By Pat Howard

I hope you’ve been saving your receipts, because it’s that time of year again.

I recently received the following email from a friend, college classmate, and fellow freelancer:

Tax time is here again. This year, for the first time, I owe the government money. I’ve been doing my taxes with Turbo Tax, but I’m wondering, as someone who’s both a freelance writer and a part-time employee, should I have an accountant do my taxes instead?

It seems easy enough to plug in the numbers and fill in the spaces and Turbo Tax seems pretty reliable when it comes to deductions. I’m thinking of filing an extension so I can come up with the money.

What would you suggest I do this year to prepare for 2013 taxes? I want to be successful as a freelance writer, but at the same time it seems like the more I make the more I have to pay. Thoughts? Tips?

Are you ready for tax season? Will you use software or an accountant?

It’s a challenge we all face in some form as April approaches and the tax deadline looms over us. There are lots of great questions in this email, and though I make no claims to math wizardry or finance skills, I can draw on my experiences in the last year or so in giving my perspective as a still growing freelance writer.

I used an online tax prep thing all through college, up until 2010. Last year, I decided to find an accountant to help me. There are so many more ins and outs when it comes to freelance work (and in St. Louis, I have to deal with federal, state, and city taxes) that I’m much more confident in the hands of a professional.

Deductions

It’s helpful if you can find someone who will help you understand the deductions you qualify for, when it comes to equipment and whatever you use as your home office. Even mileage or public transportation, when it’s work-related, is generally deductible. If nothing else, professional advice will give you an idea of what to keep track of going forward. I’ve been hoarding tax-eligible receipts all year in my email.

Expenses

I understand the conundrum in terms of costing more money…from business licenses to incidental expenses and quarterly tax payments, the reality that freelance writing is a business seems most serious when you’re staring at your tax returns.

Accountants

Shop around for an accountant. I got multiple quotes and wound up going with a great referral I received through Twitter. My accountant handles my returns as well as any advice I need throughout the year. I plan on using the same accountant for my 2011 taxes this year. Check out your local library for tax resources and potential free tax assistance.

Quarterly Tax Payments

Also, making quarterly estimated tax payments going forward is something it wouldn’t hurt to get professional advice about, especially if you’re uncertain about your responsibilities or options.

Tax Software Vs Accountant

All in all, I think a freelancer’s needs are beyond the capabilities of basic consumer tax software, and it’s worth looking around to find out what your options are.

What do you all think? Veterans, what tax advice do you have for newbies? Newer freelancers, what questions are you struggling with this tax season? Share them in the comments.