Self Employment Tax Tips
Employ a spouse and deduct:
- Medical expenses for the entire family
- Fringe benefits
Employ a child, under the age of 18, and:
- Save on Social Security Taxes
- Shift income to a lower tax bracket
Contribute to a SEP or Keogh instead of an IRA and increase deductible
contribution amounts or
- Establish a new Solo 401k, and you may be able to contribute up to
$42,000 per year. The 401k must be opened by December 31st of the tax year but you have until April 15th, or if you file an extension, the extended date, of the following year to fund it
Maintain a qualified office in-home and deduct:
- Mileage
- A portion of:
- Mortgage interest
- Real estate taxes
- Home insurance
- Security system
- Home repairs/maintenance
- Utilities
- Other expenses such as water, sewer, garbage removal, etc.
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- Generally, to be deductible, you must not have another
office available for your use and the office in-home must
be used regularly and exclusively as a principal place of
business or to perform administrative tasks.
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- Turn charitable donations into business deductions by giving money
to charities in exchange for advertising.
- As the internet becomes more and more used in business, internet
access fees may be deductible as well as the cost to develop and
maintain a business web site.
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Helpful Links: |
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TAX Updates
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