Sadly, self-employment has had quite the bad rep, for obvious reasons. Tax reasons are included in that mix. Entrepreneurship, although celebrated widely, often doesn’t get the same perks as traditional W-2, and that’s a shame. Thanks to this year of 2015, when filing your tax return, you have a bit of consolation, particularly when dealing with social security, so bear this in mind, because it’s important: you don’t want to miss out on this tax deduction at all.
You Do, in Fact, Get a Benefit for Being Self-Employed on Your Taxes
It’s a small one, but a benefit nevertheless. It should never be such a downfall to be a snazzy, trendy and hip entrepreneur with creativity in mind, expanding industry and developing new innovations to propel corporate America to the next level, so the IRS sees some consolation regarding social security, in that while you have to pay for that tax twice as a self-employed professional, you do get to write off the “employer” portion of those income taxes at 7.65%.
Granted, it’s not as much as the 15.3% you have to pay based on the annual income you’ve generated, but when you consult with the tax guy and get the 2-hour tax return
going fast, you might notice some other tax deductions balancing it all out.
Playing the Cards Right and Landing the Royal Flush
The sooner you do it, the closer you are to winning that pot at the center of the table. Winner, winner, chicken DINNER!