What Freelancers Should Know About Taxes


What Freelancers Should Know About Taxes

Quick summary:

1.  There are seven tax brackets for the 2021 tax year: 10 percent, 12 percent, 22 percent, 24 percent, 32 percent, 35 percent and 37 percent. 

2. While S-Corporation income isn't subject to self-employment taxes the way sole proprietor income is, if you elect to be taxed as an S-Corporation, you must pay yourself a salary in the form of W-2 wages that are subject to FICA taxes, which is known as reasonable compensation.

3. An S-Corporation does not pay tax; instead, profits and/or loss flow to the taxpayer and is claimed on their personal tax return

#biyro #entrepreneur #blackbusiness #taxreturn #taxseason

More: https://biyro.com/blog/freelance/what-freelancers-should-know-about-taxes/

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