Self Employment: Fill & Download for Free

If you’re making donuts, $12,000 a month is *amazing!* If you’re a self-employed truck driver, it’s probably a good or really good month. If you’re a programmer at Google, it’s not bad for early wages. If you’re the president, you’re getting ripped off: you’re supposed to make more!So the answer is, yes, maybe, and no.

According to The IRS, Self-employment tax is a tax consisting of Social Security and Medicare taxes primarily for individuals who work for themselves.The self-employment tax rate is 15.3%. The rate consists of two parts: 12.4% for social security (old-age, survivors, and disability insurance) and 2.9% for Medicare (hospital insurance).While the Tax Amounts might vary with difference in Self-employment, the need for minimizing income tax is constant across the entire self-employed strata.Here are some ways by which you can do the same:A. Increase your Business Expenses: The only sure shot way to minimize your self-employment tax is to increase your business related expenses. Regular deductions like the standard deduction or itemized deductions won't reduce your self-employment tax though.B. Forming an S-Corporation: The self-employment tax applies specifically to earned income. If your clients or customers pay the S-corp and not you directly, that's not earned income to you. But you need to pay your bills, right? You need earned income.So break up those payments and pay yourself a part of them as salary and the balance as dividends. The "salary" portion is earned income and is therefore subject to self-employment tax, but dividends aren’t!C. Health Insurance Deductions: One substantial tax advantage, the self-employed have, is the ability to deduct health insurance costs. As About.com explains, you can “deduct the full cost of health insurance you purchase for yourself, your spouse, and/or your dependents” so long as you had a net profit for the year.D. Defer Income: Another creative but perfectly legal way to reduce your self-employment taxes is to defer income. As a self-employed person, you can choose whether to get paid now or later. This works by deferring a part of your income to next financial year which is putting your net taxable income in a higher tax bracket. This way you can earn your due while staying in a lower tax bracket at the same time.So, these are some ways by which a freelancer can minimize taxes in Financial Year 2020. Meanwhile, if you are looking ahead to a Tax Hosting Provider, which takes care of most of your financial woes and ensures all your tax returns stay manageable and up-to-date, find us HERE.

For many years I’ve tried to work as an employee, but no matter how hard I tried, and no matter how well the work itself fit me, the social and communication aspects of it ruined it every time. When I start working somewhere it’s always fine at the beginning, but then gradually more difficulties regarding communication and socializing pile up, and I get more and more anxious until I get totally burned out.Besides trying to work as an employee, I’ve been working as a self-employed artist and autism advocate. As a YouTuber I make videos about autism and I also have a separate channel for drawing tutorials.Last year I started to get a lot more commissions. People wanted me to draw their family member or pet, so eventually I decided to quit my cleaning job I had at that moment, and become full time self employed artist and autism advocate. This way I can pursue my passion, I’m my own boss, and I don't encounter issues with communication and social interaction anymore.This is one of my drawings, and if you’d like to see more of them, have a look at my website: Autistic Pencil Artist and Autism Advocate