Freelancing in the_digital_age_july_2018

OUR MISSION
SKILLS WE TEACH
The Knowledge House (TKH) empowers and sustains a talent pipeline
of technologists, entrepreneurs, and digital leaders, who will uplift their
communities out of poverty.
Digital Fluency
Graphic Design/Usability
Cross-Platform Development
Front-End Web Development
Server-side Technologies
Data Science
Project Management
Business Analytics
Professionalism
OUR FELLOWS
Our fellows possess a sense of intellectual curiosity, professionalism,
resourcefulness, and commitment to their community. By becoming a TKH
fellow, you will be joining a network of like-minded young adults looking to
break into tech or increase their already existing skillset.

SEE WHAT OUR ALUMNI HAVE TO SAY
ABOUT THEIR EXPERIENCE AT TKH
"The Knowledge House has been able to increase my knowledge in
programming as well as teach me how to perform in the professional
environment. I was also able to release my own products and expand my
horizons in programming. The Knowledge House was also able to help me
land a job in the field I want and help me continue to be the best I can."

-Jose Ortiz (Former TKH Student and Instructor, & Full-Stack Developer at
Collectively )
WANT TO KNOW MORE?
CONTACT
Programs - Madeline | mvera@theknowledgehouse.org
Events & Outreach - Cassandra | cpierre-louis@theknowledgehouse.org
Volunteer & Industry Engagement - Joe | jcarrano@theknowledgehouse.org
"The best part of being here at TKH is the love and
motivation I get from everyone around me. Usually, I
get shunned for my enthusiasm but being here I am
allowed to grow my center of gravity"
-Mouminatou Barry (Front-End Web Developer, Oath)

CALLING ALL
VOLUNTEERS!
BE A PART OF OUR VOLUNTEER
INITIATIVE PROGRAM (VIP), AND
ENGAGE WITH ASPIRING
TECHNOLOGISTS THROUGH:
MENTORSHIP
TECHNICAL SKILL REVIEWS
CURRICULUM REVIEWS
FACILITATING WORKSHOPS
GUEST SPEAKING
HOSTING A SITE VISIT
MOCK INTERVIEWS
FOR MORE INFORMATION,
PLEASE CONTACT:
(646) 348-0652
JCARRANO@THEKNOWLEDGEHOUSE.ORG
THEKNOWLEDGEHOUSE.ORG/VOLUNTEER
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JOE CARRANO

Free and Low-cost Resources for Freelancers
Articles, Guides, & Resources
Freelancers Union
Samaschool
Skillcrush Ultimate Guide to Going Freelance
Medium
Freelance to Win

Contracts, Billing, Payments
And Co
Free Agent
Harvest
Wave
ZipBooks
Shake

Time Management
Hours
Completo
Trello

Taxes
Tax Act
Electronic Federal Tax Payment System (EFTPS)
Acorns

Proposals
Samaschool
Sources: https://www.samaschool.org/tools, https://www.freelancersunion.org/resources/

HOW TO BUILD A
THRIVING NETWORK
freelancers union
NETWORKING GUIDE
B Y J U S T I N E C L AY O F PITCH PERFECT PRESENTATION
As a business coach for creative professionals, I’ve learned that
most freelancers and entrepreneurs are happier, do better
work and make more money when they have a thriving
network of trusted collaborators, supporters and advisors.
If you’re ready to let go of your old ideas about networking and
open yourself up to the unlimited potential and opportunities
out there, here are the 3 steps to finding your tribe, building a
thriving network, and having fun along the way.

Do you know the difference between freelancers who
make great money, working with clients they love and
those in permanent hustle/scramble mode?
Successful entrepreneurs and freelancers focus their
efforts where they will get the best results in the least
amount of time. This isn’t about quick fixes or skipping
steps, but doing the necessary work and planning
ahead of time so you set yourself up for success. Here’s
what you’ll need to have in place before you start:
1. Your compelling pitch
2. Your ideal client profile
So let’s give you the ‘how’ to nailing those down:
HOW TO CRAFT YOUR COMPELLING PITCH
I realize the term ‘elevator pitch’ is pretty loaded,
which is why I never use it. I also don’t believe a
1-minute, jam packed monologue ever feels natural,
or inspires genuine connection. That said, you have
just a few seconds to make a great first impression, so
it’s important you’re clear on what you do, who you
do it for, how they benefit from working with you, and
what they need to do next to hire you. Here’s what a
compelling pitch should include:
• Your ideal client description
• The results people get from working with you
• The benefit of this result
• What you sell
• What makes you unique and stand out from your
competitors
• How they can work with you
To do: Start crafting your compelling pitch using
the structure above. The most important thing to
remember is it should be a conversation starter, not
something you’ll say in full. Your goal is to pique the
other person’s interest so they ask to hear more.
KNOW WHO YOUR IDEAL CLIENT IS
As much as I want you to enjoy networking, none of
us have time to be out every night, so you need to
be strategic. The next step to setting yourself up for
success is getting crystal clear on who your ideal client
is. Because when you know who your ideal client is,
what they struggle with and what they need, you have
CLARITY, and that’s a beautiful thing!
So what makes someone an ideal client? They:
• Know they need your help
• Recognize working with you is essential
• Are easily contactable
• Will pay your fees without negotiating
• Will get results from working with you
• Will refer others
• Are people you will enjoy working with
S T E P 1
LAY THE GROUNDWORK

Don’t those kinds of clients sound great? Here’s what
you need to know to craft your ideal client profile:
• The industry they work in e.g. publishing, food,
fashion etc.
• Title (may be more than one) e.g. art director,
creative director, Marketing Director
• Sensibility
• Values
• Personality/style
• What their issues and struggles and aspirations are
• What they need right now
I can’t emphasize the importance of getting to
know your ideal client enough (so I’ll try by bolding
and italicizing it!). It’s the key to finding your tribe,
creating content, and tailoring your services to serve
them. If you’re not crystal clear on this, I’d recommend
you invest some time focusing on developing your
ideal client profile. I promise, you’ll be happier, more
effective and more successful as a result.
Networking is not about being the most-connected
person, but the best-connected person. A
strong network is a mix of close allies and looser
acquaintances. Your allies are the people in your inner
circle; your collaborators, accountability partners and
centers of influence. Your loose acquaintances might
include people you admire, those who work in different
industries, live in different cities (or even countries), and
provide diversity and strength to your network.
By connecting with both types, you’ll develop a
support network of collaborators, resources, inspiration
and referral partners.
There are 4 key groups that you should have in
your network:
1. Clients (because good clients refer other
good clients)
2. Strategic Alliances (people who do something
different from you, but serve the same ideal client)
3. Trusted Advisors (business advisors, mentors,
vendors, etc.)
4. Referral Sources (your unpaid sales force)
To do: Look at your network and see where it’s
strong and where you need to fill in some gaps. For
example, if you’re growing your design business with
the intention of landing bigger, better projects, your
focus might be on developing relationships with great
creatives such as web developers and strategists so
you can build an entire team.
S T E P 2
KNOW WHO SHOULD BE
IN YOUR NETWORK

BIO
Justine Clay is a speaker and business coach for creative
entrepreneurs and freelancers. Through a series of clear,
actionable steps, Justine will teach you how to you identify
what makes you stand out from the crowd, create a marketing
message that resonates with your ideal clients,
and build a successful and fulfilling creative business or
career. Sign up for Justine’s free 6-part video series at
www.6stepstomoredreamclients.com and start growing your
creative business or career today!
Now you’ve identified what you do and who your
ideal client is, you need to come out from behind the
computer and get out and meet them. But where do
you find them?
There are lots of organizations that have already
gathered large lists of your ideal clients for you, all you
need to do it tap into them. Go back to your ideal
client profile or avatar and ask yourself (or better still,
your ideal clients) the following:
• What professional associations do my ideal clients
belong to?
• What conferences do they attend?
• Where do they hang out? (private clubs etc.)
• What trade pubs, blogs and newsletters they read?
• Who do they follow on social media?
• What podcasts do they listen to?
Answering these questions will help you identify
where your clients are hanging out – on-line and off.
When you’re armed with this valuable information,
you can strategically choose the events you go to and
enter with a clear plan of who you want to meet, what
you’d like to share with them and what you’d like the
outcome to be.
OK, you’re ready to go! If you’re new to networking,
take it one step at a time and get just one event in your
calendar. Once you’ve got your feet wet, try a few
different places on for size – go back to the ones you
like, skip the ones you don’t. Before you know it, your
network will be full of like-minded allies and resources
you can give and received support from.
Here’s to your success!
S T E P 3
KNOW WHERE YOUR
CLIENTS HANG OUT

1. Adopt an attitude of “what can I do for you?”
rather than “what can you do for me?”
2. Have business cards (and use them
judiciously)
3. Know your elevator pitch
4. Know your ideal client profile
5. Make eye contact
6. Be genuine
7. Bring your whole self to the event. If you’re a
mum, there’s no need to hide that fact. (It’s
also not an excuse to talk about your kids all
night, or whip out the photo album!)
8. Don’t be shy about sharing ‘non-
professional’ things. You might find that
the person you’re speaking with also has a
passion for skydiving.
9. Be interesting
10. Be interested
11. Be gracious. No looking over a person’s
shoulder to see if someone more interesting
arrived
12. If you see someone who’s alone, invite him/
her to join your conversation
13. Be succinct. Interactions should be short and
sweet
14. Don’t monopolize someone (or let them
monopolize you). I find that in either
situation, simply saying “I don’t want to hog
you all night, it’s been great meeting you”
will do the trick.
15. Be OK with being uncomfortable. It’s a rare
person who can walk into a room full of
strangers and be totally at ease.
16. Be kind to yourself. Sometimes it goes
better than others and that’s OK
17. Dress the part
18. Smile, Smile, Smile
19. Pay attention to your posture. Shoulders
back, chin up and make sure nothing’s
crossed
20. Shake hands when you introduce yourself
and again when you exit saying ‘it was nice
meeting you’ (sounds basic, but lots of
people don’t do it!)
TIPS & STRATEGIES

E F F E C T I V E M AY 1 5 , 2 0 1 7 :
NYC Freelancers & Businesses
Must Comply With The Freelance
Isn’t Free Act
The Freelance Isn’t Free Act provides basic protections
for freelance work, including:
MANDATORY CONTRACTS
Freelance agreements for over $800 of work during
a 4-month period must have a contract outlining the
scope of work, rate, method of payment, and the pay-
ment due date.
30-DAY PAYMENT TERMS
Payment must be received within 30 days of work com-
pletion, or by the due date specified in the contract.
PAYMENT AGREEMENT PROTECTIONS
Clients cannot require that freelancers accept less than
the contract stipulates in exchange for timely payment
(ie: “We can pay you faster, but only if you accept less.”).
CONTRACT RESPONSIBILITY
The burden of having a contract falls on the client – not
the freelancer. Clients can face a $250 penalty if they
refuse to provide a contract.
ANTI-RETALIATION
Clients cannot retaliate against freelancer for pursuing
payment.
IF NONPAYMENT OR LATE PAYMENT OCCURS:
Freelancers must be paid within 30 days of submitting
work or the payment due date, as stipulated in the
contract. If payment is not received or is received in an
untimely fashion, then freelancers may take the follow-
ing actions:
• File a court action and litigate against non-paying
clients
• If the court rules in the freelancer’s favor, the judge
may award the freelancer:
• Double Damages: the client will owe the freelancer
twice the assessed damage.
• Attorney fees: Judges may hold the client responsible
for the freelancer’s attorney fees
• No contract fee: Clients can face a $250 penalty if
they refuse to work with a contract
• Civil penalties: Clients with multiple judgements
against them may also be subject to civil penalties up
to $25,000.
• File a complaint with the Office of Labor Policy and
Standards

The checklist above is not intended to convey or constitute legal advice. Freelancers Union will happily refer you to a
lawyer who can help you demystify the process of getting paid and point you in the right direction. Email advocacy@
freelancersunion.org for more.
#FreelanceIsntFree | FREELANCERSUNION.ORG
Ready to schedule a consultation with a lawyer, or head to small claims court? Use this checklist and story
outline to gather the details of your case and prepare your evidence for review.
Need help finding a lawyer? Download the Freelancers Union app to connect with a lawyer committed to
helping freelancers and who understand the freelance life.
PART TWO: THE FACTS
I am owed $
It took me hours / days / months (circle one) to complete the agreed-upon work
The agreed-upon payment was $
I was paid $ by: W-2 / 1099 / cash / check / direct deposit / other
My client’s name / the name of my client’s business is
My client can be found online via
PART THREE: THE PLAYERS
I can name other freelancers who have been stiffed by this client
I believe these freelancers would be willing to describe their cases
I believe this company may be politically vulnerable, and I can offer reasons why
PART ONE: THE PROOF
I have a signed contract
I have an email exchange in which terms were offered and accepted
I have a signed statement of work
I have alternate proof of correspondence:
I have (at least 2) copies of all of these documents
GATHERING THE EVIDENCE:
HOW TO PREPARE YOUR CASE FOR REVIEW

In the space below, describe your nonpayment story in greater detail. (You may also
type out your story on a separate page, so long as it does not exceed one page,
double-spaced).
Please be sure to include: Date the project began
Tasks performed/deliverables created
Dates any payment was received
Amount owed and why
NONPAYMENT STORY DETAILS

Samaschool Proposal Templates

Below are a few proposal templates you can easily customize, copy, and
paste. Remember, you can also use the Proposal Generator if you’d prefer.

Template 1: Proposal with portfolio links

Hi [client name],

My name is [your name], I specialize in [your work category/specialization] for
[your target clientele/who you specialize in serving].

Please take a look at my [website/portfolio] to view examples of my work –
[link]

You'll notice that I [something that makes you stand out].

I'd be happy to arrange a call if you'd like to talk through your
requirements in more detail.

Best,

[your name]

Example:

Hi Emily,

My name is Jesse, I specialize in building responsive WIX websites for small
businesses and nonprofits.

Please take a look at my website to view examples of my work –
www.jjbwebdesign.com.

You'll notice that I favor a clean, modern aesthetic that I think would work well
for your needs.

I'd be happy to arrange a call if you'd like to talk through your
requirements in more detail.

Best,
Jesse

Template 2: Proposal with NO portfolio

Hi [client name], **if client name is not available, use “Hi there”

My name is [your name], I specialize in [your work category/specialization] for
[your target clientele/who you specialize in serving].

You’re looking for a [job role or job description], which is exactly what I
specialize in. I’ve been doing [job role or job description] for [amount of time],
and always make sure to [something that makes you stand out].

Please let me know if you have any questions, I’m happy to talk through
your requirements in more detail over messaging or a video call.

Best,

[your name]

Example:

Hi Emily,

My name is Jesse, I specialize in building responsive WIX websites for small
businesses and nonprofits.

You’re looking for a web designer, which is exactly what I specialize in. I’ve
been designing websites for more than three years, and always make sure to
work with my clients to understand their business objectives to ensure quality
results.

Please let me know if you have any questions, I’m happy to talk through
your requirements in more detail over messaging or a video call.

Best,

Jesse

Template 3: Comprehensive Proposal
This proposal is borrowed from www.fulltimenomad.com, a great site
with lots of useful information for online freelancers.

Hi [client name], **if client name is not available, use “Hi there,”**

Thanks for inviting me to submit a proposal. **Start with this only if you
have been invited to apply for a job. Otherwise, start below.**

You’re looking for a [job role or job description], which is exactly what I
specialize in. Talk about a perfect match!

I’ll keep this short and we can go into more detail when we chat.

Before anything else, I know you’re probably curious to see my work.
Please have a look at my portfolio: [insert link to portfolio].

Alternatively, you can also view samples of my work here: [insert link to
website or other online portfolio].

As you can see from my samples, I enjoy working with clients who [insert
statement about taking your niche of work seriously]. I took the time to check
out your website and you certainly fit the bill **insert this statement only if
applicable and you have actually been able to review the website. If possible
mention something specific about their business of website so it proves you
actually have taken the time.** Before we start working together, I will [insert
statement about how you work that demonstrates your professionalism].

Finally, to answer the questions in your job post… **insert this statement
only if the client has asked questions within the job post**

I’d love to chat with you over Skype to see if we’re a good fit for each
other. I’m available [insert exact days, so there is no confusion] between
[times you are available + insert time zone]. My Skype ID is: [insert Skype ID].

I look forward to our chat. Have a great day!

Thanks,
[your name]

Example:

Hi David,

Thanks for inviting me to submit a proposal.

You’re looking for a graphic designer for your advertising and marketing
materials, which is exactly what I specialize in. Talk about a perfect match!

I’ll keep this short and we can go into more detail when we chat.

Before anything else, I know you’re probably curious to see my work.
Please have a look at my portfolio: link to portfolio

Alternatively, you can also view samples of my work here: link to website

As you can see from my samples, I enjoy working with clients who take
good design seriously. I took the time to check out your website and you
certainly fit the bill. Before we start working together, I will review your existing
design assets, discuss software specifications and interview you about your
visual brand. I will also explain my process, my design personality and
creation timelines.

Finally, to answer the questions in your job post, I work on a mac with CC
2017 Adobe software.

I’d love to chat with you over Skype to see if we’re a good fit for each
other. I’m available next Tuesday (9/5) and Wednesday (9/6) between 9am
and 5pm PST. My Skype ID is: [insert Skype ID].

I look forward to our chat. Have a great day!

Thanks,
Jesse

Creative freelancers need to be extra-vigilant about how clients use their work. Just because a client
has paid for the work doesn’t mean they are free to sell, reproduce or alter the original. Creative free-
lancers must determine in what ways we’re comfortable allowing our work to be used or altered – and
then put those guidelines in a contract.
Limited use contracts allow creative freelancers to retain control over their work while granting clients
license to use the work in certain ways for specific amounts of time. If you plan to use the work your-
self, your contract should clearly specify this.
Most templates, like this one by Freelancers Union, provide the basics of an enforceable agreement.
What is the work being completed?
Where and how can it be used?
For what length of time?
Is the license exclusive, or can you license the same work to others?
Can your client modify your work or create other work based on it?
Is the client required to credit you with the work?
Need help dealing with a legal issue? Download the Freelancers Union app to connect with a lawyer
committed to helping freelancers and who understand the freelance life.
Click here to download a Word version of this agreement.
Additional contract clauses can be accessed via our “Next Level Contract Clauses” resource.
D E S I G N , P H O T O , A N D / O R V I D E O
LIMITED USE CONTRACT
TEMPLATE

1. AGREEMENT
This Agreement by and between freelancekit (the “Producer” or “Primary Producer”) and [CLIENT] (“Client” or
“[Another Name]”) is made and entered into as of the last date signed by one of the parties below (the “Effective
Date”). Producer agrees to perform the Services and provide the Deliverables as described herein, and Client
agrees to pay Producer the compensation as described herein. Deliverables include production of ______________
___________________________.
2. SERVICES & DELIVERABLES
The Services to be provided by Producer for projects include [designing web content], producing [video footage]
[designs] [photography] and other media for use in creating the Deliverables. The Deliverables are the work
product of the Services. Producer may hire or subcontract with other individuals or entities at will without consent
from Client in the creation and provision of Services and Deliverables.
Deliverables include production of ___________________________________________.
3. LIMITED RIGHTS ON PROJECTS
Client shall have limited usage copyrights to all copyrightable Deliverables developed by Producer, solely or in
collaboration with others, during the term of this Agreement and arising out of or in connection with performing
the Services under this Agreement, subject to receipt of payment for the compensation as defined in section 4
“Compensation for Projects.” Limited usage includes permission to share the [web content, video footage, designs,
photographs] on Client’s [website, social media, at conferences, trade shows, for internal or external marketing
use] both in whole or partially, and in their original form or any altered state. The Client must obtain written
permission from Producer prior to selling the [photographs, video, design].
If client desires unlimited usage (i.e. usage in a national TV/Radio ad campaign), a new contract will be created to
reflect those desires. Producer shall retain the right to use any future productions in promoting itself and services.
In consideration of the promises between the parties as
referenced herein, the parties agree as follows:
PRODUCER
freelancekit
Street Address
City, State 12345
CLIENT
Client
123 South Ave
City, State 12345
LIMITED USE
CONTRACT TEMPLATE
D E S I G N , P H O T O , A N D / O R V I D E O

4. COMPENSATION ON PROJECTS
To obtain limited usage rights as described in section 3 “Limited Rights on Projects” for all finished projects,
Client agrees to pay Producer $_______________ for performed Services. Producer requires 50% upfront on
signing of contract. 25% is due upon delivery of first rough draft edits for client review and than the last 25% upon
completion of all performed Services.
5. CONFIDENTIALITY
Each party agrees that the terms of this agreement are confidential.
6. SEVERABILITY
If any term of this Agreement is found to be unenforceable or contrary to law, it will be modified to the least extent
necessary to make it enforceable, and the remaining portions of this Agreement will remain in full force and effect.
7. TERM AND TERMINATION
a. Term of Contract: Term shall commence on the [Effective/Start Date] and continue until such time as Producer
notifies Client in writing that the project is complete.
b. Upon termination of this Agreement by Client without Provider’s fault or consent, Client shall pay Provider,
in addition to all of the fees earned by Provider pursuant to the term, an early termination fee equivalent to 40%
of the total remaining fees payable to the Provider, plus any and all expenses and third-party costs reasonably
incurred by Provider through the effective date of the termination. If Client desires to terminate this Agreement
due to Provider’s fault, Client shall give Provider written notice detailing the nature of Provider’s fault and the
Provider shall have a reasonable period of time (but in no event less than 30 days) to cure such fault. Termination
by Client without providing the foregoing notice and cure period shall be considered termination without
Provider’s fault, as described above.
c. If Client commences any legal action against Producer during the term of this contract, Producer shall have the
right to terminate this agreement at its absolute and sole discretion.
8. INDEMNIFICATION
Client agrees to indemnify Producer, and any of its respective successors, licensees, and assigns, from any and all
losses, costs, liabilities, damages, and expenses (including reasonable attorney’s fees) resulting from any breach by
Client of any representation, warranty, and covenant under this agreement. Client will defend the Producer against
any and all claims, liability, damages, and costs, including legal fees & expenses, arising out of the use, or misuse,
of the Deliverables.

9. NATURE OF RELATIONSHIP
a. This agreement is one of an independent contractor and does not constitute any type of partnership, joint
venture or similar undertaking as between the parties.
b. Client shall not provide Producer or any of his/its employees or agents unemployment, medical, disability,
workmans comp or retirement, or be responsible for any local, state or federal taxes. A 1099 will be issued to
Producer as an independent contractor under FEIN ____________, and he shall complete an IRS W-9 form to verify
the same.
10. COLLECTIONS
Client agrees to pay all reasonable attorney’s fees and or other fees or costs if the account is placed with an
attorney for collection.
11. FORUM & CHOICE OF LAW
This agreement shall be governed by the laws of the State of __________________. Any complaint shall be
commenced in the Circuit Court of _________________ County, ________________ and only that court shall have
exclusive jurisdiction over this Agreement.
12. NEUTRAL CONSTRUCTION
This Agreement is the result of negotiations between the parties, none of whom have acted under any duress
or compulsion, whether legal, economic or otherwise. Accordingly, the parties hereby waive the application of
any rule of law that otherwise would be applicable in connection with the construction of this Agreement that
ambiguous or conflicting terms or provisions should be construed against the party who, or whose attorney,
prepared the executed agreement or any earlier draft of same.
Unless the context of this Agreement otherwise clearly requires, references to the plural include the singular and
the singular, the plural. The words “hereof,” “herein,” “hereunder” and similar terms in this Agreement refer to this
Agreement as a whole and not to any particular provision. The section titles and other headings contained in this
Agreement are for reference only and shall not affect in any way the meaning or interpretation of this Agreement.

PRODUCER
SIGNATURE TITLE
PRINT DATE
CLIENT
SIGNATURE TITLE
PRINT DATE
IN WITNESS WHEREOF, the parties have executed this Agreement by their duly authorized representatives:
This contract template addresses many of these questions, and
should help you build a solid foundation to protect your
business and your work. It is not intended to convey or constitute
legal advice. Please consult a lawyer when creating a contract
to ensure it is uniquely suited to your business.
Need help finding a lawyer?
Download the Freelancers Union app to connect with a lawyer
committed to helping freelancers and who understand the
freelance life.

freelancers union
2017/2018 HEALTH INSURANCE GUIDE
Step-by-Step
Guide to Choosing the
Best Plan for You
Picking a new health insurance plan may seem daunting,
but it doesn’t have to be. Here are 6 things to take into
consideration before you start the shopping experience.

Make a list of the things that you feel
are vital to your healthcare plan.
Be sure to consider your medical and financial needs.
Review the costs associated
with health insurance plans
First, familiarize yourself with the terms:
• Copay: A fixed dollar amount that you pay out of pocket for a
medical expense.
• Premium: What you pay each month in order to purchase
insurance. This is, roughly, the “cost” of your plan.
• Coinsurance: The percentage of a medical expense that you are
responsible for paying. The insurance company pays for the rest,
hence “co-insurance.”
• Deductible: The amount you are responsible for paying towards
medical expenses before your insurance coverage “kicks in” to
pay the rest. This resets every year.
• Maximum out-of-pocket: The maximum amount you will be
responsible for paying toward medical expenses covered on
your plan.
The overall cost of your health insurance plan is typically a
combination of the various pricing factors listed above.
For example, plans with higher premiums (monthly payments) will
frequently have lower copays and deductibles.
If you expect to have a lot of medical appointments in the next year, you
may want to sign up for a plan with a higher premium and lower copays.
1
2
2

Check prescription drugs
coverage and cost
Each plan has a Prescription Drug List of covered medications.
The medications are grouped into tiers based on cost. Some
plans will have lower cost thresholds than others.
Check the Prescription Drug list associated with the plans you’re
considering to determine whether your medications are covered.
Access to doctors and care facilities
Every plan has a network of providers, which includes doctors and
care facilities as well as labs, pharmacies, and imaging centers.
If your regular doctor is not in the network of your plan, it’s likely to
cost you more to visit. Be sure to call your doctor before switching
plans to confirm that they will take your new insurance.
If you don’t have a regular doctor, it’s still important to evaluate the
network based on travel times and location as well as peer reviews
of the care providers within the network you’re considering.
Don’t be afraid to make a call to better understand the scope of
your network!
Plan limitations and exclusions
It’s important to know what your plan does not cover. Elective
surgeries and alternative therapies are commonly excluded from
most health care plans.
Many health plans do not cover care provided by someone who is
not in their network.
Dental and vision services typically need to be purchased on
separate insurance plans.
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Health and wellness resources
Some plans offer rebates for various health clubs and facilities. It’s a
perk, but if you’re deciding between two plans, it might make all the
difference. Don’t be afraid to make a call to better understand the
wellness benefits included with your coverage.
When you buy health insurance through Freelancers Union, a
portion of your purchase goes right back to the freelance workforce
– at no additional cost to you.
Shop health plans handpicked by our experts now.
Some plans offer rebates for various health clubs and facilities OR
COVER WELLNESS CARE LIKE ACUPUNCTURE.
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Buying health insurance doesn’t have to suck. Buy insurance from
people who have your back at https://freelancersunion.org/benefits

EIN TAX NUMBER
WHY EVERY FREELANCER SHOULD HAVE AN EMPLOYER IDENTIFICATION NUMBER
freelancers union
TAX RESOURCES
With each new gig, it’s likely that your employer will
ask you to fill out a W-9 for tax purposes. This is a good
sign – it means that your employer is trying to be on the
right side of the tax laws – but it also means that every
time you’re filling out a W-9, you’re giving away a lot
of personal information including your Social Security
number.
Your clients may be scrupulous, but that doesn’t mean
that everyone who comes across their desk is – and if
your information gets in the wrong hands, you could
become a victim of identity theft.
An easy way to protect yourself is to apply for an
Employer Identification Number with the IRS. You can
use their form between 7 a.m. and 10 p.m. ET Monday
through Friday to apply.
HERE’S WHAT YOU NEED TO KNOW BEFORE
YOU APPLY:
• You will apply as a Sole Proprietor
• If you’ve already incorporated your business or be-
came an LLC, then this will not be applicable to you
• You will need to provide your name, address, social
security number, and start-date as a sole proprietor
The application takes less than 10 minutes. The IRS will
send you an EIN as soon as they verify your information.
Voila! Moving forward, you can enter your EIN rather
than your SSN. While you must continue to remain
savvy about your partnerships (business identity theft
is a thing, too), an EIN can go a long way to preventing
identity theft.

FIRST-TIME FREELANCER’S
GUIDE TO TAXES
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TAX RESOURCES

ORGANIZING & PREPARING
The first rule of managing your taxes as a freelancer is to get organized. Meticulous records and deep
knowledge of your business finances can make a big difference on your tax bill. Today, we have access
to a variety of book and record keeping softwares. We recommend a tool like Freshbooks, a cloud-
based accounting solution designed with the freelance lifestyle in mind. Freelancers Union members
can access an exclusive discount here.
Ideally, your organization methods should lay the groundwork for smooth tax preparation – it doesn’t
help if you try to get organized a few days before filing!
Most importantly, be sure to keep track of the following:
1. Your business income
It sounds obvious, but when you’re juggling multiple gigs and receiving invoices from a number of
clients, it can be difficult to keep track of how much has actually gone into your bank account. You will
only receive 1099’s from clients from whom you made upwards of $600, so if you’re doing many small
jobs, you’ll need to be able to report that income yourself.
2. Your business expenses
Again, it sounds like a no-brainer, but when you’re in the zone and have to rush out for more printer
paper, you may forget to notate the expense. But, deductions can alleviate some of the hefty tax
payments freelancers make, so it behooves you to keep receipts from all of your business expenses for
at least 6 years. Be sure to include deductibles like:
• Advertising expenses like business cards, online ads, website subscriptions and other
tools used to promote yourself and your business
• Business insurance
• Interest paid on your business credit card or business loans
• Lawyer fees and other professional services
• Rent or dues on a workspace – if you work from home, be sure to keep up-to-date
pictures or a floor plan of your home office space
• Repairs for your computer, camera and other business-related equipment
• Routine office supplies like pens, paper, staples, etc.
• Travel costs like plane and train tickets related to business purposes
• Business meals with clients and other entertainment reasonable for your business

See our Deductions Guide to determine what business expenses you’ll be able to use to offset your
tax bill.
Find your tax professional
Now that you’ve developed a system for keeping track of business income and expenses, it’s time to
start looking for the right tax professional.
While some freelancers may prefer to do their own taxes, we do recommend engaging the help of an
expert.
• A CPA with experience helping freelancers with taxes can:
• Help you save on tax fees
• Reduce the amount of time you spend on taxes
• Make you less susceptible to an audit
Like all freelance relationships, it’s important that you find a CPA with whom you have good rapport and
feel comfortable allowing into your financials. Trust is imperative in this relationship – and you need to be
able to be honest with your tax professional.
FILING & PAYING YOUR TAXES
By the time you reach tax-paying time, you should have an itemized and organized record of your
earnings and expenses. It’s easy to go cross-eyed just looking at a tax form, but if you’re prepared the
process can be relatively painless.
Pay quarterly estimated taxes
If you’ve ever worked full-time, your taxes are automatically withheld from each paycheck. As a
freelancer, you’re responsible for doing this on your own by paying quarterly estimated taxes.
Use IRS form 1040-ES to file your estimated taxes. As you’ll pay approximately 15.3% of your income
every quarter, it’s helpful to open a savings account wherein you reserve at least ⅓ of your income
specifically for tax purposes. The Electronic Federal Tax Payment System makes this process a little bit
easier.

The schedule for estimated taxes is:
• For income received Jan. 1 through March 31, estimated tax is due April 18.
• For income received April 1 through May 31, estimated tax is due June 15.
• For income received June 1 through Aug. 31, estimated tax is due Sept. 15.
• And for income received Sept. 1 through Dec. 31, estimated tax is due Jan. 17.
Do not assume that you will be able to pay all your taxes at the end of the year in one lump sum – failing
to pay your quarterly earnings will result in fines and penalties. Furthermore, if you miss a quarterly tax
deadline, file as soon as possible and speak with an IRS representative about appealing the penalty. Do
not wait until the next period to pay.
IS INCORPORATION RIGHT FOR ME?
Incorporating into an LLC or an S-Corp may make tax season a little bit easier, but there are still benefits
to remaining a sole proprietor. See our guide on incorporation to determine whether or not this is the
next step for your business.
FORMS TO KNOW
FORM W-9
Your client may ask you to fill out a W-9 when you take a job. Usually, this just means inputting your
name, address, Social Security Number and possibly a tax identification number.
FORM 1099
If you make more than $600 on a given project, your client should send you a 1099 before the tax filing
deadline. It’s simply a summary of the money they’ve paid you, which is the amount on which you will
pay taxes. If you were paid less than $600, or if you did not receive a form from your client, you must still
report that income on Form 1040.
See our guide on Reading Form 1099.

FORM 1040
Because you are reporting self-employment income, you will use the original 1040 form to report your
annual income.
If you have a fairly simple freelance business, use Schedule C-EZ to report your income. This form is
appropriate if:
• Your business expenses are less than $5000
• You have no employees
• You have no physical inventory
• You are not using depreciation or deducting the cost of your home
If your business is more complex, you should use the Schedule C form. Schedule C has 5 parts in which
you’ll be required to calculate your gross profit, your net profit (your earnings minus your expenses).
Additionally, you will have to complete Schedule SE Form – or the self-employment tax form. This also
applies if you have an LLC. This form will determine how much you pay in Social Security and Medicare
taxes. This is a tax you must pay on top of your income tax.
Finally, if you made any capital gains from a sale or trade the previous year, you will need to complete a
Schedule D Form and the additional Form 8949.
Capital assets include personal property such as your home, car, artwork and collectibles. It also
includes investment assets such as stocks and bonds. If you sell a capital asset for gain, you need to
report it on Schedule D. Form 8949 should be filled out first and will require a more detailed report of
the trade or sale.
Disclaimer: This is meant as a guide, not professional advice. If you have any questions about your
taxes or your deductions, hire an accountant or ask a tax professional.

If you’re self-employed or picked up a couple freelance gigs
totaling more than $600 in income, your clients should send you
a 1099-MISC tax form.
Use this annotated guide to determine how to prepare your
1099-MISC form for submission to the IRS.
HOW TO READ A
1099-MISC TAX FORM
freelancers union
TAX RESOURCES

If a client pays you rent for office space or equipment, it will be reported it in Box #1. Only
payments exceeding $600 need to be reported here.
If a client owes you royalties exceeding $10, they will be reported in Box 2. Royalties cover
license fees for copyrights, patents and trademarks.
This is where your client will report “Nonemployee compensation,” ie: how much they’ve
paid you for the work you agreed to do.
If you’re submitting taxes online, all you have to do is input the information in your 1099-MISC and, if
you’re submitting taxes via a tax professional just turn your 1099s over to them.
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1099-MISC FACTS
Who will send me a 1099-MISC?
You should receive a 1099-MISC if you earned over $600 from a single client or employer. Your client or
employer is responsible for sending you the 1099-MISC. Even if they don’t, however, you’re still responsible for
reporting this earned income.
What if I have an LLC or Corporation?
If you’ve set up an LLC or Corporation, the payor is not required to issue a 1099-Misc form to a corporation.
If your LLC is a single owner, you will use Schedule C on your 1040 tax returns.
If your LLC is designated as a partnership, you will use Form 1065 for informational purposes and report all
income, deductions and credits on a Schedule K-1 form.
If you make a corporate tax election for your LLC, the IRS will treat your business as a separate taxpayer. Thus,
the business itself is responsible for reporting income and deductions on Form 1120.
What if I got a 1099-MISC but shouldn’t have?
When your client submits a 1099-MISC, it also goes to the IRS. This means, that the IRS will be expecting
you to report it on your taxes. If your client sent you a 1099 in error, you will have to ask them to resubmit a
“corrected” 1099 with ‘0’ for the amount and also re-submit a Form 1096 summary sheet, which is the form they
submit to transmit their 1099’s to the IRS.
What if I never receive the 1099-MISC?
Because you must file and pay your estimated quarterly taxes on the 15th of January, April, June, and
September, you should receive your 1099s from your clients on a quarterly basis.
If you do not receive your 1099 by the 31st of the prior month, you should get in touch with your client – it’s
possible it went to the wrong address. In any case, you must report the income whether or not you receive a
1099.
Do I need to file a 1099-MISC if I’ve hired other freelancers to work for me?
Yes – file a 1099-MISC to report any payments over $600 made to independent contractors that
you’ve hired.
Disclaimer: This is meant as a guide, not professional advice. If you have any questions about your taxes or your
deductions, hire an accountant or ask a tax professional.

SALES AND USE TAX
FACT SHEET
freelancers union
TAX RESOURCES
BY JONATHAN MEDOWS CPA

As a freelance professional, the burden for ensuring you are in compliance with all tax regulations falls
squarely on your shoulders. One area of taxation that is often misunderstood by those who are self-
employed are the rules applying to sales tax and use tax.
Sales tax: Applies to retail sales of certain tangible personal property and services.
Use tax: Applies to purchases of tangible personal property and services that are made outside of
the state in which they will be ultimately used.
Here are some facts about sales tax and use tax to help you determine how you should handle these
obligations as they apply to your freelance business.
FACT #1: SALES AND USE TAX REGULATIONS VARY BY STATE.
Every state has different requirements for sales tax and use tax. For example, in New York State the
assumption should be that goods being sold are taxable unless they are specifically exempt in the state’s
regulations.
If you sell physical goods and ship them to someone in your same state, then you have to collect (charge
the buyer) sales tax and pay that tax to your state. However, if you ship these goods to another state where
you do not have a tax nexus (see the explanation of tax nexus below) you do not have to collect sales tax
on sales where goods are delivered to an out-of-state address.
For professional services, it is generally safe to assume that your sales are tax-exempt unless your state’s
regulations rule otherwise, but it is still a good idea to double check and become familiar with the sales
tax regulations of the state(s) in which you do business.
FACT #2: FREELANCERS SHOULD DETERMINE THEIR TAX NEXUS AND RESPONSIBILITIES.
From a tax perspective, nexus means that your business has established a presence in an area. Your nexus
may be based on your business presence in a state, however, in some states you have to register by county
or city.
You can have a direct presence by having a store location in a state, hold inventory within a state, or by
living or working in a particular jurisdiction. You can also have a presence through a representative in a
particular area. You may also be considered as having a tax nexus if you have affiliates in a state that you
work with to sell your goods.

FACT #3: THE TYPE OF PRODUCT OR SERVICE YOU OFFER MATTERS WHEN IT COMES TO
SALES TAX.
For many freelance professionals, especially those working in the programming and website development
industry, the line between what is considered a tangible good and what is considered a service for the
purpose of charging sales tax can be quite fuzzy, unless you are a tax professional.
As a rule of thumb, digital work that produces a tangible output such as pre-programmed, non-
customizable software is usually taxable. Work such as website development that produces
downloadable electronic files or the ability to download files may be subject to sales tax (again,
depending on the state in which the sale is being made), but website maintenance would generally be
considered a service on which sales tax would not apply. Conversely, providing maintenance services for
computer hardware in some jurisdictions (such as New York) is taxable. Freelancers should consult with a
tax professional regarding how sales tax should be applied to their specific product and service offerings.
FACT #4: FREELANCERS MAY NEED A SALES TAX PERMIT.
Most states require you to register for a sales tax permit or license for your business if you intend to
engage in the sale of goods or services which require you to collect sales tax and/or use tax.
The permit allows you to charge sales tax on your customers’ purchases so you can collect the necessary
amount for which you will owe when completing a sales tax return. To register for a sales tax permit, you
typically file an application through the department of taxation in your state. After you file the application
and are approved, the state issues your business a certificate including a sales tax identification number.
FACT #5: A SALES TAX EXEMPTION CERTIFICATE MAY HELP FREELANCERS RELIEVE THEIR
RESALE TAX BURDEN.
A sales tax exemption certificate can exempt you from having to pay sales tax on an item that you are
going to resell. To obtain a certificate, a purchaser must first apply for and be granted one by their home
state’s tax authority and provide the required information to sellers they are purchasing resale items from.
The seller can then sell property or services to the purchaser without charging sales tax. However, this
type of certificate is generally used when the end good is sold and subject to sales tax. There are very
specific rules as to when sales tax exemption certificates can be used.
You should also keep in mind that when it comes to sales tax exemption certificates there are usually very
specific regulations about what type of purchaser may use the certificate. In addition, most sellers must
have a valid Certificate of Authority in order to accept an exemption certificate. A properly completed

exemption certificate accepted in good faith protects the seller from liability for the sales tax not collected
from the purchaser. Each state will have its own rules about the use of sales tax exemption certificates. For
example, in New York, sales tax exemption certificates of other states or countries are not valid to claim
exemption from state and local sales taxes.
FACT #6: USE TAX RETURNS ARE APPLICABLE TO FREELANCERS, BUSINESSES AND
CONSUMERS.
Use tax is owed when someone buys a good that is taxable outside of the state where the item will be
used and either sales tax was not collected by the retailer in the selling state or the rate of sales tax is
lower than the sales tax in the home state. For example, if Joe, a New York-based freelancer buys a hard
drive from a company that does not have a tax nexus in New York and the company ships the item to Joe,
the item will be taxable in New York and Joe will owe use tax on it. Another example: Jane, who lives in
New York, buys a computer in New Jersey, and is subject to the state’s sales tax which is lower than that of
New York State. Jane owes a use tax equivalent to the difference between the tax rates of New Jersey
and New York.
The requirement to pay use tax applies to freelancers, consumers and businesses. States such as New
York allow individuals, in lieu of filing a use tax return, to pay use tax based on a percentage of their
personal income. However, this only applies to their personal, non-business purchases and, theoretically,
an individual who is a freelance professional would still be subject to filing a use tax return for
business purchases.
FACT#7: FREELANCERS WHO CHARGE SALES TAX MUST FILE A SALES TAX RETURN.
Like use tax returns, freelance professionals (as well as individuals, sole proprietors, and LLCs) who collect
sales tax must file sales tax returns with their state’s tax authority. The reporting times and frequency vary
by each state. It is advisable to check with a tax professional familiar with your local tax regulations for
guidance on this area.
Jonathan Medows is a New York City based CPA who specializes in taxes and business issues for consultants across the country. His
website, www.cpaforfreelancers.com, has a resource section with how-to articles and information for freelancers.

TAX DEDUCTIONS
OVERVIEW
freelancers union
TAX RESOURCES

As a freelancer, your taxes can get pretty complicated. Welcome to the labyrinthine world of deductions!
Even if you have an accountant prepare your taxes, it’s still a good idea to know what’s possible so you
can make sure you’re keeping track of the right expenses. Below is a very basic overview of some of the
business deductions freelancers typically take.
FORM 1040, SCHEDULE C
Most deductions are filed using Schedule C. Let’s go through it step by step, skipping to Part II.
Line 8: Advertising. This includes any advertising and promotional costs like print or online ads, busi-
ness cards, brochures, and give-away items with your or the company’s name. Include here also any
sponsorships like an ad at your local walkathon.
Line 9: Car and truck expenses. You have two options here.
Option 1: Multiply the number of business miles you drove this year by 57.5 cents. (Do not add up
the money spent on gas this year.) Then add this amount to your parking fees and tolls. Enter this
on Line 9.
Option 2: Fill out form 4562, Section B. This allows you to itemize gas, repairs, insurance,
depreciation, etc.
For a more thorough guide on auto and mileage deductions, please see our Auto and Mileage
Deductions Guide.
Line 10: Fees and commissions. These vary by locality and state, but if you’re a creative freelancer
(artist, photographer, writer, designer, etc.), you probably will leave this blank. It covers medical licenses,
business, and inspection fees.
Line 11: Contract labor. Include on this line the total you spent on other independent contractors or
freelancers for your business. This includes the college student you paid to help organize your office,
the computer guy who helped set up your laptop, or the designer you paid to make your business
cards. Contract labor includes any labor you did not treat as an employee. If you include this on Line 11,
do not include it in any other place on Schedule C. Accountants and lawyers go on Line 17, and if the
contractor repaired your existing business equipment, include that on Line 21.
Line 12: Depletion. Unless you work in a mine or quarry or pine grove, leave this blank.
Line 13: Depreciation. This one can be important for freelancers who use expensive equipment for

their business, like cameras and lighting gear, but also for any freelancer with a laptop. Most freelancers
get to depreciate their equipment over five years (computers, camera equipment, fax machines, etc.) or
seven years, depending on the life of the item. Some qualifying businesses can also take an exception
that allows them to write off the entire cost of the product in the first year the equipment was used.
Line 14: Employee benefit programs. For businesses with employees. Doesn’t apply to
most freelancers.
Line 15: Insurance (other than health). Premiums you paid for various types of business insurance
are deductible here. This includes liability insurance, malpractice insurance, workers’ compensation
insurance, and fire, storm, accident, flood, theft, and other insurance covering your home office.
Line 16: Interest. If you took loans this year for your business, this is an important section. Put the
interest you paid on your loans this year in Line 16. Also include interest you paid on credit card debt.
This will be easier if you have a separate credit card for business expenses. Line 16a allows you to
itemize mortgage interest -- but only on the percentage of your home that qualifies as a home office --
see line 30 for more details.
Line 17: Legal and professional services. The cost of lawyers to set up your business or for litigation
and the cost of any accountants. Include tax preparers, but only for the portion of your taxes related to
your business (yes, this can be hard to determine -- ask your accountant).
Line 18: Office expenses. This includes things like office supplies and postage. Materials, books,
pens, printer paper, and “professional instruments” all apply here. Just total up your receipts and put
it on Line 18.
Line 19: Pension and profit-sharing plans. Only applicable if you have employees, and they have
pension plans, etc. Most freelancers should leave this blank.
Line 20a: Vehicles, machinery, or equipment. Only applicable if you leased a car or professional
equipment. Again, might be applicable to freelance photographers who lease instead of buy. May also
include software that you lease (like some versions of Adobe Creative Suite).
Line 20b: Other business property. If you rent an office or other space, include that here.
Line 21: Repairs and maintenance. If any of your equipment broke and you had it repaired, include
that here. For freelancers, this would most commonly be if your computer broke and you had to repair it.
Line 22: Supplies. Only applicable if you produce a physical product. If you sell journals on Etsy, the
cost of paper and leather may go here. Do not include your inventory. (Leather for a journal seller =
supplies, leather for a leather store = inventory.)
Line 23: Taxes and licenses. You can deduct the following taxes, according to the IRS:

• Real estate taxes on your business property. If you have a home office, you can deduct a
percentage of your real estate taxes on your home. To calculate that percentage, see Line 30.
• Federal unemployment tax
• State and local taxes “imposed on you as the seller of goods or services” -- but only if you didn’t
already collect them from the buyer, which you should put on Line 1.
Line 24a: Travel. If you travel for business -- like staying overnight or being away from home
significantly beyond a normal workday -- you can deduct a few of your expenses. This line should
include transportation and accommodation. Remember, these expenses should only be included
here and not also on Line 9. The IRS does not smile on double counting transportation costs. If you’re
traveling for pleasure and for business, you may only deduct the portion of your travel expenses
corresponding to the portion of your trip relating to business. For instance, if you stay an extra day just to
sightsee, that day’s expenses -- including meals and lodging -- would not be deductible.
Line 24b: Deductible meals and expenses. There are very complicated rules for this, listed here.
Here’s a short version of how to determine what qualifies:
• It has to be an “ordinary expense” that’s “common and accepted” in your profession.
• It has to be a “necessary expense” that’s “helpful and appropriate” to your business.
• It was “directly related,” so it happened in a business space, or the primary goal was to do business
or for a particular business outcome. Note: this does NOT mean that you have to prove that income
resulted from every business meal.
• “Lavish or extravagant” expenses don’t qualify. It has to be “reasonable” in the course of business.
I.e., taking your clients with you on a cruise to Tahiti may not qualify.
Line 25: Utilities. If you have a separate office away from your home, deduct 100% here. If you have a
home office, you can deduct the percentage of your utilities equal to the percentage your home office
takes up in your home overall. To calculate this percentage, see Line 30.
• Phone: If you only have one phone line installed at home, you can’t deduct the cost of that line, but
you can deduct long-distance business calls you make on that line. If you add a second line for your
business, that line is fully deductible. If you only use your cell for business, you need to calculate the
percent you use it for business vs. personal use, and then deduct only the business percentage.
• Heating/Electricity/Gas/Water: Again, only the percent corresponding to your home office.
• Internet: The cost of building, maintaining, and hosting your website or portfolio can be included
here, as well as purchasing the domain name. If you also use your Internet for personal use, deduct
a percent of your monthly Internet bill.
Line 26: Wages. Only applicable if you have employees.
Line 27a: Other expenses. All the stuff that didn’t fit anywhere else. These need to be itemized

in Section V of the same form. If you sell products on services like Etsy or Paypal, you can deduct
transaction fees in this section.
Line 30: Home office. This one can be a doozy, but it’s often worth it. In order to deduct home office
expenses, your office has to be your primary business space “exclusively and regularly.” Whether a full
room or a designated area of one, the office space shouldn’t be used for any other purpose and there
should be no other office where you can work (such as a rented space you’re already deducting).
In short, you need to answer “yes” to one of the following:
• You do most or all of your work there
• You meet clients there frequently
• There’s a separate structure on your property that you use only for business
• You’re using your home to store product samples or inventory
• You operate an at-home day care center for children, the elderly, or people who can’t take
care of themselves.
The deduction is calculated in one of three ways. It might be worthwhile to test all three to see which
gives you the greatest deduction.
#1: By square footage. First, measure the size of your office and then calculate what percentage
your office takes out of your whole home/apartment. For example, if your office area is 200 square
feet and your house is 2,500, then you can deduct 8% of your indirect household expenses. So let’s
say that all together, indirect expenses in your home are $15,000 a year. Because your office takes
up 8% of your home, you’ll be able to deduct 8% of $15,000, or $1,200.
#2: By rooms. You can also try to calculate this percentage based on rooms. If your office is one
room out of 8 in your home, or 12.5%, this would give you a higher deduction.
#3: $5 per square foot. According to the IRS, many people who could take a home-office deduction
haven’t because the rules are too complex. Starting this year, there’s a new, simplified home-office
deduction allows you to deduct $5 for each square foot of home office space, up to a maximum of
300 square feet (for an annual max of $1,500). When filling out Schedule C, just put this amount ($5
x your square footage) on Line 30.
Important tips for home office deductions:
• Do not double count office expenses on lines 16, 25 and 27 AND also include those expenses on
Line 30. Put them on Line 30.
• If you worked from a client’s office for a period of time, you may not be able to deduct home office
expenses for that period.
• Once your office is set up, shoot some photos. This can help support your claim, if questioned.

• Keep any receipts and bills for household expenses you’ll be claiming as deductions.
• The IRS can be quite serious about the “exclusive” use function. This doesn’t prevent you from
taking personal calls at your desk, like you would at a regular office, but it does mean that if your
spouse/children use the same space after-hours, the IRS can reject your claim.
OTHER DEDUCTIONS:
Health insurance premiums: You qualify to deduct your total health care insurance premium costs only
if you were not eligible to enroll in an employee plan or a plan through your spouse. You can claim this
deduction on Line 1 of Schedule A form 1040.
Educational expenses: If you took classes to improve or maintain necessary skills for your business, you
can deduct education costs. You can’t deduct education costs for learning a new trade unrelated to your
business. You’d deduct this on Line 21 of Schedule A form 1040.
Self-employment tax: You can deduct half the cost of Medicare and Social Security tax (the portion
your employer normally pays for) on form 1040 Line 58.
Unpaid invoices: You can write off the total amount of unpaid invoices as bad debt on Line 6 of
Schedule C form 1040 -- but only if you already recorded it as income. This would only be the case if
you record any outgoing work as a sale, called “accrual” accounting. Most freelancers operate on a cash
basis, reporting only the income that they received from clients, in which case you would not be able to
take unpaid invoices as a deduction.

Healthy tax habits aren’t just for Uncle Sam. Keeping track of your finances enables you to make objective
decisions about your business and stay ahead of the game!
And, in the case that the IRS does have questions about your wild, wild, freelance lifestyle, you’ll be pre-
pared to pull back the curtain and let them know your business is no rodeo. Use this checklist as a guide
for implementing healthy tax habits in your day-to-day.
I use an accounting software to keep track of my expenses and revenue.
I set aside at least 1/3 of every paycheck for taxes in a separate savings account.
I have an accounting system and therefore know who owes me money.
I keep all my receipts from at least 6 years back.
I have photos of my workspace and other deductions.
I regularly pay estimated taxes in April/June/September/January.
I’ve set up an entity/properly structured my business.
I report based on received, not earned income.
I’m prepared to file tax returns in the state where I live, and the states where my client’s businesses are
located (if I did work there).
I don’t have 1099s from my clients but I’m self-reporting my income anyway.
I’m not prepared so I filed for an extension!
HEALTHY TAX HABITS:
A CHECKLIST
freelancers union
TAX RESOURCES
Disclaimer: This is meant as a guide, not professional advice. If you have any questions about your taxes or your
deductions, hire an accountant or ask a tax professional.

freelancers union
A Healthcare
Glossary

What you pay each month for your insurance plan.
The amount you are responsible for paying towards medical
expenses before your insurance benefits kick in to pay the rest. This
resets every year on January 1st. While meeting your deductible,
keep in mind that the amount you pay will reflect the discount that
your insurance company has negotiated with the doctor.
In general, plans with higher premiums will have lower deductibles,
and vice versa. This means that usually on plans with a lower monthly
cost, you will be responsible for more of the costs of healthcare
services before the insurance company begins to kick in their part of
the payment.
The percentage of a medical expense that you are responsible
for paying. The insurance company pays for the rest, hence “co-
insurance.” (Again, keep in mind that the expense will reflect the
discounted amount negotiated between the insurance company
and the doctor.)
A fixed dollar amount that you pay out of pocket for a medical
expense; for example, a visit to the doctor might require a copay
of $35.
The maximum amount you will be responsible for paying toward
medical expenses covered by your plan. Your out of pocket
maximum includes copays, charges applied toward the deductible,
and coinsurance you have paid over the year for both medical and
pharmacy. Once you’ve reached your out of pocket maximum for the
year, your insurance will pay the rest of covered expenses at 100%.
If you receive services that are not covered by your plan, you will
be responsible for paying for those services. For example, cosmetic
surgery or an out of network doctor.
2
Premium
Deductible
Co-Insurance
Co-Payment (“Copay”)
Out of Pocket Maximum

An HMO plan is a plan that provides benefits for services rendered
by in-network doctors, hospitals and other healthcare providers.
You will need to select a Primary Care Physician (PCP) for all of your
basic healthcare needs. If you need to see a specialist, such as a
cardiologist or an orthopedic doctor, you will need to get a referral
from your PCP. In cases where you need to seek emergency, life-
saving treatment, you do not need a referral. If you receive any
non-emergency care without a referral, or if you go outside of the
network for any non-emergency services, your plan will not cover
those services and you will be responsible for any charges you incur.
Any charges you pay for services not covered by your plan will not
accumulate towards your out of pocket maximum.
A PPO is a health insurance plan that also relies on a network of
healthcare providers. However, it offers more flexibility when it
comes to getting out-of-network coverage and will sometimes pay
for out of network care, though usually at a lower rate. PPO plans
may have higher premiums and deductibles and are not available
to individuals in all locations. For example, the only way to access a
PPO plan in the New York City area is to enroll in health insurance
through a special group plan.
With an EPO plan you don’t need to choose a primary care
physician, and you don’t need referrals to see a specialist. However,
you’ll have a limited network of doctors and hospitals to choose
from, and EPO plans don’t cover care outside your network unless
it’s an emergency.
Things like vaccinations; annual check-ups and wellness visits,
screenings for depression, cancer, or alcohol misuse; diet counseling;
and a number of other things qualify as preventive care. This is
because they’re intended to find and nip issues in the bud before
you get sick! For a list of services that may be considered preventive
care, visit: https://www.healthcare.gov/preventive-care-benefits/.
3
HMO (Health Maintenance
Organization)
PPO (Preferred Provider
Organization)
EPO (Exclusive Provider
Organization)
Preventive Care

Essential health benefits are things that all ACA-compliant insurance
plans are required to cover, and include services such as wellness
visits and preventive care. Under the regulation, each State is
responsible for helping to set the standard for benefits in their
region.
The 10 EHB categories are:
• Care at a doctor’s office
• Emergency services
• Hospital care
• Pregnant mother and baby care
• Mental health and addiction treatment
• Prescription drugs
• Rehab and skill development services and devices
• Lab services
• Preventive & wellness services and long-lasting
disease management
• Dental and vision care for children
Open Enrollment is the one time per year when health insurance
plans are openly accepting new enrollments. This is when you
can pick your health insurance coverage for the upcoming year,
including selecting a new plan and/or adding or removing
dependents to your coverage. For 2017/2018, the open enrollment
period goes from November 1, 2017, to January 31, 2018. In
order to enroll in new coverage outside of this time window, you
must have a qualifying event (such as moving to a new service
area; certain changes in income; or a change in family size such
as a marriage, divorce or new baby). For more information about
qualifying events, please
visit https://healthcare.gov.
4
EHB (Essential Health
Benefit)
Open Enrollment

Under the Affordable Care Act, all health plans now include
coverage for prescription drugs. However, the amount of coverage
may differ from one prescription to the next and you will often see
prescription coverage described in terms of “tiers.” If you are on
a specific medication, you should check your insurance carrier’s
formulary to make sure it will be covered and to see which “tier” it
may fall into:
Tier 1 - these are typically generic and other common prescription
drugs. Depending on your carrier’s specific policies, Tier 1 may
also include some cost-effective brand-name drugs for common
conditions.
Tier 2 - these are typically brand-name prescription drugs on your
carrier’s formulary
Tier 3 - these are typically less common and more high cost prescription
medications that may be needed for certain conditions, including
prescriptions that may need to purchased from a specialty pharmacy
A list of all prescription drugs covered by a plan’s pharmacy benefit.
The decision to cover a brand name or generic drug is made
exclusively by the insurance carrier and is usually developed by a
panel of physicians and pharmacists to ensure there are sufficient
options in each drug class. This list is usually provided on the
insurance carrier’s website and is subject to change at any time. A
formulary may vary from carrier to carrier, so it’s best to contact your
carrier directly to inquire about any medications you may be on.
The Affordable Care Act created a new type of plan designed
specifically for adults under the age of 30 (and those meeting certain
“hardship exemption” criteria). Generally, catastrophic plans have
significantly lower premiums than other comparable plan designs
and have almost all services apply to a single deductible. You can
learn more about catastrophic plans here.
5
Pharmacy Tiers
Formulary
Catastrophic Plan

freelancers union
SUBSIDY
GUIDE
Looking for an insurance plan for 2018? It’s possible that you
qualify for a subsidy via the Affordable Care Act.
Read on to found out if you qualify! And if you do, all you have
to do is choose a plan via the Freelancers Union platform, go
through the enrollment process and your subsidy will apply.
If you have any trouble, we recommend calling the carrier to
determine the status of your subsidy.

WHAT’S A SUBSIDY?
A subsidy is financial assistance for buying health insurance on the Health
Insurance Marketplace (also known as the exchange, or “Obamacare”).
In other words, your subsidy helps pay for some of your monthly health
insurance costs.
Here are 3 things that determine if you are eligible:
• How much health insurance costs where you live
• What your income will be in 2018
• Your household size
There are a number of third-party websites that can help you figure out
if you qualify for a subsidy. Try using the calculator at the Kaiser Family
Foundation to find out if you qualify for a subsidy.
Generally, you can make up to 400% the federal poverty level in order to
qualify for the advance premium tax credit. For an individual, this is around
$46,000. For a family of four, that’s around $95,000. If you make less than
this, you will probably be eligible for a subsidy!
I QUALIFY FOR A SUBSIDY. WHAT NOW?
You can apply your subsidy in different ways:
If you buy health insurance using the advance premium tax credit, you can
apply
the credit directly to the health plan in which you enroll.
There are three different ways you can use the advance premium tax credit:
• You can apply the advance premium tax credit equally throughout the
entire year, so that your monthly premiums for your health insurance are
lower
• You can choose to get the entire advance premium tax credit back as part
of a tax return at the end of the year
• You can use only some of your credit during the year and get some of it
back in a tax return at the end of the year
Please note:
In order to receive
your subsidy, you
must choose a health
plan by December
15th, 2017.
2

Depending on where you live, Freelancers Union may be able to help you
apply a subsidy towards a plan. Search on our Health Benefits Platform to
see which plans are available through Freelancers Union in your area.
OK, BUT ESTIMATING MY INCOME IS... IMPOSSIBLE.
For many freelancers, income can vary each year, and you never know how
much you’re going to make... until you actually make it. Honestly, the subsidy
process probably wasn’t designed with freelancers in mind.
For most people, that “estimated income” number (which you may see listed
as “MAGI”), will be the same as the Adjusted Gross Income (AGI) reported
on your federal tax return (Line 37 on Form 1040, Line 4 on Form 1040-EZ,
and Line 21 on Form 1040A). If you expect to make about the same in 2018,
you may want to use that number.
But if you expect to make more or less this year, the government expects
you to make your best educated guess. Yup, guess. You may want to start
with your 2016 AGI and add or subtract to come to the right number.
WHAT IF I ESTIMATE WRONG?
The good thing to know is that if you estimate either too high or too low,
you’re not going to “get in trouble”. The government will try to match your
estimated income to your tax statements, but they’re focused on catching
big errors, like a person who makes $150,000 a year and but says they’re
unemployed.
If you estimate too low, you will receive the rest of your premium tax credit
as a credit on your tax return and may receive a tax refund.
If you estimate too high, you may be required to pay back some of your
subsidy to the government. This would be charged directly to your end-of-
year taxes (or be subtracted from your tax return).
If this seems like a huge headache and you can afford to do so, it might be
a good idea to receive your subsidy as a tax credit at the end of the year,
rather than applying it to your monthly premium.
Consumers Union
has a very good
guide on how to
estimate your self-
employment income
3

WHAT IF THE GOVERNMENT ASKS ME FOR PROOF OF INCOME?
When you’re applying for a subsidy, if you give an amount lower than your
2016 AGI, you may be required to submit additional documentation proving
your lower income for 2017.
Here are some acceptable forms of documentation for freelancers (from
Consumers Union):
• Most recent 1099-MISC
• Most recent quarterly or year-to-date profit and loss statement
• Bookkeeping records or a self-prepared ledger that shows income and
deductible expenses
• Bank statement showing deposits and expenses from your business
WHAT HAPPENS IF I DON’T QUALIFY FOR A SUBSIDY?
To see what plans are available through Freelancers Union, search by state
on our platform. When you buy through us, a portion of your purchase goes
back to the independent workforce, at no additional cost to you.
We fight for better policies for freelancers every day – and now, more than
ever, it’s important that we stand together to ensure that the next system
works for us.
4

freelancers union
HEALTH
INSURANCE
FAQ’S
If only choosing health insurance was like picking out a Netflix plan! Here at
Freelancers Union, we try to make it as easy as that.
As an advocate for our members, our mission is to protect and improve the lives of
independent workers.
Part of that means helping you navigate the insurance industry as well as
connecting you to quality coverage at an affordable price for the freelance lifestyle.
Additionally, when it comes to insurance, we’re experts: We have over twenty years
experience connecting freelancers to the right insurance plan.
We offer a range of plans through a National Benefits Platform – and when you
purchase through us, you support the ultimate goal of creating a benefits system
that makes sense for freelancers.
Plus, by buying through us, you help sustain the union’s advocacy, support and
community involvement and can rest assured that we’re here for you if you ever
have questions about your health plan.
But, however you choose to purchase health insurance, we’re here to help you
understand the ins-and-outs of different plans and find one that is right for you.

Do I really need health insurance?
Yes. It’s not only good for you, but, under the
Affordable Care Act (aka Obamacare), it’s also
required that everyone get health insurance.
The penalty for not having health insurance in 2016
and 2017 was pretty significant -- it’s 2.5% of your
total yearly household adjusted gross income or
$695 per adult / $347.50 per child, up to a maximum
of $2,085 for the year, whichever was higher. In 2017,
the maximum penalty will be adjusted for inflation,
but will remain about the same.
I got a notice that my plan is ending.
How do I find a new plan?
Since health reform launched in 2014, there have
a been a lot of changes in what plans are available
each year. If your plan is ending, you have
until December 15 to pick a new plan. Starting
November 1, you can shop for a new plan on our
benefits platform.
I think I’m eligible for a subsidy.
What can I do?
Under the ACA, if you make less than about
$45,000 as an individual (or $94,200 for a family
of four), you may be eligible for a subsidy or tax
credit towards your health plan.
This is great news for many middle- and low-
income freelancers. You can get an estimate of
what subsidies you might qualify for by using this
great Kaiser Family Foundation subsidy calculator.
If you think are eligible for a subsidy, rest assured
that our platform will likely connect you to your
local exchange to access financial support.
However, this ability is not available in every state.
When can I enroll in health insurance?
Open enrollment for 2018 coverage begins
November 1, 2017 and ends December 15, 2017.
During this time, you can enroll in a new plan or
change your current plan.
To make sure coverage for 2018 is in place on
January 1st, you will need to enroll and pay for the
new plan by December 15, 2017.
What kind of plans are out there?
Under the Affordable Care Act, insurance plans for
individuals are always offered at five metal tiers:
• Catastrophic
(available for those under 30 years old)
• Bronze
• Silver
• Gold
• Platinum
As you might guess, higher metal tiers (shinier
metals!) are usually more expensive upfront but
the total amount you pay for covered services will
be lower.
Lower tiers (catastrophic and bronze) have lower
monthly premiums but you will pay a higher
total amount of the covered medical expenses
throughout the year.
Please note that all of the plans cover the same
kinds of services. The portion of the costs of your
health care services that insurance will pay will
vary based on the type of plan you buy.
2

Can I enroll at a different time?
Yes, but only if you have a special circumstance
which makes you eligible for a special
enrollment period.
These special circumstances include:
• Gaining or becoming a dependent
• Losing existing health coverage (through job
loss, separation from a spouse, etc)
• Expiration of COBRA
• Loss of eligibility for or expiration of a student
health plan
• A permanent move or relocation to an area
with different health plans
• Dramatic change in income that affects
your eligibility for tax credits or cost sharing
reductions.
If any of these special circumstances sound like
you, you may be eligible for a special enrollment
period. And even if they don’t, it’s good to keep
them in mind. Freelancing can be up and down,
and if you find yourself needing new coverage,
remember that you might be eligible to enroll
outside of open enrollment! BUT, if you don’t
enroll by December 15, and you don’t have a
qualifying event that will allow you to enroll during
a special enrollment period, you will be locked
out and unable to buy health insurance until Open
Enrollment for 2019.
What if I have a pre-existing condition?
The ACA made it illegal for insurance companies
to charge you higher premiums for a pre-existing
health condition or to deny claims for treatment of
a pre-existing condition. No one is allowed to ask
about your health history any more and/or try to
make you pay more.
Where can I find health insurance?
You have three options:
• Our Freelancers Insurance Agency’s National
Benefits Platform, which provides a curated
selection of health insurance options for
freelancers across the country
• Your state’s health insurance marketplace (you
can see a directory of state exchanges and the
federal exchange at healthcare.gov)
• The websites of individual private insurance
plans
Hold on, what do all these insurance
terms mean?
Here’s a glossary of some health insurance lingo to
help you through the enrollment process.
Where should I go if I have questions?
Start by viewing your options at
https://freelancersunion.org/health.
If you have specific questions about a particular
plan, go right to the source and call the carrier to
get the best and fastest answer. (We post special
phone numbers for carriers when we have them.)
You can also email us at membership@
freelancersunion.org and we’ll respond as quickly
as we can. So go forth and get covered! And
spread the safety net: share our National Benefits
Platform and tell your friends to get health
insurance, too.
3

THE
FREELANCE
TOOLBOX
www.thefreelancekit.com
ORGANISATION, MARKETING,
SOCIAL MEDIA AND MORE!
40TOOLS

www.thefreelancekit.com 2
Thank you for downloading your free toolbox. We’ve included
40 tools to help you manage your freelance or small business.

We hope you find it useful and if you want to buy
The Freelance Kit then click here!
The Freelance Kit is a pack of high-quality business templates and
documents, designed to help you in your freelance or small business,
no matter what stage you’re at. The kit includes business planning,
content and social media planning, financial templates, project
management, general planning and, consists of a mix of PDF’s
along with some good old-fashioned spreadsheets.
We’ve curated over 130 pages of content which will save you time
trawling the internet for those templates that seem to be so hard
to find. When you purchase the kit, you’ll also join a private Facebook
group where you’ll have access to as much support as you need,
be able to meet other freelancers and have first dibs
on freelance and small business retreats and events.

SOCIAL MEDIA
ORGANISATION
Hootsuite
For your social media dashboard
and scheduling.
Google Drive Store and share documents easily.
LinkedIn
To build your contacts and business
relationships.
Trello Plan out your projects and tasks.
Flipbook To source trending content quickly.
WeTransfer Send large files.
Skype To talk to clients and connections.
Dropbox Store and send large files.
Grum To schedule content to Instagram.
iCloud Store documents, images and video.
Planoly
To visually plan your Instagram feed.
Some great functions including drag
and drop.
Google Docs
Create and share documents easily
including Word, Powerpoint and Excel.
2

MONEY AND LEGAL
FREELANCING / PROJECT MANAGEMENT
FreeAgent
Brilliant platform that manages
finances, keeps track of overdue
invoices and monitors time spent
on projects and clients.
Toggl Time tracking software.
Quickbooks Similar to FreeAgent.
RescueTime
Monitors internet useage and
time and makes suggestions to
improve productivity.
Shake Free legal documents.
Facebook Workplace
Brilliant way to share project
information and news with others.
Asana
A project management app that
enables you to organise yourself
and your remote team.
TermsFeed
Generates privacy policies, terms
and conditions.
3

MARKETING
DESIGN, IMAGES ANDWRITING
Campaign Monitor Design and send beautiful newsletters.
Canva
Create amazing images, presentations,
social media assets and more.
Lead Pages
Build landing pages that convert to
sales or newsletter sign ups.
Word Swag
Generate quotes and words using
your photos.
Google Analytics
Keep track of your website traffic
and statistics.
Pexels Amazing source for royalty free images.
LinkedIn
Export your contacts data and build
your email list.
Etsy
Buy branding packs, colour palettes
and business templates.
Moz Keyword finder.
Hemingway An app that helps you be a better writer.
Yoast SEO
Wordpress plugin that optimises
your website SEO.
Grammarly
Brilliant online, advanced grammar
and spell checker.
4

WELLBEING
TRAVEL
Headspace
Amazing meditation app that’s
suitable for all levels.
Work Hard Anywhere
A community of creatives, freelancers,
and entrepreneurs who work together
to promote the coolest and best
spaces to work from.
Anxiety Relief
A brilliant app that helps relieve
anxiety and promotes calm.
Remote Year
Allows freelancers to travel the world
for a year or 4 months as a group,
combining co-working and travelling.
Such an amazing initiative!
Map My Run
Exercise is important, especially
when you work from home! Map
my run monitors how far you walk
or run and monitors fitness levels.
We Work
Cool co-working spaces located
around the world.
Travello
A social networking app that allows
you to find other nearby working
travellers.
Sleep Cycle
An intelligent alarm clock that
analyses your sleep and wakes
you in the lightest sleep phase.
5

    

Freelancing in the_digital_age_july_2018

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