Self-employment comes with many perks, but it also means managing your own taxes. In this post, we’ll cover some tips and strategies to help you save on taxes if you’re self-employed.

Deduct Your Business Expenses

One of the biggest advantages of being self-employed is the ability to deduct business expenses. These can include office supplies, equipment, travel, and even a portion of your home if you use it as your workspace. Make sure to keep detailed records of all expenses throughout the year.

Contribute to a SEP IRA or Solo 401(k)

Self-employed individuals can reduce their taxable income by contributing to a SEP IRA or Solo 401(k). For 2024, you can contribute up to 25% of your net earnings to a SEP IRA, with a maximum contribution of $66,000.

Pay Estimated Taxes Quarterly

Self-employed individuals are required to pay estimated taxes quarterly. By paying your taxes throughout the year, you can avoid underpayment penalties and better manage your cash flow.

Claim the Qualified Business Income Deduction

The Qualified Business Income (QBI) deduction allows self-employed individuals to deduct up to 20% of their qualified business income. This can provide a significant tax savings, so be sure to check whether you qualify for this deduction.

Disclaimer

This content is for educational purposes only and does not constitute legal or tax advice. Please consult a tax professional for specific guidance. Noortax Service, Inc., established in 1999, can assist you with managing your taxes as a self-employed individual. Contact us today at www.Noortax.net or call us at 586-481-6134.

Need Help with Your Self-Employment Taxes?

If you’re self-employed and need help managing your taxes, Noortax Service, Inc. is here to assist. We’ve been helping individuals and businesses with their tax needs since 1999. Contact us at 313-873-5338 for professional and reliable tax services.