Painless1099 is a service for helping freelancers save for tax season. We open an online bank account for deposits of 1099 income, automatically withhold taxes based on personal information (number of dependents, filing status, etc.), and then deposit what is safe to spend directly to your personal checking account. Simple and Painless.
Setting up a Painless1099 account is easy and doesn’t take long. There are a few items we’ll have to collect from you in order to set you up with your new smart savings account.
In this article, you’ll learn what goes into setting up a Painless1099 account.
Before you Begin
Before you begin setting up your account, here are a few things you’ll need to have.
- Opening an account requires you to agree to our Terms of Service and Fee Schedule.
- You’ll need a driver’s license and social security number to securely open up your Painless1099 smart savings account.
- You’ll be linking your personal bank account to your Painless1099 account. This requires you to have an online login for this account or the account and routing number, depending on what bank your account is with.
Here’s a quick overview of what you'll do when setting up your account.
- Opening Your Account
- Verifying Your Identity
- Linking Your Bank Account
- Setting Your Withholding Rate
- Making A Deposit
Opening Your Account
When you sign up for a Painless1099 account, the first thing you’ll do is create a profile. To create your profile you’ll enter your email address and a created a password. Next, we’ll send you an activation email to make sure this email account belongs to you. Once you’ve received the activation email, you can clink on the link within the body to be redirected your your newly activated profile to continue opening your account.
To learn more about opening your account, read the article Opening an Account.
Verifying Your Identity
Your protection is as important to us as it is to you, so we need to verify your identity. We do this by matching the information you provide with public databases to make sure the information is accurate. At that point, we ask you 4 question that only you should be able to answer. This allows us to verify that you are who you say you are.
To learn more about how we protect your identity, read the article Verifying Your Identity.
Linking Your External Account
Next, you’ll need to link your personal bank account to your new Painless1099 account. That way, we know where to send the amount of your paycheck that’s safe to spend once money has been separated for taxes.
You can link any US-based bank account with your Painless1099 account, as long as you can provide an account and routing number for this account.
To learn more about linking your personal bank account, read the article Linking Your Bank Account.
Setting Your Withholding Rate
Once you’ve linked your personal account, we’ll need to know how you’d prefer to save for taxes. If you’re not exactly sure how much you need to be saving, we can take care of all the tricky math and calculate your withholding percentage with our Projected Withholding option. If you like to take more of a hands on approach, you can choose our Fixed Withholding to have a set percentage (selected by you) to be withheld from each of your paychecks. .
To learn more about withholding types, check out the article Setting Your Withholding Rate.
Making a Deposit
Making a deposit is the last step to setting up and using your Painless1099 account. As money is deposited into your account, we'll automatically calculate how much you’ll owe in taxes based off your withholding rate, set that amount aside in your Painless1099 account, and then send the remainder of what’s safe to your linked bank account.
There are two ways of making deposits into your Painless1099 account. You can have your clients send your payments directly to your Painless1099 account or transfer funds to your Painless1099 account from your linked account.
To learn more about how to make a deposits, check out the article Making A Deposit.