If you’re self-employed, an independent contractor or the owner of a small business, you can really use some money-saving tax tips right now. After all, the total taxes on your net income as a sole proprietor can be as high as 55 percent. That’s because the top marginal federal tax rate is 39.6 percent and the self-employment, or SE, tax rate is 15.3 percent on every dollar of net profit earned up to $118,500.
On top of that you may have to add state income tax. For example, in New York City that can be 10.5 percent or more.
Fortunately, you can do a lot to cut down your tax liability because so many deductions are available.
Ray Martin | Moneywatch