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Self-Employment Taxes; For New Freelancers and Small Biz Owners
This Article is For Anyone Who Has Received the Following:
1. 1099-MISC,
2. 1099-K, or
3. 1099-NEC (Non-Employee Compensation)
If you received either of the three above tax forms, YOU are now in business, regardless of what your intensions were. Before you get upset, know that this is a good thing, a very good thing. Why?
Because now you become part of an elite group of over 25 million people who qualify for certain tax write-offs which employees cannot. Yes, there are more reporting requirements, but once you get the hang of it, you will never want to work for someone else again.
Why Congress Looks Out for the Small Biz Owner
I love it when students ask this question because it means they understand Congress votes on each and every tax code that is implemented. This also means students understand that they have joined a special group when it comes to tax write-offs.
The reason Congress bends over backwards to provide new freelancers and small business owners with an abundance of tax benefits is because the small business owner employs over 60% of the entire U.S. workforce. When small…
