For many, being self-employed is exciting: You’re your own boss, so you get to work how you please, where you please, when you please, and for whom you please. But that greater freedom comes with greater responsibilities. And nowhere is that more true than with your taxes.
If you’re in business for yourself, or you want to be, there are certain differences between your tax return and that of an employee. For starters, the tax code allows a much greater range of deductions for the self-employed than for employees. The greater value of these deductions can help offset the greater work expenses that the self-employed have.
In this section, we’ll take a look at some of the details, tax-wise, of working for yourself: