Americans of all ages with summer income from self-employment may need to pay estimated tax on a quarterly basis in order to avoid IRS penalties. Alternatively, if you have self-employment earnings but also work as an employee, the IRS Withholding Estimator tool (link below) can help you determine the correct withholding amount to cover your income and self-employment tax responsibilities.
You may also qualify to reduce your tax by deducting business expenses. Our tax professionals at RTW Xxact can help you comply with record keeping requirements, and fully prepare for any tax implications of your summer endeavors.
Contact us today BUZ@RTWXXACT.COM.
IRS Withholding Estimator: https://www.irs.gov/individuals/tax-withholding-estimator
