I got whacked. In 2009-2010, I spent 11 months unemployed, with no unemployment benefits. I pulled some money from my 401K plans, and I did a TON of freelance work. Those freelance clients stiffed me. Nearly $5,000 was unpaid. My accountant said I couldn’t claim the losses due to my “Cash Accounting” status. Subsequently, the IRS nailed me for $5,000+ in taxes, with no income at all.
No more. I shut down my freelance business. If you want side work from me, look elsewhere. It is not worth it, to me, to do side work. I pay more in taxes than I make in freelance fees. Even web hosting customers… check your history. The last time I charged you was 2010. Nothing for 2011, 2012. Forget it, it’s not worth it, to me. I’d rather host you free than get nailed for the freelance income.