haydenburns•2d agoMost Upvoted

Just hit $10k in a single month for the first time, which is crazy to me.

I've been a freelance writer for three years and my average was always around $4k. This month I landed two big ongoing clients from a referral. How do you even start to plan for taxes on that kind of jump?

2 comments

2 Comments

jenkins.alice2d ago

Whoa, congrats! That's a huge jump. First, don't spend all of it. I'd take 30-40% right off the top and put it in a separate savings account just for taxes. Then, look up your estimated tax payment dates. You might need to make a bigger payment next quarter because of this income spike. I use a simple spreadsheet to track what I set aside.

the_jessica2d agoTop Commenter

How much did you set aside for taxes on your first big check? @jenkins.alice is right about that separate account, I did the same thing. I actually opened a second savings account just for tax money so I wouldn't even see it with my regular cash. Made my quarterly payment way less stressful.