How to file taxes as a Tax Preparer
As a Tax Preparer, you are likely classified as an independent contractor (1099). This means taxes are not automatically withheld from your paychecks. You are responsible for paying:
- Self-Employment Tax: 15.3% (Covering Social Security and Medicare)
- Federal Income Tax: Based on your tax bracket
- State Income Tax: Depending on where you live
The good news is that you can lower your taxable income by deducting "ordinary and necessary" business expenses. Use the list above to find write-offs specific to the Finance & Accounting industry.