Are you self-employed? Self-employment is the dream for many Americans everywhere. We would all love to set our own hours, take vacation whenever we fancy, and be our own boss, but self-employment is far from perfect. Aside from the fact that you may not have reliable income, you will also have to deal with the dreaded self-employment taxes. While we can’t help you with unreliable income, we can help you to be prepared for your taxes. The following is a list of tips from our tax attorney in Maryland to help you to be prepared for tax time:
- Understand how self-employment tax is calculated- Do some research to find how just how much you will owe. When you can fully understand how self-employment tax is calculated, you can better prepare for tax time.
- Make your quarterly tax payment on time- Most employees get their federal taxes, Medicare, and Social Security tax taken out of their checks every single time they get paid, but since you are working for yourself, you will need to pay these taxes quarterly instead. Stay ahead of the game by paying your taxes on time each and every quarter.
- Take advantage of any available business deductions- All of your taxes will add up quickly, so you will want to take advantage of any and all deductions that you have available to you. You can read more about common tax deductions in previous blogs from our Maryland tax lawyer.
Being self-employed can come with many wonderful benefits, but no one wants to have to face tax time. If you are looking for more guidance and advice on how to deal with taxes for your business, contact us today.