Do you pay taxes on the money you earn from your side hustle? If so, then he's a hack you'll want to know: Contributing to a SEP IRA can help lower your taxes as well as allow you to stash away more money for retirement! For years I’ve enjoyed making money on the side from blogging. But in the eyes of the government, that money is “business income”, and therefore taxable. So while it was fun to earn several thousand dollars per year, it wasn’t so great having to pay roughly a quarter of that money back into taxes every year. Just like all the steps I’ve taken to reduce my personal taxes down as much as possible, I knew there had to be a way to do the same with my business income. That’s when I discovered the SEP IRA. By … [Read more...] about How We’ve Saved $1,000’s in Taxes By Contributing to Our SEP IRA
SEP IRA
Extra Income Taxes – How I Messed Mine Up and What You Can Do to Get It Right
Even financial bloggers don’t always get everything right. This year I found out there is a dark side to earning a decent amount of passive income. While making money outside your job is absolutely great, you have to remember that at some point you have to report it all to the IRS. And that means paying a whole lot of extra income taxes! While the concept of having to paying taxes on your earnings is no secret to anyone, the way you have to go about it is a little bit more complicated than simply waiting until February and then paying in a thousand bucks one time. In fact because of the mistakes I made, I’ll likely have to pay a penalty for my negligence. If you’re someone who freelances or makes a decent amount of extra income … [Read more...] about Extra Income Taxes – How I Messed Mine Up and What You Can Do to Get It Right
