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Entries in Self-Employment (1)

Monday
Feb142011

Tax Tip: Some Help for the Self-Employed

Photo Courtesy - Getty Images(NEW YORK) -- In this economy, many people who haven't been able to find jobs have started working for themselves.  And in the eyes of the IRS, it's a whole different ballgame.

For the first time, you might be facing estimated quarterly payments, the 1040 Schedule SE and a whole lot of organizing. “A person should be keeping an excel spreadsheet or using some software to keep track of everything,” said accountant Janice Hayman, who says there's a new tax break for the self-employed this year.

“Their health insurance premiums will now be, for 2010 only, deductible against their self-employment tax.”

And for next year's taxes?

“The self-employed also get a benefit of the employees’ reduction in FICA tax,” Hayman said. “There's a two percent reduction from 6.2 percent down to 4.2 percent.”

It's like getting a 2 percent raise in 2011.

Hayman warns again to keep your records, because the self-employed are more likely to face an audit.

Copyright 2011 ABC News Radio







ABC News Radio