Monday, March 17, 2008

The IRS is not my friend

I received my completed tax forms back from my accountant today and am reminded, once again, that the IRS is not my friend. Self-employment tax, combined with the health insurance costs, make it difficult to freelance successfully.

On the other hand, the most significant way to reduce my self-employment taxes is to invest in my business. Legitimate expenses--purchasing office equipment, for example, or attending seminars and workshops--reduces my taxable profit.

But what do I need that I don't currently have? Or, what should I do that I'm not currently doing?


Kevin R. Tipple said...

you could hire staff. :))

Michael Bracken said...

Trust me, I've thought about it.

But I think I need to hire a maid service and a lawn service before I hire office staff.