6 Financial Benefits of Working from Home

Do you work from home? Are you considering it? It can be a big financial benefit for you. I've been working from home for several weeks now since I quit my day job. I've loved it. More importantly, I feel like I can give some honest feedback about how you can save by working from home more. Here are a few ways I've been saving or at least had the opportunity to save: 1. Lower Car Insurance That's right. One of the first things I did once I no longer had a … [Read more...]

Am I Required to Make Estimated Tax Payments on Extra Income?

As you know, I have been self-employed for quite some time now. Most of my self-employment income doesn't have any taxes withheld and is reported on a 1099. That means I have to make quarterly estimated tax payments. There can be a lot of confusion about how to handle such estimated tax payments. Coincidentally, I just received a related tax question from a reader: My wife has a full-time job in which taxes are withheld from her paycheck … [Read more...]

Everything You Need to Know About the SEP IRA

This article contains information on the SEP IRA contribution limits. As a self-employed business owner, you may be looking for the right kind of plan to save for retirement. But it is easy to become overwhelmed about which is best for your situation or your company. For self-employed individuals, the SEP IRA may be one of the easiest accounts to set up and keep going. It may also be one of the less costly plans available to business owners. It certainly … [Read more...]

How to Deal with an Incorrect 1099 Form [Helpful Example]

If you receive an incorrect 1099, first reach out to your client and try to get it corrected. If that doesn't work contact the IRS at (800) 829-1040 for instructions. You may just have to include a letter with your tax return stating why there is a discrepancy. Last year, Jason did some independent contractor work for a venture capital-backed company in Houston, about four or five hours away from his home in the Dallas-Fort Worth … [Read more...]