 for opening an account.
  • Empower. One of best free apps you can use to monitor your portfolio and track your net worth. This is one of the apps I use to track my financial accounts.

Feel free to send Kevin a message here.

Filed Under: articles

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Close
Side Hustle Income(View Reports)
chart-icon
$166,465
Get exclusive content delivered right to your inbox.
My Reviews
Bank Signup Bonuses (Step-by-Step)
Upgrade Bank Bonus ($200) Raisin Referral Bonus ($200) Ally Bank Bonus ($100) Fairwinds Credit Union Bonus ($175) Chime Bank Bonus ($100) US Bank Biz ($500/900) GO2Bank ($50) Current Bank Bonus ($50) Novo Business Bank Bonus ($40) Varo Bank Bonus ($25)
Other Signup Bonuses
M1 Finance ($100) Webull (20 shares) Moomoo (15 stock shares) SoFi Invest ($25) Arcadia Power ($25)
Side Hustle Reviews
Doordash Uber Eats Grubhub Rover Pet Sitting Wag Dog Walker Shipt Grocery Shopper Airbnb Lime Scooter Charger Observa IVueIt
Most Commented
Popular
  • Insight Card: A Step-By-Step Guide to 5% Interest(690)
  • Netspend Account: 5% Interest Savings and $20 Signup Bonus(680)
  • The Ultimate Guide to Bank Account Bonuses(142)
  • Bird Charger and Lime Juicer – Side Hustling As An Electric Scooter Charger(125)
  • My Postmates Review: Getting Paid To Bike Around Town(78)
  • I Quit My Job – Rejecting The Clear Career Path And Going Out On My Own(76)
  • Barista FIRE: Not Quite Financial Independence, But Pretty Close
  • The Reverse Latte Factor – How You Can Side Hustle Your Way To Financial Independence
  • Where To Get 5% Interest Savings Accounts Now That Insight Is Gone
  • Monetize Your Life And Get Paid To Live
  • The Ultimate Guide to Bank Account Bonuses
  • Over 600,000 Miles Earned In One Year – A Recap Of My First Year of Travel Hacking
Image of hands holding up phones
Personal Finance Blogs logo

Footer

Financial Independence, Side Hustling, and Ebikes

Company
About
Press
Media Kit
Contact

Resources
All Posts
Financial Independence
Side Hustles
Bank Bonuses
Ebikes
Deliveries
Articles

Legal
Privacy Policy
Disclaimer
Affiliate Policy

  • About
  • Blog
  • Side Hustle Reports
  • Best Credit Card Offers
  • Current Money Bonuses
  • 70+ Side Hustle Apps/Gigs
  • Bank Account Bonuses
  • Ebikes
  • Archives

Copyright © 2025 · Genesis Sample on Genesis Framework · WordPress · Log in

Financial Panther © 2024 All rights reserved.