Self-Employment & Additional Income Considerations

Learn how to document your home office, manage multiple income streams, and plan quarterly payments to avoid penalties.

Tips & Tricks

Separate Finances

Keep business and personal finances strictly separate.

1

Use Accounting Software

Track income and expenses with tools designed for self-employed individuals.

2

Maintain Detailed Expense Logs

Record every business expense, including receipts and invoices.

3

Document Home Office Use

Keep records of home office expenses and related utilities.

4

Track Mileage

Log business travel and mileage accurately.

5

Plan Quarterly Payments

Estimate and pay quarterly taxes to avoid penalties.

6

Record Cash Transactions

Meticulously document all cash-based income and expenses.

7

Organize Digital Records

Digitize business records for easy access and backup.

8

Monitor Multiple Income Streams

Track income from various freelance or consulting projects.

9

Review Schedule C Requirements

Regularly consult Schedule C guidelines to ensure accurate reporting.

10

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