As the year starts to wrap up, it is time to make sure you have done all you can to ensure you took care of your taxes this year. You can do many things to help your financial situation in regards to your taxes this year and next with the right planning.
Tip #1: Be Smart About Expenses
First, you will want to examine what tax bracket your small business falls into this year and where you fall within that bracket.
If you are one of the many individuals who found themselves pursuing self-employment or a variety of freelance jobs where you work as an independent contractor, doing your taxes is going to be a little different this year. There are different deductions you can qualify for and use on your taxes when some or all of your income comes from self-employment activities.
As a self-employed individual, you have to pay both the employee and the employer portion of your required Social Security and Medicare tax.