From Go Banking Rates, Valerie Rind identifies common tax mistakes that independent contractors make. Valerie recommends filing income tax returns, paying self employment taxes and treating self-employment as a business. She writes:
The most common mistake self-employed individuals — including independent contractors — make is not treating self-employment as a business, said Scott Goble, a certified public accountant and founder of Sound Accounting PLLC, based in Chickamauga, Ga.
“When one is self-employed, they are in fact operating a small business,” Goble said. “As a small-business owner, a self-employed individual can deduct many expenses that are not necessarily deductible for employed individuals.”
Business-related expenses include many costs that might be deductible under IRS laws, such as:
- Home office
- Supplies
- Use of a vehicle
- Travel
- Personal computer and software
- Meals and entertainment
- Insurance
- Uniforms
- Tools
- Publications
- Accounting and legal fees
- Postage
- Education
- Professional association dues
Read the full story at 5 Tax Mistakes Independent Contractors Make
