Taxes suck. The end.
One of the most painful parts of being a freelancer is dealing with taxes on your own. It’s great to get that paycheck from your client, then you suddenly realize that you should take out about 25 percent to pay the IRS. OUCH! Ideally, the solution is that every time you receive income, you should take out the amount you need to pay taxes. For those who have this down to a science, please tell us how you have the discipline. If you’re one of those who have a hard time saving your taxes, Painless 1099 has the solution.
What is Painless 1099?
Painless 1099 is a service in beta testing which connects with your bank account. It automatically takes out the taxes, puts the money into a separate account, then releases the remaining amount to your account. You own the money the entire time, but when you’re ready to pay quarterly taxes, it’s there. The money is in an account that is FDIC certified and insured up to $250,000.
Account holders do need to be eligible to open a bank account in the US, which means you need to be older than 18, have a social security number, and a way to prove your identity and address. Painless 1099 is not a bank, but it is a service which links you to a bank to save money.
Painless 1099 is a fairly young company headquartered in Buffalo, NY. According to Crunchbase, the founders are Matthew Russo, Justin Kauszler, and ACe Callwood (sic). On the Painless 1099 website, the company lists that they eventually hope to have a more user-friendly platform which lets freelancers track expenses too. Currently, the service is free, but they could move to a fee-based platform as the program evolves. Check it out to see if it might benefit your small business.