7 Must-Know Tax Tips for the Self-Employed

Working for yourself has a ton of benefits — a flexible schedule, the opportunity to pursue projects you love, and the ability to work in your pajamas. While being self-employed can be truly rewarding, it can also be something of a headache come tax time. Between regular income taxes and self-employment taxes, Uncle Sam isn't exactly helping pad your wallet. Still, taxes are a necessary evil, so we've created this handy guide to help minimize your stress this tax season.

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One of the worst parts about doing your taxes is that self-employed individuals often have to pay more than traditional employees. Avoid potential surprises by educating yourself on the types of taxes you'll face.

One of the worst parts about doing your taxes is that self-employed individuals often have to pay more than traditional employees. Avoid potential surprises by educating yourself on the types of taxes you'll face.

Income Taxes

Self-Employment Taxes

Social Security Tax:

Medicare Tax:

Total:

You'll need to fill out a few more forms than you would for a regular tax return, including:

The best way to reduce the amount of income tax you owe is to deduct business expenses, which you report on Schedule C. You should be prepared to back up the validity of these deductions in case of an audit, however.

Some of the most common deductions are:

Remember, any expense for something you use for both business and personal reasons can only be partially deducted.

For more tax help from Napkin Finance, click here.