Calculating tax liability as an independent contractor can be fairly difficult and frustrating. There are many online calculators to try. However, we found many were too basic and did not include enough options for independent contractors. Whether your income is solely from your business or you have several additional W2 income streams, we have you covered.
At hello benji, our forecasting tool balances the power of a complex calculator with a simplistic user experience specifically tailored for freelancers and independent contractors.
How to get started
When you sign up for an account, we will ask some simple questions regarding your tax demographics. These things include your filing state, filing status, and number of dependents. Additionally, we will ask questions regarding your freelance business including revenue, mileage, and home office size. This information forms the basis of your tax liability. You will be able to update this information at anytime.
The Forecast page in hello benji allows you to further tweak your tax plan.There are categories for additional income from full or part-time jobs, business related expenses, and investments. All of these have drastic affects on your tax liability and should be reviewed for accuracy. The General section is where you can update your tax demographics that were collected during sign-up.
In Other Income section, we will ask you for your latest paystub information including year-to-date gross salary and all taxes withheld. This will allow us to forecast your annual end-of-year gross salary and taxes withheld.
Remember to keep your paystubs up-to-date throughout the year to get the best estimates.
In the Expenses and Investments sections, you can enter the estimated amounts you plan on paying for the year. We offer helpful suggestions that you may not even realize are tax deducible. Did you know that you can deduct the cost of a hello benji subscription?
With your plan complete, we run the numbers through our tax calculators and provide you with your federal and state tax liability. Knowing how much you may owe in taxes at the end of the year will give you a head start for planning your yearly finances.
Even more power!
But it gets better. With a paid membership to hello benji, you will be able to track your current tax liability at anytime throughout the year. Being able to compare your tax plan with a your current numbers can help you adjust your forecast. These adjustments will help reduce or eliminate any nasty surprises during tax season.
That's the power of hello benji!
Get started forecasting for free.
👋 until next time,
The hello benji team.