Navigating Taxes for the First Time: A Personal Journey
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Chapter 1: A New Chapter in Freelancing
The past year has marked a significant milestone in my personal journey. Through Medium, I finally earned some independent income outside the confines of a regular job for the very first time.
Although it wasn’t a substantial amount—considering it took over six months to establish my presence on the platform—the experience frequently pushed me out of my comfort zone. I had to navigate technical and bureaucratic challenges that felt completely daunting at times.
Stripe was particularly daunting. I nearly backed out due to the overwhelming "business" aspect of it. I had no intention of registering and incurring costs for a business without understanding the financial implications and operational details.
Fortunately, my online connections proved invaluable. A friend from Medium reassured me that the process was more straightforward than I imagined. Since I could register as an individual, Stripe turned out to be less intimidating than I initially thought.
With newfound courage, I completed the necessary forms and joined the Partner Program in December 2022. Over the next year, I managed to earn around $3,000 on Medium and an additional $1,000 on another platform. This success positioned me to file my own tax documents in my country for the first time this year.
Section 1.1: The Tax Filing Dilemma
Facing the tax process again felt stressful. I was uncertain about what steps to take, and from what I had researched online, the procedures and forms appeared overly intricate for someone unaccustomed to taxes.
To my surprise, my online network came to my rescue once more. I reached out to someone from my country for guidance, and they pointed me in the right direction. They suggested booking a consultation with an accountant if I remained confused.
Subsection 1.1.1: Choosing the Right Approach
Ultimately, I opted against filling out the forms online. Instead, I visited the tax agency to complete the paperwork in person. This decision proved beneficial, as the paper format felt more manageable. By the time I met with the accountant, the public employees had already provided me with the necessary guidance.
To my relief, the entire process was simpler than I anticipated, taking less than five minutes. The accountant even declined to charge me for the service. Perhaps the amount was too small to warrant a fee, or maybe he assumed I was younger due to my youthful appearance when clean-shaven.
What mattered most was that I successfully filed my taxes without incurring any additional charges. Since my earnings were minimal, I was exempt from paying social contributions (like pension and health insurance). Moreover, I had already been taxed 10% by the U.S. government through Medium, which meant I didn't owe any further taxes in my home country.
Section 1.2: Looking Ahead
In summary, the tax filing experience wasn’t nearly as daunting as I had feared. I feel proud of myself for completing the forms, even though I wasn't required to pay any extra taxes.
Looking ahead to next year, I anticipate having to file my taxes again. Given my increased earnings, I will likely owe something additional for 2024. But I see that as a positive sign—higher profits mean higher taxes, and that’s perfectly fine with me.
I am incredibly grateful for my earnings. Even after taxes, I can sustain myself with my freelance work. Any extra income is a welcome bonus, especially considering the local currency in my region is worth significantly less than a dollar.
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Chapter 2: Understanding Taxes for Beginners
The first video titled How to do Taxes for the First Time offers a comprehensive guide for first-time filers, breaking down the essential steps to navigate the tax process with ease.
The second video, Filing Taxes For the First Time, provides practical tips and insights specifically designed for beginners who may feel overwhelmed by the tax filing process.