A side hustle is an additional job or freelance work taken up alongside a main job. Freelancing can be a great side hustle as it provides an additional stream of income and offers flexibility. However, it’s important to manage time effectively to ensure that it doesn’t impact your primary job.

A pay stub is a document that details an employee's earnings and deductions for a specific pay period. While traditional employees receive pay stubs from their employer, freelancers who are self-employed can create their own pay stubs to provide a record of their earnings and withholdings, which can be useful for purposes like applying for loans.

Late payment collection refers to the methods and practices employed by freelancers to collect payments that are past due. This may involve sending reminder emails, making phone calls, or, in extreme cases, taking legal action. Freelancers should have a clear payment policy to minimize the instances of late payments.

Negotiation in freelancing involves discussing terms, conditions, and payments with clients to reach an agreement that is acceptable to both parties. Effective negotiation skills are essential for freelancers to ensure that they are compensated fairly for their work.

Calculating monthly income as a freelancer involves totaling all the payments received for services rendered during a month. This includes hourly wages, fixed project fees, and any other sources of income. Since freelance income can fluctuate, it’s important to have a clear understanding of your average monthly income for budgeting purposes.

Invoicing is the process by which freelancers bill their clients for services rendered. An invoice typically includes details such as the services provided, the amount due, payment terms, and the due date. Proper invoicing is essential for maintaining cash flow and keeping a record of earnings.

Hourly rate is the amount of money a freelancer charges for one hour of their work. Calculating an appropriate hourly rate is important to ensure that the freelancer is being compensated fairly for their time and skills, and it typically takes into account factors such as industry standards, experience, and costs of doing business.

An independent contractor is someone who provides services or skills to clients or businesses on a contractual basis rather than as an employee. Freelancers are often classified as independent contractors. Unlike employees, independent contractors are not subject to withholding taxes and do not receive employee benefits.

A sole proprietorship is a type of unincorporated business that is owned and run by one individual. Freelancers often operate as sole proprietors. In a sole proprietorship, there's no distinction between the business and the owner, meaning that the owner is entitled to all profits but is also personally liable for all debts, losses, and liabilities.

Time management is essential for freelancers as they often juggle multiple projects and clients. Efficient time management involves planning and allocating your time wisely to ensure that deadlines are met and work quality is maintained. This is even more critical when balancing freelance work with a full-time job.

Freelance income refers to the earnings a freelancer receives in exchange for their services. This could be from various sources such as client projects, consulting, writing, design work, etc. Freelancers typically don’t have a fixed salary and their income might vary widely from month to month based on the number and type of projects they take on.

Tax credits reduce the amount of tax owed, dollar for dollar. They're more beneficial than deductions, which only reduce the amount of income subject to tax. There are various tax credits freelancers may be eligible for.

These are disagreements between a taxpayer and a tax authority, such as the IRS, over the amount of tax owed or other aspects of the tax return. Freelancers may engage a tax professional to assist in resolving disputes.

This is software designed to assist in preparing and filing income tax returns. It can be particularly helpful for freelancers, who often have more complex tax situations than traditional employees.

Expense tracking is the process of recording and monitoring all costs incurred in the course of freelancing. This includes purchasing equipment, subscriptions to software, travel expenses, and more. Keeping a record of these expenses is vital for managing your budget, and can also be beneficial for tax deductions.

Financial management for freelancers involves handling all financial aspects of freelancing – budgeting, invoicing, tracking expenses, ensuring payments are received on time, and saving for taxes. Good financial management is crucial for the sustainability and growth of a freelance business.

These are the dates by which certain actions must be taken for tax purposes, such as filing returns or making payments. For instance, the deadline for filing individual income tax returns is generally April 15th.

These are amounts that reduce taxable income. The term is a little outdated, as personal and dependent exemptions were eliminated by the Tax Cuts and Jobs Act in 2017, but some taxpayers may still qualify for certain other types of exemptions.

A retirement plan is a financial arrangement designed to replace employment income upon retirement. Freelancers may opt for individual retirement accounts (IRAs) or a solo 401(k), among other plans.

FICA stands for Federal Insurance Contributions Act. These are payroll taxes paid by both employees and employers to fund Social Security and Medicare. Self-employed individuals, like freelancers, are responsible for the entire FICA tax amount, but can deduct the employer-equivalent portion.

This is software that helps manage financial transactions. For freelancers, it can assist in tracking income and expenses, invoicing, and preparing for tax filing.

Tax withholding refers to the amount of an employee's pay withheld by the employer and sent directly to the government as partial payment of income tax. Freelancers, being self-employed, do not have taxes withheld and must estimate and pay these themselves.

A net operating loss (NOL) occurs when a business's tax deductions exceed its taxable income within a tax period. This can be carried forward or back to offset taxable income in other years, reducing future or past tax liabilities.

This is coverage that pays for medical and surgical expenses incurred by the insured. Freelancers, not having employer-provided insurance, must typically obtain their own health insurance, the premiums of which can often be deducted from their taxes.