Every freelancer I meet seems to forget about quarterly taxes until April
I swear, every time I chat with another freelancer at a co-working spot or online, they mention they just set aside 30% at the end of the year and hope for the best. Last week I talked to a graphic designer in Austin who owed $4,200 and had no idea why. I've been doing this 8 years now, and I learned the hard way after getting hit with a $600 penalty my second year. You gotta pay those estimated taxes every 3 months or the IRS will nail you. Anyone else sick of hearing people freak out about this every spring?
Used to roll my eyes at that strategy but honestly seeing it work for a few people changed my mind. The separate account thing really does make a difference psychologically I guess. Your mileage may vary but it's worth a shot.