Self-Employment Tax, and How to Minimize It

A lot of self-employed individuals get upset around tax time when their accountants tell them they owe an extra 15.3% in tax. It can be a bit of a gut punch to those just expecting to pay income tax. Unfortunately, income tax does not cover FICA—Social Security and Medicare. An employee generally splits those taxes with […]

Tax Court Win for Artists and Moonlighters: How to Deduct Your Losses Against Other Income

The US Tax Court issued an opinion that I think should be considered a win for artists and moonlighters everywhere. Crile V. Commissioner, T.C. Memo. 2014-202. Generally IRC section 183 acts to disallow taxpayers from claiming losses from activities “not engaged in for profit.” It provides a safe-harbor for activities where income exceeds deductions for […]