Since many freelancers don’t know the rules around self-employed taxation, they can get surprised when tax time comes around. I’ve known a lot of freelancers who were stunned to owe unexpectedly large amounts of tax. As a rule of thumb, you should set aside 30% of your income for taxes. Some people save 20%, but I prefer to be conservative: it’s better to end up oversaving than owing money at the end of the year.
