Beware the Taxes of Self-Employment

Senior executive in home office with two monitors and keyboard on leather desk and looking at paperwork on deskThat 15.3% is likely to be a stunner.

By Barry J. Friedman, CPA
IndustryNewsletters

Your clients are self-employed if they’re in business for themselves – including a part-time business. That means they’re also their own tax manager!

MORE: 6 Key Facts About Excise Taxes | How Clients Should Gather Their Papers for Taxes | The Latest Fraud Problem: Synthetic Identities | How to Challenge Property Taxes | Real Estate, IRAs & Clients | Percentage-Withholding for Clients | Bitcoin: What Clients Need to Know
GoProCPA.comExclusively for PRO Members. Log in here or upgrade to PRO today.

Your clients can be self-employed as a sole proprietor/an independent contractor, or a member of a partnership or of a limited liability company. As such, they need to file an annual income tax return and pay estimated taxes throughout the year on their income.