While being self employed means taking on a lot more risks, responsibilities, and costs that you don’t have to take on when you work for someone else. Being self employed means that you’re responsible for getting your own customers, generating income, and paying taxes – just to name a few things. Knowing how to file taxes when you’re filing as self employed for the first time can be a daunting task. Kansas City Tax Mediation is here to help you with all of your Kansas taxes. Today we’ve got some tips for all of you out there that are self employed.
1. Make the most of your medical insurance deductions by deducting your health insurance premiums for yourself, your spouse, and your dependents as an adjustment to income.
2. Keep your company’s form simple. Unless you absolutely must form a partnership or a corporation for some reason, stick with a Schedule C, Sole Proprietorship.
3. Automate your record keeping and make those shoeboxes a thing of the past. There are all types of personal finance software out there now that you can link up directly to your bank account.
4. Take a home office deduction if you qualify for it! You’ll be able to deduct some of your otherwise nondeductible expenses, like portions of your home insurance, utilities, and rent!
5. Increase your retirement contributions. Consider a SEP, SIMPLE, or profit-sharing plan.
Are you self employed and need help with your Kansas taxes or tax relief? Call us today!