It's tax time, again. Admittedly, it's probably not the favorite topic of consultants and freelancers, but tax time is upon us and there are some important changes for 2007 that can help put or keep more money in your pockets. For those who are self-employed (and not operating under a corporation), you should be receiving 1099s
in the mail so that you can prepare your SE tax
for the year.
As you do so, the National Association of the Self-Employed (NASE) is reminding independent contractors of several tax changes that you can take advantage of when fililng this year. In a press release from NASE, the organization highlighted these changes:
Standard Mileage Rates Adjusted. The standard mileage rate for business use of a car, van, pick-up or panel truck rose 4 cents to 48.5 cents per mile in 2007.
Self-Employment Tax Increase. The maximum amount of net earnings subject to the FICA portion of the self-employment tax for tax years beginning in 2007 has increased to $97,500. All net earnings of at least $400 are subject to the Medicare part of the tax.
Husband and Wife Business Definitions Change. As a result of the Small Business and Work Opportunity Tax Act of 2007, passed in mid-2007, qualified husband and wife ventures are no longer required to be treated as a partnership. Alternatively, each spouse can choose to report their share of earnings or losses from the venture without filing a partnership return.
These are only a few of the changes and NASE encourages you to consult with a tax professional to learn more. If you don't have your own advisor, you can also access qualified CPAs through NASE's TaxTalk program where you can submit a tax question.