Tips on Managing Self Employment Taxes

Being self-employed is a wonderful thing, mainly because it allows you to do things on your own terms and in your own time. One thing that you cannot do on your own time, however and unfortunately, is your taxes. Taxes are one of those things that, like it or not, have definite deadlines, and, since tax time is upon us, it’s important to make sure that you are properly managing and making the most of your self-employment taxes. Fortunately, there are several simple tips that, if followed, can help you to do just that.

Know What Deductions You Can Take

Obviously, the first step in understanding and managing your deductions is knowing what they are! You should take extra care to find any and all deductions that your particular business is eligible for. And, since these do vary greatly from one type of business to the next, it’s a good idea to either do some serious research and reading and/or to speak with a tax professional who can analyze and categorize your business and let you know of all potential tax deductions that are available to you, including those that you might have overlooked in the past.

Keep Detailed Records

Once you are fully aware of all of the deductions that you can take and, even more importantly, are taking full advantage of them, then your next step is to ensure that you are properly recording and keeping detailed information on each deduction that you take advantage of.

You may want to have a card/account for business related expenses and deductions and/or a software program to help you record them (or both).

If you are not up to all of that work, then you may want to hire a professional financier to keep track of all of that information for you.

No matter how you go about it, it is crucial to record all deductions you utilize, as well as general self-employment related monetary transactions so that you will have both an easy record and easy proof of any and all information you may need for tax purposes and, if the instance arises, audit purposes.

As you can see, properly managing self-employment deductions and, for that matter, self-employment itself, is not that difficult, especially not with the right professional help, so follow these useful tips to ensure success.

Monday, March 6, 2017