- 1). Pull out a copy of your most recent tax return and review our self-employment income and self-employment taxes. This will give you a good baseline going forward.
- 2). Invest in a quality tax preparation software package. Make sure you get the premium version of the package--the premium version will include the forms you need to report self-employment income and plan your taxes.
- 3). Open a SEP-IRA account to save money on your taxes and put away money for a comfortable retirement. If you already have an account with a brokerage firm or mutual fund family you can use that firm to open your SEP-IRA.
- 4). Open a health savings account, or HSA, as a means to save money on taxes and put money aside to pay healthcare expenses. In order to use an HSA account, you need to participate in a high deductible health plan, or HDHP. You can contact your insurance broker to see if your individually purchased health plan qualifies for an HSA. If you do qualify, opening an HSA can save you a lot on your self-employment taxes.
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