The Blog

Looking for a virtual bookkeeper?

Schedule a 15-min call to see if we're a good fit.

Get in touch

Ways to Save Money on Your Self-Employed Taxes

Running your own business comes with a lot of financial responsibilities, including paying taxes. If you’re self-employed, you’re responsible for paying the entire amount of Social Security and Medicare taxes, as well as your income taxes. This can add up to a significant amount of money owed at tax time. However, there are some ways you can reduce the amount of taxes you owe as a self-employed individual. Here are seven tips for saving money on your self-employed taxes. 

1. Claim Your Tax Deductions.

 One of the best ways to reduce the amount of taxes you owe is to take advantage of all the deductions that are available to you. When you’re self-employed, you can deduct a wide variety of business expenses, from office supplies to mileage. Be sure to keep track of all your business expenses throughout the year so you can take full advantage of these deductions come tax time.

2. Take the Mileage Deduction.

 If you use your personal vehicle for business purposes, you can deduct a portion of the costs associated with owning and operating your vehicle. The mileage deduction allows you to deduct 62.5 cents per mile driven for business purposes in 2022. This deduction can add up quickly if you use your car often for business purposes. 

3. See if You Qualify for a Home Office Deduction. 

If you have a dedicated workspace in your home that is used only for business purposes, you may be able to take advantage of the home office deduction. This deduction allows you to deduct a portion of your mortgage interest or rent, as well as other expenses such as utilities and insurance. 

4 Turn Charitable Donations Into Expenses. 

another way to save money on your taxes is by donating to charity organizations that are related to your business. For example, if you own a pet store, you could donate pet food or supplies to a local shelter. By doing this, you’ll be able to deduct the value of the donations from your taxes. 

5 Contribute to a SEP IRA. 

A SEP IRA is a retirement account designed specifically for self-employed individuals. By contributing to a SEP IRA, you can lower your taxable income and start saving for retirement at the same time.

6 Deduct Health Insurance Costs.

 If you’re self-employed, you can deduct the cost of your health insurance premiums on your taxes. This is a great way to save money if you don’t have an employer-sponsored health insurance plan

Being self-employed has many advantages, but it also comes with some challenges, including having to pay higher taxes than employees who have employers who withhold taxes from their paychecks.. However, there are some things self-employed individuals can do to minimize their tax liability, such as taking advantage of deductions and contributing to a SEP IRA. By following these tips, you can save money on your self-employed taxes and keep more money in your pocket come tax time.

about the blogger

Hey there!

Hi! I'm Marinda Broadbent!

I’m an expert QuickBooks Online Bookkeeper, a nerd when it comes to the numbers, and my obsession is teaching business owner their numbers so be confident on grow their business (without it taking over their life).

Leave a Reply

Your email address will not be published. Required fields are marked *

Looking for a virtual bookkeeper?

Schedule a 15-min call to see if we're a good fit.

Get in touch

Read this post →

Running your own business comes with a lot of financial responsibilities, including paying taxes. If you’re self-employed, you’re responsible for paying the entire amount of Social Security and Medicare taxes, as well as your income taxes. This can add up to a significant amount of money owed at tax time. However, there are some ways […]

Ways to Save Money on Your Self-Employed Taxes

We take bookkeeping off your plate

More time each day

You can focus on what you love to do by giving your time back to you.

Know your Numbers

Each month you receive your Financial Statements plus video what means.

Peace of mind

Knowing that your books are up to date each month and be ready for tax time.

SCHEDULE A FREE CONSULTATION

How Virtual Bookkeeping Works

We start with a clean slate

We do your bookkeeping

We do a diagnostic review

You’ve been using QuickBooks for a while and want an expert to review your file and make sure you’re not making mistakes.
After the file review, you’ll know if you’re doing your bookkeeping correctly, what changes you need to make, and most importantly, you’ll be able to trust your numbers.
Read more →

We sets you up for success by going through your past books line by line and bringing them up to date. This includes a detailed review of your chart of accounts to ensure all historic transactions are correctly organized.
Read more →

As your bookkeeper  we will categorize transactions and reconcile accounts in QuickBooks. They can even run a personalized report, ensuring a clear picture of your business performance and accurate records for your accountant at tax time.
Read more →

START NOW

BOOK CALL NOW

$200

$500*

$250*

/mo

starting at

starting at