Self Employed Don’t Forget Tax Deductions Reduce Self Employment Taxes

[@JJTHECPAusa]

Thanks for watching! Check out my "Tax Season Boot Camp" seminar www.jjthecpa.com/jjseminarpackage

[@DianaHernandez-lr7on]

I would love to set up something where my husband can talk to you about our situation. Do you accept consultations?

[@JJTHECPAusa]

@@DianaHernandez-lr7on Thanks so much! Email me what your wanting to visit on at [e-mail]

[@miraclelove991]

Captain America, I wasn’t to go to online EA school. Tax Mama schools/classes start to early after taxes.

[@JJTHECPAusa]

@@miraclelove991 I’ve heard great things about Surgent’s EA online course. On Demand. 15% discount code I saw is “PARTY23” Here’s a link. www.surgent.com/exam-review/ea-exam-review/ea-shop-products/?Google&OE_Brand_Modifier_Search_EA&EAProducts&?Google&OE_Brand_Modifier_Search&hsa_acc=4567591789&hsa_cam=20039880666&hsa_grp=151522989554&hsa_ad=656658489500&hsa_src=g&hsa_tgt=kwd-410819335339&hsa_kw=surgent%20ea&hsa_mt=p&hsa_net=adwords&hsa_ver=3&gclid=CjwKCAjwhJukBhBPEiwAniIcNW1W1ChHH39N8XDzyarXMF8fSP1wXXEf5U0WH_X3FFwKENvaxzAT2RoChyEQAvD_BwE

[@AlvaBarr]

JJ, I like the way you think and that brazen confidence you bestow to your viewers. Of course, backed up with the most valuable key information you share in every video (which I've watched). You have helped me as self-employed learn information not received, known or applied by local CPA. Many of this information I wasn't too sure if I should claim as business deduction with certainty or confidence, but you clarify things and give the reassurance I was looking for and I took that to paper. Thanks to your videos with unique valuable knowledge and paving the way, I had a pretty impressive refund last year to the point that I now look forward to tax season. Lol. You're the best!😉🥰THANK YOU!

[@JJTHECPAusa]

Wow! Thank you so much for taking the time to write such wonderful compliments! I really appreciate that, and thrilled it’s helping you with your tax picture! And I’m proud that you are taking your tax picture into your own hands to better understand what you can do to help you be successful! You made my day! So thank you, thank you!

[@AlvaBarr]

@@JJTHECPAusa Captain America 🇺🇸 "How do we do this? As a team!" You were my team JJ. Thank you.😘

[@JJTHECPAusa]

@@AlvaBarr Thank you much!! Love it!

[@SuperJ213]

I will keep you in mind for the coming tax year. Nice piece you've got in the background.

[@JJTHECPAusa]

Thank you so much!

[@anastasiamaslova648]

What if we were self employed but don’t have a registered business? For example, I babysit and that requires for me to use my car but I don’t have an LLC or anything like that. Can I still apply?

[@JJTHECPAusa]

Yes! Being self-employed doesn’t require you to be an LLC or anything like that. You definitely can deduct anything related to that.

[@latayviaross825]

Same, would you need supporting documents for taxes?

[@JJTHECPAusa]

@@latayviaross825 Always

[@MrsBuddevil]

Good question. What if you don't own a vehicle, but borrow someone else's vehicle to do your business errands?

[@JJTHECPAusa]

@@MrsBuddevil Won’t count as it needs to be your vehicle.

[@sarabullara9201]

Awesome video. Thank you!!

[@JJTHECPAusa]

Thank you!!

[@christinaflores9878]

Hello! I file schedule se and work as a videographer. I usually get paid on payment processor apps (cashapp, paypal, etc). To withdraw money from these apps they charge a fee, can I deduct these as a business expense? I've been putting down the total amount before any fees and wonder if I'm paying more than I should.

[@JJTHECPAusa]

Hey! Such a great question! Yes, deduct the fees you paid. Those payment processor apps are required to show the gross amount they received on your behalf, and unfortunately don’t typically then provide a sum annual total of their fees. Without a doubt you get to the deduct those fees!

[@shakamclennon4304]

JJ the client needs bookkeeping lol. Looking at a January Py statement in April CY who is going to remember what was the abc123 description for 167.54 lol.

[@caraclark1293]

Hello JJ, I have a few questions! My fiance has his own sole proprietor business (Tree Business), He bought a truck for $14,000 US DOLLARS. Tons of equipment tree helmet, ropes, boots, chainsaws, ect ect. However, He has his small business but His buddy he worked with, he worked as a contractor for him. His buddy was gave him a W-2 but he paid him thru Venmo for side jobs. The business unfortunately closed down due to covid the 1st week of September and my fiance started up his own sole proprietor small tree business. Can he take advantage of the business Tax credit because of this, that you speak of on your channel because he was out of work

[@JJTHECPAusa]

Hey Cara! He absolutely, 100% can deduct all those expenses under the business he started, regardless that such items were bought before he started it.

[@stevemiddleton9645]

Thank you JJ 😊

[@JJTHECPAusa]

Thanks Steve!

[@matthoward23]

a big one in the northeast is the PTET (pass thru entity tax) which i've utilised on NY/NJ s=corps . NY PTET and NJ called BAIT (business alternative income tax) . it's a work around for the 10k salt limit. i dont see a PA PTET , probably because PA is fixed 3.07 rate one client i claimed 50k PTET deduction of 1120s.. right there i paid over a year tax advisory fees have anything like this in oklahoma or surrounding?

[@JJTHECPAusa]

Oklahoma has this as well. It wasn’t worth it until the law recently changed. So I’ll be implementing it for 2023

[@caraclark1293]

Due to business shutting down cause of covid? Also is the $14,000 able to be used as a business tax credit or is it too much? I do his quick books and I make sure he keeps every single receipt. I am decent at doing taxes but with all these new provisions, I have some questions. Love your channel ❤️ It's very informative, Thanks you for all your help! Also can he claim the business credits and Earmed Income Credit for our child?

[@JJTHECPAusa]

Thanks for the kind words! I appreciate it! The $14K is not too much. Great job on QBs! Love it you have him keeping receipts! On the EIC, it’s all based on your overall income. So, if taking the 100% deduction on the $14K reduces the income too much (which is possible with EIC), consider just doing regular depreciation over 5 years; as you get to decide either. EIC requires low income of course, but sometimes with too low of income (because of deductions), it can hurt you getting EIC. IRS requires we report all income, but we are not required to tax deduct everything possible. Hope that helps!!

[@caraclark1293]

@@JJTHECPAusa yes that helps, I'm sure he will make to much for EIC, he would get more with the business credit. I will just claim our child then. Thank you for answering! Much appreciated!

[@JJTHECPAusa]

@@caraclark1293 You bet!

[@Soccer10139]

Good talk

[@JJTHECPAusa]

Thank you!

[@alimortezai4639]

This guy’s the best

[@JJTHECPAusa]

Thank you Ali! I appreciate it!!!

[@alimortezai4639]

@@JJTHECPAusa JJ do you do consulting or take on clients from here? Thx

[@JJTHECPAusa]

@@alimortezai4639 thanks so much for asking! Unfortunately I stop taking on clients in 2018 and have not started doing any consulting at this time. A great resource is to check the society of CPAs in your state.

[@alimortezai4639]

No problem JJ! And appreciate the response. I’ll check out the resource you suggested 👍🙏

[@JJTHECPAusa]

@@alimortezai4639 You bet! Appreciate you!

[@barnz008]

Funny you mentioned motorcycle. I rode mine 5k this year and can’t see a way to include it as a mileage expense other than treating it as a ‘vehicle.’ I file Sch C as a sole proprietor.

[@JJTHECPAusa]

If those miles were for business, yes, it’s deductible, and it is treated the same as a vehicle

[@frankiecarrrierivg03]

Did you use a motorcycle to deliver Uber eats or doordash

[@JJTHECPAusa]

@@frankiecarrrierivg03 no. If one did, should count

[@barnz008]

@@JJTHECPAusa They sure were. Thanks. Your channel is golden!

[@JJTHECPAusa]

@@barnz008 Thank you my friend!

[@MrsBuddevil]

Watch what videos? Sched c?

[@JJTHECPAusa]

See links in body of video

[@king-vw6ve]

Can you do my erc

[@JJTHECPAusa]

At this time I’m not able to. Sorry

[@king-vw6ve]

@@JJTHECPAusa ok thanks for replying

[@JJTHECPAusa]

@@king-vw6ve You bet! Appreciate it!

[@miraclelove991]

Hi Captain America,

[@JJTHECPAusa]

Hi Miracle Love!

[@MrsBuddevil]

Is 1099K the same as 1099nec

[@JJTHECPAusa]

It’s not. 1099-K is from credit card processing companies. 1099-NEC is businesses sending it to those they pay, that fall under the requirements

[@suzettekogut243]

Wow