4. You started your own business
The Internal Revenue Service sees you as self-employed when you work for yourself. This not only affects your tax liability, it also affects the tax breaks you qualify for.
Let’s see: the forms you will complete in order to report your income and expenses are quite different than if you were traditionally employed. Once you became self-employed, you’re also responsible for the self-employment tax (15.3% on the first $132,900 of net income earned).
Plus, you’re entitled to unique tax deductions for certain things such as mileage, home office space and marketing materials.
