1. Andrew R. Schaefer, EA
321-872-7742
Andrew@InsightTaxServices.com
901 E. Washington St, Suite 3
Orlando, FL 32801

2. • Andrew’s Background
• The Enrolled Agent License
• Insight Tax Services – What We Do
• Small Businesses & Self-Employed

3. 1.
Taxes 101
2.
Immediate Strategies
3.
They Let Us Do That?!
4.
Questions & Answers

5. 1.
Payroll Tax
2.
Income Tax

6. Taxed upon employment income
to fund social programs.
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7. 1.
Payroll Tax
2.
Income Tax

8. Taxes all income “defined as
taxable” (not just employment)
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9. Marginal vs. Effective Tax Rates

10. FROM SCHEDULE C:
Gross Income
− Business Expenses
Net Income

Net Income
× 0.153*
Self Employment Tax



Net Income
− (adjustments, exemptions & deductions)
Gross Taxable Income
− Tax Credits
Net Taxable Income
× Various Tax Brackets per Filing Status
Net Income Tax

Self Employment Tax + Net Income Tax = Total Tax
*Assumes income <$113,700 for
simplicity of calculation.

11. Both pay almost exactly the same two taxes
(payroll and income).
What’s the problem?

12. Employees pay IRS out of each paycheck.
They don’t feel the pinch.
Self-employed people feel it!*
The solution?
• Quarterly estimated payments
• Implementing a tax strategy.
*This is excellent job security for Andrew

13. 1.
Taxes 101
2.
Immediate Strategies
3.
They Let Us Do That?!
4.
Questions & Answers

14. FROM SCHEDULE C:
Gross Income
− Business Expenses
Net Income

Net Income
× 0.153*
Self Employment Tax



Net Income
− (adjustments, exemptions & deductions)
Gross Taxable Income
− Tax Credits
Net Taxable Income
× Various Tax Brackets per Filing Status
Net Income Tax

Self Employment Tax + Net Income Tax = Total Tax
*Assumes income <$113,700 for
simplicity of calculation.

15. Marginal Tax Rates
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16. FROM SCHEDULE C:
Gross Income
− Business Expenses
Net Income

Net Income
× 0.153*
Self Employment Tax



Net Income
− (adjustments, exemptions & deductions)
Gross Taxable Income
− Tax Credits
Net Taxable Income
× Various Tax Brackets per Filing Status
Net Income Tax

Self Employment Tax + Net Income Tax = Total Tax
*Assumes income <$113,700 for
simplicity of calculation.

17. It doesn’t matter what you
make…
it's what you keep.
15.3% SE Tax
25% Marginal
Income Tax

18. Get a System
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19. Know What Counts
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Ordinary & Reasonable

20. FROM SCHEDULE C:
Gross Income
− Business Expenses
Net Income

Not if you want to go
home today.
Net Income
− (adjustments, exemptions & deductions)
Gross Taxable Income
− Tax Credits
Net Taxable Income
× Various Tax Brackets per Filing Status
Net Income Tax

Self Employment Tax + Net Income Tax = Total Tax

21. 1.
Taxes 101
2.
Immediate Strategies
3.
They Let Us Do That?!
4.
Questions & Answers

22. Know your limitations
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23. Tax exclusion for capital gains on qualifying main home

24. Qualifying for & using the exclusion
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1,250,000
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Five year window
2+ years owned
1,000,000
2+ years main home
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750,000
Added
Prior
500,000
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Compatible with inflation
250,000
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Exclusion on gains
0
2016 2018 2020 2022 2024

25. Don’t pay more self employment tax than required


26. Let’s reduce this
type of
income…
FROM SCHEDULE C:
Gross Income
− Business Expenses
Net Income

Net Income
Net Income
− (adjustments, exemptions & deductions)
× 0.153*
Gross Taxable Income
Self Employment Tax
− Tax Credits
…to avoid too
Net Taxable Income

much of this tax.
× Various Tax Brackets per Filing Status
Net Income Tax


Self Employment Tax + Net Income Tax = Total Tax

*Assumes income <$113,700 for
simplicity of calculation.

27. Income derived from labor = SE tax + income tax
Passive income = usually just income tax
Potential Solution: S-Corporation & Payroll

28. S-Corporation & Payroll
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GlassDoor.com
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Quarterly: IRS Form 941
Monster.com
Don’t get greedy
Don’t make the IRS agent laugh
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Quarterly: FDOR Form RT-6
Annual: IRS Forms 1120S, 940, W2, W3

29. Consider your filing status
Don’t let tax law
determine whether you
marry or divorce.
Net Income
− (adjustments, exemptions & deductions)
Gross Taxable Income
− Tax Credits
Net Taxable Income
× Various Tax Brackets per Filing Status
Net Income Tax

30. Consider your filing status
Don’t let tax law
determine whether you
marry or divorce.
OK, maybe consider it a
little.
Net Income
− (adjustments, exemptions & deductions)
Gross Taxable Income
− Tax Credits
Net Taxable Income
× Various Tax Brackets per Filing Status
Net Income Tax

31. Consider your filing status
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32. 1.
Taxes 101
2.
Immediate Strategies
3.
They Let Us Do That?!
4.
Questions & Answers