Being self-employed or earning extra cash as a gig worker can be great, but paying higher taxes is not so great. The self-employed and those in the gig economy face additional taxes as a result of their endeavors, and those higher tax rates can really take a toll on their earnings.
Those new to the world of self-employment and gig work are often surprised by these extra taxes, most notably the self-employment tax. Unlike their counterparts in the corporate world, the self-employed must pay both sides of the Social Security and Medicare tax, essentially doubling these obligations.
Depending on how much you make, these higher taxes could be a game changer, but there are ways to turn the tax code to your advantage. While it is true the self-employed face higher taxes, it is also true that they have many tax breaks available. Taking advantage of those tax breaks could … Read the rest