Self-employment has been on the rise for some time now. Anywhere from Uber drivers to Independent Contractor work, it’s time to start looking into how to make the most of your mode of work.
As reported by the Wall Street Journal, Self-employed individuals pay a 15.3% tax (12.4% Social Security, 2.9% Medicare) on net earnings, unlike employees where employers split this cost.
Furthermore, self-employed folks have to do all their own bookkeeping rather than letting their employer take care of it for them. Tedious and bothersome may be good words to describe what many independent contractors feel.
Gig Economy And Self-Employment Taxes 2025
But there are many advantages in the midst of the extra load. For example, people who use a 1099 or are self-employed can write off many things as business expenses. Do you drive for work? There’s room to write that gas off on your taxes. Do you have lunch with clients? You may be able to write this off too!
How is that? Self-employers do not pay taxes on gross revenue. Instead they pay taxes on profit, which means many business related expenses can be deducted.
If you really want to dig deep into tax advantages, we recommend Tax Free Wealth by Tom Wheelwright. (He didn’t even pay us to say that).
The Banker Report 
Leave a comment