Skip to main content

DiSabatino CPA Blog

DiSabatino CPA Blog

A blog by Michael DiSabatino CPA with topics on Tax Savings, Business, Management and more...
2 minutes reading time (378 words)

Take advantage of being self-employed

self employed

Do you work for yourself? Make sure you're taking advantage of all the tax breaks out there for self-employed individuals. Here are some of the big ones.

When it comes to taxes, being self-employed has some advantages. Whether you work for yourself on a full-time basis or just do a little moonlighting on the side, the government has provided you with a variety of tax breaks:

  • Build up your retirement funds. When you're self-employed, you're allowed to set up a retirement plan for your business. Remember, contributing to a retirement plan is one of the best tax shelters available to you during your working years.

Take a look at the SIMPLE IRA, SEP IRA, or Solo 401(k), and determine which plan works best for you.

  • Employ your kids. If your business is unincorporated, hiring your child under the age of 18 might make sense. That's because your child's earnings are exempt from Social Security, Medicare and federal unemployment taxes. This year, your son or daughter can earn as much as $12,000 and owe no income taxes. You get to deduct the wages paid as a business expense.
  • Deduct health insurance. Are you paying your own medical or dental insurance? How about long-term care insurance? As a self-employed individual, you may be able to deduct 100 percent of the cost of these premiums, subject to certain restrictions.
  • Save on business-use items. Self-employed individuals can also deduct 'mixed-use' items directly against their business income. Use your car for business and you can deduct 54.5¢ per business mile driven. And if you meet the strict requirements, claiming the home office deduction makes a portion of your home expenses tax-deductible.

Please give us a call to find out more about the tax breaks available to self-employed individuals.


 As always, feel free to pass this Tip along to friends, and reach out if you need help with your personal tax and finance situation. 

DiSabatino CPA
Michael DiSabatino
651 Via Alondra Suite 715
Camarillo, CA 93012
Phone: 805-389-7300
ww.sharpcpa.com
 
This publication provides summary information regarding the subject matter at time of publishing. Please call with any questions on how this information may impact your situation. This material may not be published, rewritten or redistributed without permission, except as noted here. All rights reserved.
0
×
Stay Informed

When you subscribe to the blog, we will send you an e-mail when there are new updates on the site so you wouldn't miss them.

Don't have a mutual fund-kiddie tax surprise
Tips to Fund your Retirement Account: New 2019 con...

Related Posts

 

Speed Up Your Success!

Contact Us Today: 1-805-389-7300