Working for yourself is awesome. But the taxes and saving for your taxes is definitely not. Let’s go over a few tips for saving for taxes when you’re self-employed.
Tags: Estimated Taxes
Being your own boss is great. It also means your taxes can be more complex. This self employment tax guide walks you through the self employment tax basics of what to expect. We’ll also spotlight some valuable deductions that could lower your tax bill.
If you’re self-employed, you likely need to pay estimated taxes each year. These are quarterly prepayments of both your income tax and Social Security and Medicare taxes due for the year. You must pay estimated taxes if you are a sole proprietor, partner in a partnership or member of a limited liability company, and you expect to owe at least $1,000 in federal tax for the year.