For those working for themselves, tax time can be far more convoluted than for someone working as a standard W-2 employee. 

The Taxes4Us tax preparers have all the needed information on tax laws and regulations to complete your electronic filing. When it comes to calculating your total business expenses, working with a tax professional ensures you are not missing any credits or deductions. Our self-employment tax preparers will get you the return that you deserve. 

Tax Season for Self-Employed Individuals: What You Need to Know

The major difference between filing taxes as a W-2 employee and a self-employed individual is having to figure out the taxes on your own. When you are self-employed, no one is deducting these taxes from your paycheck. This means you have to remove these taxes yourself. There are also different forms that are used including Schedule C, the Schedule SE (Form 1040 or 1040-SR) Self-employment tax. 

Because of changing work models, many people are working from home or working in what is typically called the “gig economy.” This means many freelancers are working on a per-project basis. Tech companies and startups use employees on a project-by-project basis. Many of these employees will receive a 1099 tax form and will also be required to pay their taxes. Working with an experienced self-employment tax preparer will ensure your filing is accurate and documents everything clearly. 

FAQs About Taxes for the Self-Employed

Being part of the “self-employed” category can make tax season much more complicated. Below are frequently asked questions we see from people filing as self-employed.  

What expenses can I deduct on my taxes? 

All business expenses are deductible. This includes office supplies, printers, the infrastructure needed to conduct business, licenses, permits, equipment, etc.  

Can I deduct my rent/mortgage as a business expense if I work from home?

This has become a frequently asked question as more and more people work from home. If you exclusively use a part of your home as your office, you can deduct some of those expenses including mortgage interest, utilities, depreciation, and, more. 

If I generate self-employment income, will I have to pay taxes at the end of the year?

If you generate income from any self-employment work, you will likely see this come tax time. Of course, everyone’s situation is different, so it is difficult to make generalizations about what it will entail. Working with a tax professional can be key to ensure that you know about deductions that can lessen this burden at the end of the year. 

Contact Taxes4Us, Today!

If you are a sole proprietor or self-employed individual, don’t take a chance with your taxes. Get them done right with self-employment tax preparers. Give Taxes4Us a call, today!