Selfemployment explained.

[moneysense]

Self employment is very different from having a regular 9 to 5 job in as much as you are basically your own boss and are only contracted onto another business to earn your living by providing a service or a product to them.

The difference between a business owner and the self employed is that the business owner doesnt have a hands on approach to running the company, his employees do the work that is needed, while the self employed person is totally hands on when it comes to the business they offer.

Also, the advent of the internet has allowed more people to become self employed and therefore offers a money making opportunity for those who couldnt find work elsewhere.

As far as taxes go, the self employed will usually pay about 15.30% and there are more deductions that are allowed for the self employed, among these are cell phones, uniforms, travel, computer equipment and other products that are used to run a home office. Plus the home office itself is allowable as a deduction.

When the tax is divided up, that is the 15.30% tax that the self employed pay, 12.4% goes to social security and 2.9% towards medicare.

Visit irs.gov to find all of the deductions that are available to you if you are self employed.

[saveohlot]

Thank you so much for this information it does seem to get confussing when trying to get things ready for tax time but a help in that is to keep every thing on file during the year so everything is right at ur finger tips but these tips fo help thoses who know nothing about filing a self employment taxes so thanks again for all the information