Episode 98: How do I pay taxes as a Virtual Assistant?

Full Episode Transcription:

(00:07):
Welcome, welcome back to another episode of Quick Tip Thursday here on the Ditch the Classroom podcast. Today’s question that was submitted to me is: how do I pay taxes as a virtual assistant? Now just a disclaimer upfront: I am not a tax advisor. So I do recommend hiring someone who can help you with your specific situation. But I will say that as a virtual assistant, it’s smart to make quarterly tax payments. That way you’re not stuck paying one giant lump sum at a time. So you can look up, you can go to Google and type in quarterly tax payment, due dates for 2022.

(01:55):
There’s one coming up next week, July 15th, but I recommend any income that’s coming into your business that you set aside 20 to 25% of every payment you receive and transfer it into a separate account. That way you’re not tempted to spend it and left scrounging for the money. When it comes time to make your payment. As far as making the payments, you just simply go to irs.gov/payments/direct-pay. So that’s irs.gov/payments/direct-pay. And then you just go in there. And unfortunately there’s not really a calculator to like figure out how much you’re supposed to pay. I know it’s kind of stressful. They’re like you owe us. We’re not gonna tell you how much you owe us. So it’s important for you to be keeping track of your income in your business, as well as your expenses. So if you purchase a course or materials or other things for your virtual assistant business, some of that can be deducted from what you owe for taxes.

(03:06):
So you can go and create a spreadsheet to track all of this and then just put it in your calendar to update it twice a month. So you’re not like scrounging at the last minute, trying to figure out how much you owe, go update it twice a month and then you’ll know exactly what you owe when it comes time to make your payments. And if y’all didn’t already know in the Teacher Turned Freelancer Academy, I actually have a spreadsheet already created for y’all it’s the Profits and Losses spreadsheet. It’s gonna help you figure out exactly what you owe and keep track of what you’re actually making in your business. So that is one resource out of so many others that are included in the Teacher Turned Freelancer Academy to really help make this virtual assistant business easy for you. So you just go in and plug your information. It’s already set up for you, just like the portfolio template, the contract template, everything else in TTFA. I really designed this to help y’all run your virtual assistant business with ease. So go to teacherturnedfreelancer.com. You can see everything else that’s included and get registered there. And I also want to invite you to join our free Facebook community, facebook.com/groups/ditchtheclassroom. Come in there, scroll to our Quick Tip Thursday episode post and drop your comments there. You guys, if I run out of questions to answer on Quick Tip Thursday, we won’t have these episodes anymore. We’ll go back to one a week instead of two. And I really enjoy doing these for y’all. So I would love it if you would submit some more questions and I would be happy to answer them. All right, y’all thank you so much for tuning in and we will see you next week.