Freelancers and side-hustlers often make common tax mistakes, such as not tracking their income and expenses, not estimating their quarterly taxes, and not taking advantage of all the tax deductions they're eligible for. These mistakes can cost freelancers and side-hustlers money on taxes and lead to penalties and interest.

Here are some tips to help freelancers and side-hustlers avoid common tax mistakes:

• Track your income and expenses. This is essential for accurate tax reporting. Freelancers and side-hustlers should use a bookkeeping system or software to track their income and expenses throughout the year.
• Estimate your quarterly taxes. Self-employed individuals are required to make estimated tax payments quarterly if they expect to owe at least $1,000 in taxes for the year. Freelancers and side-hustlers can use the IRS Form 1040-ES to estimate their quarterly taxes.
• Take advantage of all the tax deductions you're eligible for. There are many tax deductions available to freelancers and side-hustlers, such as the home office deduction, business travel expenses, and equipment costs. Freelancers and side-hustlers should be sure to keep all receipts and documentation to support their deductions.
• File your taxes on time. The deadline for filing individual tax returns is April 15th. Freelancers and side-hustlers who file their taxes late may be subject to penalties and interest.
• Keep your tax records for at least three years. This is the IRS audit window. Freelancers and side-hustlers should keep all of their tax records for at least three years in case they are audited by the IRS.

By following these tips, freelancers and side-hustlers can avoid common tax mistakes and save money on taxes.