Tips to Reduce Self-Employment Taxes

[MULTIZ321]

Tips to Reduce Self-Employment Taxes.

Tips to Reduce Self-Employment Taxes

If you're self-employed, you'll need to pay both income and self-employment taxes. Here are some ways you can reduce the amount you owe.

www.thestreet.com

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Richard

 

[x3 skier]

Any tax preparation software does all of this.

Cheers

 

[Rjbeach2003]

A word of caution. As someone who has owned a retail store and subsequent to that been a self employed sales representative, what you saved yesterday doesn't come back today. For 40 years I did everything I could to lower my net income. I took every legal expense and did lower my net income, in some cases to poverty level, on paper. Driving a car for 200,000+miles on business is one way, claiming the daily mileage rate, which you get whether you have a new car or one 20 years old. As a road I was able to claim the daily deduction for meals etc, which was always more than I spent.
The effect though was it lowered my income upon which my SS is based. Depending on how long I live, and my wife after me, it probably is at least $1000/month. I put off retirement until 70 1/2 to collect the max I could.
But those tax laws did allow me to have a generally comfortable life for those 40 years, so I don't regret it. Just be aware.

 

[geist1223]

I have a brother that tried every trick (some probably not legal) in the Book to lower his taxable income. He was always self-employed. Then he b****ed and complained about how low his Social Security Payments were.

 

[x3 skier]

Fortunately I had a great pension and maxed out IRA contributions when I was a self employed consultant after retirement. As a result I can treat my SS as a fun money source.

Cheers