NASE, the National Association for the Self-Employed, has published a short list of the tax changes for 2009 that affect self-employed taxpayers. The complete list can be found here, on their Web site. According to the NASE national tax advisor, Keith Hall, “The earlier a business owner can get organized, the more likely he or she will have the time to investigate eligibility requirements for additional tax benefits.”
Major changes affecting 2009 returns include:
- Making Work Pay Tax Credit – This $400 tax credit, or $800 if married filing jointly, is available for offsetting earned income, including self-employed income.
- Standard Mileage Rates – The rate for 2009 is 55 cents per business mile. This rate will be dropping to 50 cents per mile for 2010.
- Self-Employment Tax Changes – The tax rate for self-employed business owners remains at 15.3 percent, though the income threshold has increased to $106,000. All net earnings from self-employment of at least $400 are subject to this tax.
Deb Howard Greenleaf, EA, CEO and Principal, of Greenleaf Accounting Services provides virtual accounting and bookkeeping services and specializes in financial management to consultants, coaches, solo professionals, and other small business owners across the US. Deb is an Enrolled Agent (EA)—an IRS-licensed tax professional—and specializes in small businesses and entrepreneurs filing Schedule C or as an LLC. As an Advanced Certified QuickBooks ProAdvisor, Deb spends her day in QuickBooks Online and specializes in providing QBO support.