One of the most powerful advantages of being self-employed in the United States is the ability to deduct legitimate business expenses from your taxable income. Every dollar you deduct reduces your net self-employment income, which lowers both your income tax and your self-employment tax. Understanding which expenses qualify and how to document them correctly can…
Quarterly estimated taxes are one of the most confusing — and most important — financial obligations for freelancers and independent contractors in the United States. Unlike employees who have taxes withheld automatically from each paycheck, self-employed workers must calculate and send tax payments to the IRS four times a year. Miss these deadlines or underpay…
One of the first financial surprises new freelancers encounter is the self-employment tax. When you were an employee, your employer quietly paid half of your Social Security and Medicare taxes on your behalf. As a self-employed individual in the United States, you are responsible for the entire amount. Understanding how this tax works, how to…
