Keep track of your income and expenses. This is crucial when you're self-employed because you'll need to report your earnings and expenses on your tax return.
Self-employed individuals are responsible for paying self-employment tax, which covers Social Security and Medicare. Depending on your income, you may also be subject to federal and state income taxes.
Take advantage of deductions. As a self-employed individual, you may be able to deduct expenses related to your business, such as home office expenses, travel expenses, and equipment purchases.
File your taxes on time. Self-employed individuals are required to file taxes by April 15th each year.