Here are five frequently made tax mistakes by self-employed individuals:
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Neglecting to Track Expenses: Failing to keep meticulous records of business expenses can lead to missed deductions.
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Ignoring Estimated Tax Payments: Not making quarterly estimated tax payments can result in penalties and a hefty tax bill at the end of the year.
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Misclassifying Workers: Incorrectly classifying employees as independent contractors can lead to back taxes and fines.
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Not Separating Personal and Business Finances: Mixing personal and business funds can complicate accounting and tax reporting.
- Overlooking Retirement Contributions: Missing out on retirement plan contributions can limit savings and tax benefits.
Neglecting to Track Expenses: Failing to keep meticulous records of business expenses can lead to missed deductions.
Ignoring Estimated Tax Payments: Not making quarterly estimated tax payments can result in penalties and a hefty tax bill at the end of the year.
Misclassifying Workers: Incorrectly classifying employees as independent contractors can lead to back taxes and fines.
Not Separating Personal and Business Finances: Mixing personal and business funds can complicate accounting and tax reporting.
Common Tax Mistakes for the Self-Employed: Avoid These Pitfalls When you're self-employed, navigating your tax obligations can seem overwhelming. It’s ...
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