Being self-employed is quite possibly one of the best tax strategies available today. Unlike being an employee, self-employed taxpayers are in full control of their financial and tax situation. But independence also comes at a cost. Independent contractors face higher taxes and more record keeping duties than employees. The IRS is undeniably suspicious of self-employed persons. The IRS routinely audits self-employed / independent contractors, often looking for unreported income or overstated … [Read more...]
Self-Employed Taxes
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Some general guidelines on reporting your income on a Schedule C Tax Form. When you own a small business or operate as an independent contractor, the government wants your money to pay Social Security and Medicare tax through their self-employment tax. Specifically, they want to tax the profit that you have seen from your business. But don’t worry yet. The full amount of taxable income is determined by more than just the total profit made. A self-employed designation is determined by … [Read more...]