There are some very good benefits to being self-employed. One can set their own hours, work where the want to, and perhaps make more money than they did when employed by a company. But they also have to file their own taxes which can be daunting. The Enterprises TV show shares some tax tips for the self-employed.
Tax filing season can be challenging for anyone. The Affordable Care Act has made it even more difficult for some people who have health insurance through one of the exchanges. Self-employed people have the additional obstacle of having to file their own taxes quarterly, annually, or both. Someone who works for themselves must pay their own Social Security and Medicare taxes. This usually means that the self-employed person should file 12.4% for Social Security and 2.9% for Medicare.
People who work for themselves may also do some freelance work to make some extra income. Be sure that any business which contracted freelance services has completed all the required forms and return them to file before April 15.
There are also some good deductions to take: contributions to IRAs, mileage, parking fees and tolls (as long as there is a record of it), equipment such as tablets and smart phones used only for business (with receipts), and also professional memberships.
The Enterprises TV show recommends getting professional tax help if needed. Ask friends and family for references to be sure the right advisor or tax preparer is chosen.