5 Tax Mistakes Independent Contractors Make

tax formsFrom Go Banking Rates 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 

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