Berdon Blogs

TAX TALK: More Tax Considerations for the Self-Employed (Part II)

Posted by Hal Zemel, CPA, J.D., LL.M. on Nov 7, 2016 7:00:00 AM
Find me on:

In addition to the previously discussed deductions available to the self-employed, there are at least two other considerations regarding timing and quarterly payments that the self-employed individual should consider.

If your wages or self-employment income varies significantly from year to year or you are close to the threshold for triggering the additional Medicare tax, income timing strategies may help you avoid or minimize it.

For example, as a self-employed taxpayer, you may have flexibility on when you pay expenses or invoice customers (see previous blog: Timing Your Business Income and Expenses). If your self-employment income is from a part-time activity and you are also an employee elsewhere, perhaps you can time with your employer when you receive a bonus.

Finally, if you are an employee, your employer will withhold your income taxes and your half of the employment taxes from your gross wages and together with their half of the employment taxes, remit the total to the government. If you are self-employed, you are required to make quarterly estimated payments to the government to cover both your income taxes and your self-employment taxes.

For more information on the benefits and burdens of the self-employed, please contact me at or your Berdon advisor.

Hal Zemel, a Tax Principal at Berdon LLP, New York Accountants, has more than 20 years in public accounting and advises businesses in the real estate, service, and manufacturing sectors.

Topics: TAX TALK

About Berdon Blogs

Our experts examine the latest trends, economics, business conditions and industry issues to provide timely information you need to maximize your tax advantages and meet your financial goals.

SALT TALK: Hear an insider’s perspective on the business issues, legislative updates in state and local tax, and tax aspects behind today’s headlines.

T&E TALK: Gain insights into how changes in tax laws, shifts in the financial markets, and regulatory concerns will impact assets and affect preserving and transferring wealth.

TAX TALK: Get an all-inclusive perspective on regulatory changes, industry issues, and trends from our team of multidisciplinary tax professionals – many of whom also hold J.D. and LL.M degrees.

Subscribe to Berdon Blogs

Recent Posts