Buzz
Quarterly taxes can be a hassle for first-time freelancers, or even experienced ones. You either don't realize you need to pay them and get caught off guard, or you end up withholding too little.
Enter the Track.Tax app, which automatically calculates your tax dues each time you receive a 1099 form and sets it aside in a savings account with Evolve Bank, ensuring you meet your quarterly tax deadlines (note: your withholdings won't earn interest). Simply link your bank account to the app, and it will track freelance income through your deposits.
You can also link your expenses, which the app will automatically deduct, and it will submit your taxes to the IRS and state authorities for you, pending your approval. Once the money is set aside, it can’t be returned unless you receive a refund.
The app offers a 30-day free trial, after which it costs $10 per month. This includes the calculations, deductions, and a free annual state and federal tax filing service.
According to Next Avenue, the app is initially about 80% accurate when tracking freelance income, but it improves over time. Make sure to review its calculations, especially in the first few months of use, and manually correct any errors.
As stated on the website, the app currently does not account for the following:
Capital gains/losses on investments
Income from multiple states
Social Security Income
Outstanding balances from prior tax years
Previous IRS or state payments
Therefore, it's important to review everything thoroughly, and Track allows you to download your data if you'd like to share it with your CPA, for example.
While it's not flawless yet, for freelancers who often miscalculate their quarterly taxes or are just starting out, this app can be a helpful tool.
For additional details on your quarterly taxes, explore these resources.
