Why Freelancers & Creators Need Better Tax Strategies This Year

Author

William Thompson
May 19, 2025

In partnership with

The rise of the creator economy and freelance work has opened the door to flexible income and creative freedom. But it’s also introduced a new level of financial responsibility, especially when it comes to taxes. If you're earning income through gigs, content creation, consulting, or a side hustle, this is the year to level up your tax strategy.

Why This Year Is Different

The IRS is increasing oversight on digital income. Platforms like PayPal, YouTube, Etsy, and Venmo are reporting more transactions, meaning income that might’ve flown under the radar in the past is now in plain sight.

On top of that, freelancers often deal with:

  • Irregular income

  • Self-employment tax (an extra 15.3%)

  • No employer-sponsored benefits

  • The need to pay quarterly estimated taxes

Without a proactive plan, it’s easy to fall behind or leave money on the table.

Smart Moves to Make Now

Freelancers and creators can reduce stress and save more by taking these steps:

  • Track everything. Use bookkeeping software or a spreadsheet to keep tabs on income and expenses.

  • Deduct with confidence. Common write-offs include home office costs, equipment, internet, marketing, and even part of your phone bill.

  • Set aside 20–30% of income for taxes to cover both federal and self-employment taxes.

  • Pay quarterly. Avoid IRS penalties by making estimated payments throughout the year.

  • Consider a retirement account. A SEP IRA or Solo 401(k) not only prepares you for the future, but it also reduces your taxable income today.

Being your boss comes with big opportunities, but also big responsibilities. With a clear tax strategy, you can keep more of what you earn, avoid year-end surprises, and focus on building the brand or business you love.

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