If you are self-employed, your tax situation will be different than that of someone who is an employee. Preparing self-employed taxes can be a bit of a minefield, but you can reduce your tax bill by taking advantage of deductions. Here are some tips for preparing for your self-employment taxes.
1. Keep on top of your paperwork
If you’re self-employed, you’re responsible for keeping your own records, especially your income and expenses. To take advantage of tax deductions, you’ll need to keep hold of all relevant receipts in case you’re selected for an IRS audit.
2. Decide how you’ll pay