Being self-employed offers freedom, flexibility — and a unique set of tax responsibilities. Whether you're a freelancer, independent contractor, or small business owner in Augusta, GA or Shreveport, LA, preparing your taxes the right way can help you avoid penalties, reduce your tax bill, and keep more of your hard-earned income.

In this blog, we'll cover what self-employed individuals need to know about tax preparation, key deductions to watch for, and where to find professional help in Augusta.

Who’s Considered Self-Employed?

You're considered self-employed if you:

Work as a freelancer or independent contractor

Own a sole proprietorship or single-member LLC

Operate a small business or side hustle

Earn 1099 income (instead of a W-2)

Even if your self-employed work is part-time, you're still responsible for reporting that income and paying the appropriate taxes.

Key Tax Responsibilities for the Self-Employed

1. Pay Self-Employment Tax

You’re responsible for both the employer and employee portions of Social Security and Medicare — a combined 15.3% on your net income.

2. File Quarterly Estimated Taxes

If you expect to owe more than $1,000 in taxes for the year, you must pay estimated taxes quarterly to avoid penalties.

3. Keep Accurate Records

Track all income and expenses year-round. Save receipts, mileage logs, invoices, and bank statements to back up your deductions.

Common Deductions for Self-Employed Individuals

Home Office Deduction (if used regularly and exclusively for business)

Internet and Phone Bills

Office Supplies & Equipment

Software and Subscriptions

Business Insurance

Vehicle Mileage or Expenses

Professional Services (marketing, web design, legal, accounting)

Continuing Education & Certifications

Properly tracking and claiming these can significantly reduce your taxable income.

Tools and Tips for Easier Tax Filing

Use accounting software like QuickBooks, FreshBooks, or Wave

Separate business and personal finances with a dedicated bank account

Store digital copies of receipts in the cloud

Consider working with a local tax professional familiar with self-employed returns in your state

Learn More :- https://cititaxpreparationaugusta.com/tax-preparation-and-refund-advances