So the dreaded tax season is here…and my husband and I are gearing up to go to our accountant soon. We’re both self employed for our second tax season in a row, so we’re still kind of getting used to the fact that we owe the IRS this year again…(ugh)

In today’s day and age, technology and the advance in telecommunications have caused more contractors, consultants, and freelancers to start their own independently run businesses. Self-employment is no longer just a way to make some extra money on the side - for millions it is a full time career. Along with the perks of self-employment though come some concerns, such as with taxes. Therefore, here are some tips for those who are self employed and have not yet filed this year’s taxes. If you have already filed, keep this info handy for next year!

1.) Maintain excellent records: Save all receipts and be able to support each of your deductions. Keep receipts and records of business travel and other expenses including office supplies, postage and shipping costs, dues, subscriptions, and anything else business-related.

2.) Don’t forget that office space: Whether you have a separate office facility or are using a portion of your basement, you can deduct the percentage of your home used exclusively for business purposes. Take this percentage off of your mortgage or rent payments as well as your utilities. For more info on home office deductions, check out my previous post on this.

3.) Deduct your office phone: If you have a phone dedicated just for your business, deduct these phone bills.

4.) Deduct child care costs: Deductions for daycare, nanny care, babysitting and other childcare types are allowed - be sure to keep tally of all child care costs spent. (In most cases, your provider will have this ready for you at the end of the tax year.)

5.) Set up a retirement plan: Consider setting up a self employed qualified retirement plan for tax purposes and for the sake of saving money for your retirement years.

6.) Defer income if need be: As a self employed individual, you can alter your billing slightly to defer income if you are approaching a higher tax bracket.

7.) Deduct half of FICA payments on your 1040 form: Being self-employed, you pay both the employer and employee portions of Social Security tax. On the upside, you can deduct half of these payments on your 1040 form.

8.) Purchase year-end business items: Similar to how you can elect to defer income, if you see that your income is high, you can make many more year-end business purchases to add more deductions before the end of the year.

9.) Get the right people on your side: Look for tax help from someone who is familiar with self- employment.

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