Guide to Tax Tips for the Self-Employed Professional – Insights from Jill Flinton, CPA
Being self-employed comes with incredible freedom—choosing your own projects, setting your own hours, and growing your business on your terms. However, one challenge that many self-employed professionals face is managing taxes. Without an employer handling withholdings, staying on top of tax obligations is essential to avoid surprises.
At Hangr Coworks, we love connecting our members with valuable resources, and who better to share expert tax advice than our very own member, Jill Flinton, CPA? Here are Jill’s top tax tips to help freelancers, consultants, and small business owners navigate tax season with confidence.
1. Keep Track of Your Income and Expenses
The key to stress-free tax preparation is maintaining accurate financial records. Use accounting software or a simple spreadsheet to track income and categorize expenses throughout the year. This helps ensure you’re not scrambling to find receipts when tax deadlines approach.
2. Know What You Can Deduct
As a self-employed professional, you can deduct a range of business expenses that reduce your taxable income. Common deductions include:
- Home office deduction – If you work from home, a portion of your rent/mortgage, utilities, and internet may be deductible.
- Coworking space fees – Your Hangr Coworks membership is a legitimate business expense!
- Office supplies and equipment – Computers, printers, and even pens and notebooks count.
- Marketing and advertising – Website costs, social media ads, and business cards are deductible expenses.
- Professional development – Courses, workshops, and certifications that help grow your business.
3. Set Aside Money for Quarterly Taxes
Unlike traditional employees, self-employed individuals don’t have taxes withheld from their income. The IRS requires estimated quarterly tax payments if you expect to owe more than $1,000 in taxes for the year. Mark your calendar for these deadlines:
- April 15
- June 15
- September 15
- January 15 (of the following year)
Setting aside a percentage of your income each month for taxes will prevent financial stress when payments are due.
4. Understand Self-Employment Tax
Self-employed individuals must pay self-employment tax (15.3%) to cover Social Security and Medicare, in addition to income tax.
5. Consider Retirement Contributions
Saving for retirement not only secures your future but can also reduce your taxable income. Self-employed professionals can contribute to:
- SEP IRA (Simplified Employee Pension)
- Solo 401(k)
- Traditional or Roth IRA These options provide tax advantages while helping you build long-term financial security.
6. Keep Business and Personal Finances Separate
Open a dedicated business bank account to track income and expenses more efficiently. This simplifies bookkeeping and makes it easier to claim deductions accurately.
If you are using a credit card, ideally have one in the business name. If that is not initially possible, use one card exclusively for business expenses.
7. Work with a Professional CPA
While DIY tax software can help, having a knowledgeable CPA like Jill Flinton on your team ensures you’re maximizing deductions and staying compliant with tax laws. A tax professional can provide personalized guidance and help you plan for future growth.
Stay Tax-Savvy and Focus on What You Do Best
Tax season doesn’t have to be overwhelming. By staying organized, planning ahead, and leveraging expert advice, you can keep more of your hard-earned money while remaining compliant with tax regulations.
Want to connect with other professionals like Jill Flinton and gain valuable insights for your business? Hangr Coworks is more than just a workspace—it’s a community that helps you thrive.
Need personalized tax advice? Reach out to Jill Flinton, CPA, and take the stress out of tax season!
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