Creating and Selling Digital Products

It is now official. The U.S. federal government will require nearly all payments to and from federal agencies—including the IRS and Social Security Administration—to be made electronically. Essentially, refunds are being moved to e-refunds for the coming tax season and in the next two years, the IRS is anticipated to phase out accepting payments via check. The IRS provides several electronic payment options for freelance businesses. To prepare for this change in your freelance business, it is important to familiarize yourself with electronic payment methods including IRS Direct Pay, which allows free payments from your bank account, and the Electronic Federal Tax Payment …

Towards the end of 2025, we circulated a survey to our members, asking how they as freelancers will be affected by the expiration of the Affordable Care Act enhanced subsidies. Of the over 600 respondents, 58% said that they purchase their healthcare plan through the state marketplace. Seventy-seven percent of freelancers said that without the ACA enhanced subsidies, they would lose coverage, downgrade their plans, or need to cut back on essential spending, like housing, groceries, and transportation. Freelancers are overwhelmingly in support of the Affordable Care Act subsidies, with 91% of respondents saying they want to see the ACA subsidies extended. Whether or not f…

Whether you’re self-employed or employed and work in a tipped profession, there is a new opportunity to lower your federal income tax bill—thanks to the newly enacted 'One Big Beautiful Bill Act (OBBBA).' For the first time, qualifying freelancers can deduct up to $25,000 in tips from their taxable income starting in tax year 2025, but as of right now, this deduction only qualifies until 2028. But before you celebrate, let’s unpack what this means and how to make it work for you. What’s New Under 'OBBBA' The “No Tax on Tips” provision applies to federal income tax only. That means while you can deduct tips from your taxable income, they still count toward your self-employ…

Tax Day (April 15, 2025) is just days away. Are you still scrambling to gather tax documents and get your return filed? If you just can’t complete your return accurately, you may be better off simply filing an extension with the IRS. Doing so allows you to have a six-month grace period to get your taxes filed without having the failure to file penalty assessed. However, you must still pay any taxes you owe (make an estimate and pay on or before April 15, 2025) to avoid late payment penalties and interest. Filing an extension can help reduce the stress of trying to meet the deadline and reduce your tax penalty burden if you already have one to contend with. Many taxpayers,…

One Year Since the Relaunch of the World’s Longest Invoice, Nonpayment Remains a National Crisis One year ago, we relaunched the World’s Longest Invoice to shine a light on one of the most pervasive issues facing independent workers. Since then, the numbers have only grown and they tell a sobering story. In just twelve months, over 1000 freelancers from 44 states have added their names and invoices to the campaign. Together, they’ve reported more than $7.4 million in unpaid wages. These aren’t edge cases or one-off mistakes. They’re evidence of a system that continues to allow clients to delay, avoid, or deny payment with little consequence. Freelancers from nearly every …

Your office can be anywhere you choose to set up your laptop. Traditional employees may remain stuck in whatever city their employer chooses, but you have something invaluable: complete geographic freedom. Moving opens doors to lower living costs, fresh creative inspiration, and access to markets that might remain out of reach from your current spot. Whether you're seeking financial relief from rising local expenses, craving a change of scenery to spark new ideas, or hoping to position yourself closer to ideal clients, your next ZIP code could become your smartest business move. Writing, makeup artistry, photography, event coordination, and tour guide work represent just…

There are two sides to every coin, and that includes freelancing. While you can enjoy flexible working hours, no commuting benefits, office-free attendance, and many other perks, you might encounter issues with burnout if you lack the right planning and strategizing methods. But there are specific approaches you can use to stop burnout before it starts or recover from it when it’s affecting your output; you can do this with a few specific apps that will help you organize your time and enhance your mood. Ready to discover which impressive apps can help with this? Nip freelancer burnout in the bud with the list of apps in this article and the top tips for success. What is …

One of the most challenging parts of freelancing is figuring out what you’re going to do about healthcare. Unlike traditional workplaces, which provide employees with healthcare plans, freelancers typically do not receive insurance plans from their clients. This can often leave freelancers in a precarious position, forcing them to pay high out-of-pocket prices for health insurance plans, relying on a partner’s employer healthcare coverage, or in certain cases, forgoing insurance entirely. New legislation seeks to change this, clearing barriers for clients to disperse money into an independent worker’s account to use for healthcare and other benefits like time off. These a…

This article is posted with permission from our partner MacPaw. MacPaw makes Mac + iOS apps that have been installed on over 30 million devices worldwide. Freelancers Union members receive 30 days of free unlimited access to CleanMyMacX and Setapp: https://freelancersunion.org/resources/perks/macpaw/ Have you noticed that sometimes, a simple online daily task can still be time-consuming? You might want to get it done without taking up too much time and really wish for an incredibly quick way to handle them. Now, this might prompt you to think about delegating some of your routine online freelance tasks to someone, which can still take time. But what if you had some of the…

Have questions about Aflac? Attend our informational session on 2/11/25 to learn more! RSVP HERE Life is unpredictable, and unexpected health events can put a strain on even the most carefully managed budgets. As part of our commitment to supporting independent workers, we’ve partnered with Aflac to create a group plan to provide you access to their supplemental insurance plans at a lower cost. These plans provide an added layer of financial protection, helping you and your family navigate challenging times without added stress. Aflac is not health insurance, but supplemental benefits that offer you financial assistance for medical situations. Based on the plan you choose…

If you’re a freelancer earning income through a business entity and living in a high-tax state like New York, understanding the Pass-Through Entity Tax (PTET) and its role in offsetting federal tax limitations could directly impact your bottom line. This is especially true with the recent passage of The President’s One Big Beautiful Bill (OBBB) which provides sweeping tax reform and expanded tax advantages at both the state and federal levels. Now is the time for freelancers to explore the benefits of strategic entity structuring and SALT workarounds. What Is PTET?The PTET is a state-level workaround created in response to the State and Local Tax (SALT) deduction cap impl…

This article is posted with permission from our partner Solo Health Collective. Learn more about Solo at: https://freelancersunion.org/solo Freelancers and independent contractors often struggle to find an affordable, high-quality health plan. Traditional plans can be expensive, lack flexibility, or offer minimal benefits for self-employed individuals. Freelancers Union partner, Solo Health Collective, is a unique health plan designed specifically for freelancers, solopreneurs, and small business owners. Here’s how it can provide significant tax advantages—and why it’s a great option for independent professionals. Tax Advantages for FreelancersOne of the biggest benefits …

The recent wildfires in Los Angeles have been devastating, affecting countless lives and communities across the city. Our hearts go out to those impacted by this tragedy, including the members of the Freelancers Union whose lives have been upended by this crisis. To support our members and the larger Los Angeles community, we want to highlight several resources that are available to help: Mutual Aid LA Network (MALAN): This grassroots network is dedicated to providing community-based support during crises. MALAN offers a variety of resources, including financial assistance, shelter options, and volunteer support for individuals affected by the wildfires. You can access th…

Sales tax: What is it and do freelancers have to pay it? Sales tax is a state-level tax imposed on the sale of goods and, in many states, certain services. Unlike income tax, which you pay out of your own earnings, sales tax is something you collect from your customer and then pass along to the state. In other words, you’re acting as a temporary steward of the state’s money, not paying a tax out of your own pocket. However, not every freelancer is required to collect sales tax. Whether you need to collect sales tax depends on what you sell, where you sell it, and whether your state taxes the type of service or product you offer. Sales tax rules vary dramatically from stat…

“I just get really anxious saying no, sometimes,” a client shared with me recently. As a career coach I often hear this sentiment from clients who are struggling to maintain their professional boundaries. Past experiences where saying ‘no’ was met with rebuke or criticism, have made many of us very cautious with this word. Some of us avoid it altogether. For us freelancers, this disconnect from our ‘no’ can be especially destabilizing: we’ll take on projects we know are not a good fit, appease clients who make unreasonable requests, or accept unethical behavior from our associates. As this kind of misalignment grows, our energy drains. And as these burdens lead us into p…

This post is brought to you by our partners at TaxAct. It initially appeared on their blog. There are many similarities between being self-employed and being a small business owner. Both allow you to be your own boss, for one thing! But in the eyes of the IRS, your formal business classification can mean very different things when it comes to filing your taxes and reporting your business income. Here’s how to determine which category you fall under as an entrepreneur and how it will impact your taxes. Self-employed vs small business owner: Understanding the differenceThe simplest way to differentiate between being self-employed and being a small business owner is to look …

If you’re like most freelancers, many of your best clients come from referrals, word of mouth, and your network. But this is a recipe for feast-and-famine months. Your network is finite. If something unexpected happens — like a client has to reduce your hours or end a contract early — you could have a dip in income without a warm pipeline of high-quality leads. If you’ve never done proactive marketing and lead generation before, you’re not alone. Freelancers and consultants often come to me after three, five, even ten successful years in business because their referrals dry up and they realize they never built a proactive marketing strategy. Believe me, I’ve heard it all.…

The One Big Beautiful Bill has introduced a series of tax reforms designed to simplify the filing process and provide targeted relief to key taxpayer demographics. One of the most notable changes is the significant increase in the standard deduction for seniors—those aged 65 and older. This adjustment has the potential to make a meaningful difference for retirees and older adults living on fixed incomes, offering a straightforward way to reduce taxable income without the need for the itemization of each deduction. Under previous tax law, seniors received a modest increase in their standard deduction compared to younger taxpayers. While helpful, the bump was relatively sma…

Deductions are a key part of the tax preparation process for freelancers. It’s important than freelancers consider all of the potential deductions available to them, as to ensure they don’t inadvertently pay more in taxes than needed. To that end, we’ve put together some career-specific tax deductions, to help you brainstorm as you look to capture all possible expenses for your records. Keep in mind that the lists below are not necessarily meant to be exhaustive, and that many of the deductions can apply to multiple professions. WriterWebsite hosting fees Writing competition fees Lit journal submission fees Business cards Printing ActorHeadshots Printing headshots Ticke…

Every year, freelancers unintentionally hand the IRS more money than they need to simply because they overlook deductions they’re fully entitled to claim. This breakdown of the 14 key business deductions to be aware of is designed to help you avoid revenue-boosting blind spots on your freelance business tax return before you file. It’s easy to miss expenses that qualify as business deductions because the tax code is complex and constantly shifting. This is why it is important to be aware of changes that may affect your freelance return and work with a tax professional who can help you identify additional opportunities to reduce your taxable income and maximize any refund…

Freelancing gives you creative freedom, but it also means you’re solely responsible for your finances. If you’re a designer, writer, consultant, stylist, or any kind of creative solopreneur, the following strategies will help you keep your money working for you — without the fluff. Build a Real Emergency Fund An emergency fund cushions you against surprise expenses such as medical bills, client payment delays, or sudden equipment replacement. A practical guideline is to save three to six months of living expenses. One effective way to build this fund is to treat your contribution like a monthly bill; set aside a fixed amount each month until you reach the target. Aim for …

The U.S. Department of Education (DOE) recently announced a delay in resuming wage garnishment for borrowers with defaulted federal student loans. This offers temporary breathing room if you are a freelancer with such a loan. The following summarizes this new development and how freelancers can use this delay student loan garnishment to get ahead of potential financial strain and avoid the negative implications of garnishment. As you may be aware, when garnishment hits your radar it has strong potential to disrupt cash flow, jeopardize your tax planning and create other financial challenges. What’s Behind the DelayThe Department of Education has been working to transitio…

We know that independent workers are already redefining what work looks like. So why not redefine what climate action looks like, too? This Earth Day and Climate Week, we’re thinking about how freelancers are uniquely positioned to build a more sustainable future. Whether you’re working from home, biking to your local coworking space, or setting your own schedule around what matters to you, your freelance lifestyle might already be doing more for the planet than you think. Here are a few ways freelancing and sustainability go hand-in-hand, plus ideas for how you can take climate action as a member of this powerful, independent workforce. 1. Freelancers Leave a Smaller Car…

It was early morning, and I was sitting by a lake in Maine, a cup of coffee in hand when one of those bolt-from-the-blue moments of clarity struck me. Before I share my big a-ha moment, let me give you some context. I am a business coach for creative entrepreneurs and freelancers and have dedicated my entire career to helping creative professionals build profitable and successful businesses and careers. You’re my people! I am also a neurotypical parent of a neurodivergent child. Until I had my son, I had no idea how different neurocognitive styles impacted everything from time management and planning to motivation and focus (yep, some neurotypical privilege right there!)…