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If you want evidence of the complete worthlessness of this article, here it is: they list the self-employed tax deduction as a "tax advantage." This despite th
by jfruh 15y ago
If you want evidence of the complete worthlessness of this article, here it is: they list the self-employed tax deduction as a "tax advantage." This despite the fact that it only partially offsets the self-employment tax. You pay more taxes on self-employment income, not less.
(Technically, of course, the self-employment tax is the equivalent of the portion of your payroll taxes that your employer pays on your behalf, which don't appear on your paystub. In practice, of course, your employer factors these taxes into your total compensation, and they affect what kind of salary they offer you, so it's silly to argue that you're not the one paying them in the long run. But the reality is that you pay more taxes on $50,000 of freelance income than you pay on $50,000 of salary.)