Self Employed Taxes Explained (And How to Avoid Them!)

[@lmurjohnson9684]

💎 thanks for breaking this information down!

[@youmayberight2434]

Thank you Sherman. I have LLC. No workers but me. Hope I qualify for this.

[@FinancialFreedomMadeSimple]

Thanks Sherman for this great explanation.

[@ThriveWithLouise]

So if you grow expand your business and make more money over $150,000 a year that can then minimise the taxes??? Yea this s corp is what I’m looking into. This info is so good, you’ve broken it down perfectly this is exactly what I wanted more info on. The s corp taxes

[@ChoiceDesignsPro]

Hi Sherman, you said once your income exceeds 150,000 that the SE tax starts to phase out. Can you expand on that? What do you mean exactly?

[@newarieslifestyle9957]

What about if you are a live streamer and you collect diamonds or beans for exchange in cash? What would that be considered and how should I go about calculating my taxes or how how should it be labeled?

[@ajahncodar]

What do you mean diamonds and beans? I know very little but from what I understand, with crypto for example, let's say I buy a coin for $1 and at the end of the year it is worth $100. Even though the "money" is still wrapped up in the coin, for all the tax collectors care, I have made $99, despite the fact that after I file and pay, the coins value could drop to $0 before I ever cash out and have tangible profit. Would love if any more tax savvy, wise people could confirm this is accurate but, that to say, if you acquire monies, they want to tax you on it. Otherwise, we would all simply claim that our "income" is actually just money people give us as a gift for no reason, but if you have a bank account, what transpires is visible

[@CarlosEduardoDaCosta]

Hi! thank you for your video. I have a question concerning Profit and Loss Statement. For example I need to give the government's Health Insurance an update on my income for 2022, this is the first year I am totally as self employed. My question is: the total amount of my income report should be before or after taxes? That is my TOTAL INCOME minus TOTAL EXPENSES/DEDUCTIONS or TOTAL INCOME minus TOTAL EXPENSES/DEDUCTIONS minus TAXES? Should I apply any On Net Profit percentage 92.35% to Net Profit? Thank you

[@thomascrompton7775]

Writing my over 6000 lb vehicle off in full the 1sy year is the gas used for that vehicle during buisness able to be written off or no since taking the full price write off all in 1 year.

[@macgraves3763]

I'm not an expert but gas is probably a business expense

[@66NOI773H]

I'm pretty sure that a business vehicle usage deduction can be taken one of two ways, the most common, there may be others, not positive. But, the two common ways is 1.) The simplified way, as in so many other tax deductions, you add the mileage up for the total tax year usage and then multiply by the IRS-given monetary amount per mile to arrive at your total vehicle usage deduction for the year... Done. 2.) You keep good records of mileage, maintenance, fuel, incidentals, non-scheduled service expenses and scheduled service expenses, etc. You get very detailed and have proper proof of every single expense/deduction taken and then total that all up for your itemized vehicle usage total annual deduction. I know in the simplified method, fuel, milage and wear-n-tear are all included and you're losing out on the ability to itemize non-scheduled service expenses. However, if you follow the annual "Depreciation tables/rates you're going to get some if not all of those service expenses covered therein. Having taken total vehicle write-off in one whack, you of course forfeit your ability to claim anything, for vehicle deductions in all subsequent years that it's in service. Also, it should be noted if you took a total deduction, it should have been for the cost of the vehicle that you paid at the time of putting it in service. If bought new for the business and not used for any other reasons besides business use, then you could figure in cost, loan interest, warranty expense above factory standard, etc, etc, etc! If you didn't include all that in your one-whack deduction, you either didn't buy it new for the business or you pretty well screwed yourself out of a substantial amount of tax deduction available and not applied. And since it was a one-whack, you can't recover that un-applied amount, it's forfeit. If you bought the truck outright, new or used, then all those extras costs were, of course not available for use as a deduction and so you're on target for your max deduction. NOTE: I'm not real sure if you're allowed to do the one-whack like you did if the vehicle was/is going to still be in service to the business, and/or the business is not ceased and closed down for all intents and purposes. Again, not sure, but think you're supposed to spread it out as that's how the actual depreciation occurs and costs are incurred. Without more info on exactly who, what, why, where and when of the business and the vehicle, hard to get more specific. There's a lot more variables that could effect how and why and the type of business I think can even have an effect on the totals, too if I remember correctly, as can the state you operate out of and if you operate in other states as a routine part of your daily business. It of course can get even more complicated as the business structure does so, also! Lol, don't mean to go off the deep end on you, I'm a few years in business myself and used to lose a lot of money before really getting serious about taxes and so thought I'd flex my knowledge in the hopes the very gracious, Actual CPA, big guy might have a look and so I can see how I did on this quasi-pop-quiz, lol!!! 😬😳😱🤯

[@thomascrompton7775]

@@66NOI773H 179 deduction allows full write off in year purchased if vehicle meets certain criteria. Just not sure if you do that is gas still able to be written off. Ram 1500 6.5 ft bed no sliding back window over 6000 lbs.

[@66NOI773H]

@@thomascrompton7775 Hah, good stuff and new to me. Guess I went over the basics and missed the real question! 😬 I'm suppose it's helpful to someone at some point just the same so not a waste, but yeah, I'm gonna have to read up and learn something new! Thanks for the heads up and the reference for the truck!

[@Jensen-C]

Self employment being essentially taxed at 30% is fuckin Ridiclous. I just don’t have a lot of business’s expenses because I’m just a video editor. I’m kbmy 20 years old and still live at home. I was condiering moving out but after how much I pay in taxes every quarter there is no chance I can afford it now

[@ednasalinas8280]

If I am self-employed in a foreign country but file both local tax and US 1040, do I have to pay the Self-Employment tax as well? THANKS

[@godsdozer]

We are Fdddddddddddddddd

[@davidordonez1283]

The likes are at 666, Im not going to like it.