Small Business, Self-Employed, Independent Contractor, Free Lancer, etc.
You are making money your way. Whether it’s just you, or you have a few employees, you have income from providing a service, product or both. You should report all income to the IRS.
Starting 2024, IRS will start requiring all payment apps and online marketplaces to submit 1099-K to anyone receiving over $5,000. IRS is expected to lower this amount in future years. What this means for you is that the IRS knows about the money that you are receiving.
Strategy to Lower Your Taxes
First, keep track of all expenses. Your business related expenses will lower your net income. Which means you will pay less taxes on the money you make..
Are You Doing These Things?
Tracking Vehicle Expenses -mileage, gas, repairs, etc.
Do You Have a Home Office -it must be a dedicated area; exclusively used for your business
Keeping Tracking of Merchant and Bank Fees
Did You Purchase a Computer, Phone or Other Equipment
Tracking Online Marketing Expenses
Did You Pay Sales Commissions
Did You Pay Someone to Create Videos
Are You Paying for a Virtual Assistant
Tracking All Supplies Purchased
Tracking Business Meals
Tracking Business Insurance
Want to know more?