With job losses happening worldwide and unemployment numbers going down in the past few years, freelance work has spiked and turned into something that can replace full-time staff positions for many individuals.

Because it's such an exciting opportunity that many approve of and wish to partake in, we can only expect to see the market of freelancing skyrocket past any expectations in terms of economic stability.

But since this is new territory for the marketing world, there are some things regarding tax that many should learn to understand as it's forever changing in this stage of universal development.

If you are new to freelancing, doing your taxes will not look the same as it once did in previous years. So here are a few tax tips for freelancers to stay on top of the tax game:

Baby Steps

When you're new to this form of tax return, it's best to gather all your sources of income. As a freelancer, you need to be extremely organized in keeping track of all your 1099 forms, receipts, expenses, and client lists.

It's best to start out hoarding any information you can as you begin this journey and remember that freelancing isn't a hobby- it's you owning a business. Approach your accounting or bookkeeping work as you would at any other company you've worked for before.

If you feel you can't keep track and have a little extra cash to spend, hiring a third party might be a good option for keeping your taxes in line.

Keeping Track

The great news about being a freelancer is that you can still write off certain expenses.

This means you are able to expense business trips, vehicles, and any materials you may need to do your work. This is an important piece when filing your taxes, especially because many freelancers don't use it to their advantage. Other areas you might be able to deduct are marketing, health insurance, and contract work.

This is why organized is essential for all your files and receipts, as keeping track of your expenses and not overlooking viable ways to earn back money will make your freelancing career worth the extra work, especially when that check comes in the mail.

Putting Money Away

Many freelances believe the best thing to do when preparing for tax season is to put aside at least 25% of what you make to ensure you aren't strapped for money come the time to pay your taxes.

With this approach, self-employment taxes should be fully covered, preventing a large number of expenses from appearing at the end of the year.

Opening a separate savings account where it can be set up for direct and automated deposits from your main checking account is a good idea to think about as it will help to keep your tax savings on track.

Home Deductions

Since so many freelancers work from home, the home office deduction tax can be applied. The CRA allows freelancers to write off everything from utilities to rent for the portion of your home that you choose to use as your office space.

The only catch is that office space must be exclusively used for your self-employment work and nothing else.

After reading all these great tips, are you feeling like you want to be more organized this tax season? If so, then don't hesitate to take a look at CapexCPA, a digital accounting firm that is there to help with all your financial needs. Making tax season a stress-free experience for years to come.