Tax Preparation for Self-Employed Professionals
Comprehensive Schedule C services for sole proprietors and independent contractors.
Income Reconciliation
Complete reporting of all business income from various sources and payment methods.
1099-NEC Reporting
We reconcile all 1099-NEC forms against your business records to ensure complete and accurate income reporting.
1099-K Review
For payment processors issuing Form 1099-K, we review these forms and reconcile with other income records to avoid double-reporting.
Cash Income Documentation
We establish procedures for documenting and reporting cash income received that may not appear on information returns.
Income Classification
We review income sources to ensure proper classification between business income, investment income, and other categories.
Deduction Review
Structured review of deductible business expenses with emphasis on documentation and compliance.
Ordinary & Necessary Expenses
We identify deductible expenses that are ordinary and necessary to your trade or business, including advertising, insurance, and professional fees.
Mileage & Vehicle Expenses
We review mileage logs and vehicle expense records, explaining the options between standard mileage rate and actual expense methods.
Home Office Deduction
We evaluate eligibility for the home office deduction based on regular and exclusive use of a portion of your home for business.
Business Use of Personal Assets
We review allocation of expenses for assets used partially for business, such as cell phones and internet service.
Depreciation & Equipment
Proper treatment of business assets and capital expenditures.
Equipment Depreciation
We identify depreciable business equipment and apply appropriate depreciation methods based on asset class and recovery period.
Section 179 Expensing
We evaluate whether Section 179 expensing provides tax advantages for qualified business property purchases.
Bonus Depreciation
We review eligibility for bonus depreciation on qualified assets when applicable.
Asset Records
We provide guidance on maintaining records of asset acquisitions, including costs, dates placed in service, and business use percentage.
Estimated Tax Planning
Proactive management of tax payments throughout the year.
Quarterly Calculations
We calculate estimated tax payments due quarterly to avoid underpayment penalties and manage cash flow.
Safe Harbor Rules
We explain safe harbor rules that can help avoid penalties, including the 100% of prior-year tax and 110% rules for higher-income taxpayers.
Income Projection
We project annual income based on year-to-date results and expected business activity to estimate tax liability.
Payment Vouchers
We provide Form 1040-ES payment vouchers with recommended payment amounts for each quarterly deadline.
Retirement Planning Considerations
Tax-advantaged retirement savings options for self-employed individuals.
SEP IRA Contributions
We evaluate SEP IRA eligibility and calculate contribution limits based on net self-employment income.
Solo 401(k) Plans
We discuss solo 401(k) options for self-employed individuals without employees, including contribution limits.
Traditional and Roth IRAs
We review eligibility for traditional and Roth IRA contributions based on income and filing status.
Contribution Deadlines
We provide guidance on contribution deadlines for different retirement account types.
Upload Your Documents
Snap photos of your 1099s, W-2s, and other documents. Upload through our secure mobile-first portal.
We Prepare Your Return
Our team reviews your documents, finds deductions, and prepares your return with thorough accuracy checks.
Review & E-File
Review your completed return with us, then we e-file and provide digital copies for your records.
Frequently Asked Questions
Common questions about tax preparation for self-employed professionals.
What is the difference between a hobby and a business for tax purposes?
The IRS considers several factors including whether you operate in a businesslike manner, whether you maintain complete and accurate books, whether the activity is profitable in some years, and whether you depend on the activity for your livelihood. Consistent profitable operations strengthen the case for a business.
Do I need to make quarterly estimated tax payments?
If you expect to owe $1,000 or more in tax for the year, you generally must make quarterly estimated payments to avoid underpayment penalties. We calculate your required payments based on your expected income and apply safe harbor rules to minimize penalties.
Can I deduct expenses paid from my personal bank account?
Yes, business expenses are deductible regardless of which account pays them, provided they are ordinary and necessary business expenses. However, maintaining separate business accounts simplifies recordkeeping and provides clearer documentation of business activities.
What retirement savings options are available to me?
Self-employed individuals have several options including SEP IRA, Solo 401(k), traditional IRA, and Roth IRA. Contribution limits and eligibility vary based on your net earnings and other factors. We can explain each option and help determine which is most appropriate.
How do I handle home office deductions?
To qualify, you must use a portion of your home regularly and exclusively for business. The space can be a room or a separately identifiable area. You can deduct a portion of rent, mortgage interest, utilities, insurance, and repairs based on the percentage of your home used for business.
What happens if my business shows a loss?
Business losses can offset other income on your tax return, reducing overall tax liability. However, the IRS may scrutinize businesses that report losses in multiple years, particularly if the activity appears to be a hobby. We maintain documentation to support your business intent.
Begin Your Tax Preparation
Complete our secure intake form to provide information about your self-employment income.