In the gig economy, it seems like more people than ever are working freelance jobs or taking on side hustles to boost their income. Whether you drive for an app, operate a small business, or are part of a single-member LLC, you may need to pay self-employment taxes. Luckily, there are resources available that can help take some of the guesswork out of self-employment tax filing and paying. Using a self-employment calculator, and keeping meticulous records of expenses throughout the year can help you reduce your tax liability and avoid paying unnecessary fines come tax season.
Calculating your net earnings for tax purposes is a crucial first step to determine how much you’ll owe in self-employment tax. Net earnings are your total income minus qualified business expenses. You’ll calculate this amount for the year and report it on IRS Form 1040, Schedule C. Depending on your situation, you may need to make quarterly estimated tax payments throughout the year as well.
Generally, if you work for yourself or own your own business, you’ll also be responsible for paying Social Security and Medicare taxes. These are additional tax deductions that you’ll need to claim by submitting IRS Form 1040-ES.
With so many moving pieces, it’s easy to get overwhelmed by the details of self-employment taxes. However, with careful planning and a reliable self-employed tax calculator, you can rest easy knowing your taxes are filed correctly and on time. Whether you choose to file yourself or have a TurboTax expert do it for you, we’ll ensure you get every dollar you deserve and the biggest possible refund. Калкулатор самоосигуряващо се лице с личен труд