How Freelancers, 1099 Workers, and Self-Employed Can Deduct 20% of Business Income

Did you know that you can deduct 20% of your business income on your personal tax return? You can, thanks to the Tax Cut and Jobs Act (TCJA). The TCJA brought a lot of tax changes for small business owners. And if you're self-employed, a freelancer, contractor, or had any 1099 income - even from a side gig - that includes you. The biggest tax change: A 20% deduction on self-employed business income called the Qualified Business Income Deduction. That means you will only pay income tax on 80% of your qualified business income. The 20% deduction is for income…

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How To Fill Out Schedule C If You’re Self-Employed

If you're self-employed, work as a freelancer or contractor, or have a side gig, you are a business. And that means you'll need to fill out Schedule C as part of your federal income tax return. When you use Schedule C, you can deduct business expenses against the money you earned to lower your income... and lower your tax bill. Your tax software will do all of the math for you – but you still have to enter all the correct information. After all, the tax software has no idea how much you spent on office supplies unless you tell…

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3 Big Tax Changes You Need To Know For Tax Year 2020

3 Big Tax Changes You Need to Know for Tax Year 2020

Please Note: This article may contain affiliate links. If you click on those links, I may receive compensation.   The last you want to be thinking about now is next year’s tax return. This year has been chaotic, frightening, confusing, stressful, and mostly exhausting. So piling on the thought of taxes sounds… taxing. But this is exactly the time to think about it, because you can still make changes that will affect your 2020 tax bill – the one you’ll file in 2021. There have been so many changes that it’s hard for even CPAs to keep up. But those changes…

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Business Tax Prep Checklist for Freelancers, Contractors, and 1099 Workers

Gather all of your business tax information here, and the hardest part of doing your taxes is done. Whether you DIY your taxes or go to a tax pro, this is what you’ll need to have on hand. Copy of last year’s tax return Your business tax ID number (if different than your Social Security number) Business bank statements Business credit card statements Business loan statements Business financial statements: Balance Sheet and Profit & Loss Statement IRA or other retirement plan contributions made during the tax year Self-employed retirement contributions Self-employed health insurance premium payment records HSA (Health Spending Account)…

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2019 Tax FAQ’s

2019 Tax FAQ’s

Got tax questions? I have the answers. All of those confusing changes in the TCJA (Tax Cut and Jobs Act) have led to some unexpected outcomes – like teeny, tiny refunds or surprise tax bills. Plus, the forms that were supposed to be “postcard-simple” are confusing even for the experts. I’ve been getting a lot of questions this year – and expect I’ll get a lot more. If you have any questions that aren’t answered here, add them to the comments and I’ll answer as soon as I can. You can also contact me here. Here are the questions I’ve…

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