Self-Employed Individuals

There are two types of self-employed people, from the IRS standpoint.  Either you are a percentage shareholder in a corporation/partner in a partnership, or you are a sole proprietor. 

Both are still required to file tax returns.

However, the key difference with sole proprietors is that they are required to pay Social Security and Medicare Tax if they file a profit from their business.  Most people who are sole proprietors tend to be those who are running home-based businesses, usually not full time.  Occupation type does not matter as to the chosen form of tax reporting method, but it is true that the higher the profit filed from a sole-proprietorship, the higher the federal, state, Social Security, and Medicare Tax that is liable to be paid.

Those who are self-employed through an IRS approved entity (i.e., an LLC, a C-Corporation, an S-Corporation, etc.), are NOT required to pay any Social Security or Medicare Tax on the profit they file from the entity.  However, if the owner or any employee draws a salary of any kind from the chosen entity, Social Security and Medicare taxes are liable to be paid by both the employer and the employee. 

That is the chief difference with regards to taxes for self-employed individuals; however, personal legal liability is a completely different issue.  Most professionals seek limited liability due to the nature of their chosen profession (doctor, lawyer, insurance agent) and have malpractice insurance policies in place for such unforeseen personal injury claims. However, most self-employed individuals seek an initial but robust form of legal protection from personal liability claims in the type of entity they choose for conducting their business.  Any business practices attorney can advise you on that particular matter.

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2017 Annual Adjustment Amounts: Tax Rates, Deductions, & Exemptions;


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2016 Annual Adjustment Amounts: Tax Rates, Deductions, & Exemptions;

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2015 Annual Adjustment Amounts: Tax Rates, Deductions, & Exemptions;

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2014 Annual Adjustment Amounts: Tax Rates, Deductions, & Exemptions;

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Questions & Answers on NII & Additional Medicare Tax

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Are you living abroad and a dual citizen?? Click here.

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"OVDI" (Offshore Voluntary Disclosure Program) Remains Open For Those With Undisclosed Foreign Income/Assets;

Other Options other than OVDP remain open too, like Streamlined Procedures.

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DNA India, a leading Mumbai daily, quotes Vimlan Tax Services. Click here...

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Mileage Rates for 2016 are here..

  1. 54 cents per mile for business miles driven (down from 57.5 cents in 2015);
  2. 19 cents per mile driven for medical or moving purposes;
  3. 14 cents per mile driven in service of charitable organizations;


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Mileage Rates for 2015 are here..

  1. 57.5 cents per mile for business miles driven (up from 56 cents in 2014);
  2. 23 cents per mile driven for medical or moving purposes;
  3. 14 cents per mile driven in service of charitable organizations;


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International Income Tax Liability...


Worldwide Income Reporting and Foreign Accounts

Most people filing US tax returns know if they are a US Citizen or a Greencard holder, but most do not know if they are a US "tax" resident. You may read the April 2011 E-newsletter we put out which explains the classifications mentioned above or call our office to request an appointment with a qualified tax advisor to discuss your case. Our December 2015 E-newsletter is out as well.