Tax Planning for Freelancers With FIN

If you’re a freelancer, you know the excitement of landing new clients — and the dread of quarterly tax season. Unlike traditional employees, taxes aren’t withheld from your paychecks, which means it’s up to you to keep track and pay up, four times a year.

It sounds simple in theory, but the reality? Payments from multiple clients, various platforms, fluctuating income, and scattered receipts can make tax prep feel like solving a puzzle with missing pieces. This is where smart tools — like FIN — can make a real difference.

Let’s break down how to stay ahead of your freelance tax game without the usual stress.

Set Aside a % Each Payment

One of the golden rules of freelance tax prep is to treat taxes as a recurring expense, not an annual surprise. A good starting point is to set aside roughly 25–30% of every payment you receive. This covers federal taxes, self-employment tax, and, depending on where you live, state taxes too.

By consistently setting aside a percentage of each incoming payment, you avoid the last-minute scramble (and potential penalties) that come with underpayment.

It’s even better if you automate this. While traditional methods like spreadsheets require manual updates, an AI-powered assistant like FIN can help you track your income in real time — giving you instant clarity on how much to reserve for taxes after each payment hits your account.

Use FIN Tags for Tax-Related Income & Expenses

Tax deductions are a freelancer’s best friend. Business expenses — from software subscriptions to home office equipment — can significantly lower your taxable income. But only if you track them properly.

This is where FIN’s tagging feature comes in handy. Assign specific tags to all tax-related transactions:

• Income tags: "Client payments," "Project income," "Consulting fees"

• Expense tags: "Office supplies," "Software tools," "Professional services"

By the time tax season rolls around, you won’t need to dig through old statements or guess at deductible expenses. You’ll have a clear, categorized record of what you’ve earned and spent for your freelance work.

Plus, it makes conversations with your accountant (or tax software) way smoother.

Stop Stressing About Quarterly Taxes

Traditional tax tracking methods — like jotting expenses in a notebook or keeping mental notes — might work for a while, but they’re risky. It’s too easy to overlook deductions, forget payments, or miscalculate how much you owe.

With smarter, AI-powered tools like FIN, you get a clear picture of your finances without extra effort. From tagging transactions to giving you real-time insights on your tax reserves, FIN helps you stay proactive and prepared.

If you’re looking for a smarter way to stay on top of your money, managing everything through FIN might be exactly what you need.