Income Tax Preparation When You're Self-Employed from Udemy

This new course is designed for freelancers, entrepreneurs, and side hustlers that don't want to pay more in taxes than they are legally required to. It is a simplified view of the taxes that may apply to those with self-employment income. The principles discussed don't change even when the tax law does.

In this course you will:

Learn to legally save on taxes, penalties, and interest you may be required to pay each year
Learn how to make estimated tax payments to avoid penalties and interest
Understand the business deductions that may be available to you
Know what forms you are required to file with your taxes from your self-employment income
Learn how to track income and expenses to reduce taxable net income
Become comfortable with any questions you may be asked by tax professionals or software regarding your business operations

Stop being confused and frustrated by the taxes you are paying on income received by being self-employed. Whether you are a side-hustler with just a little income or your sole-proprietorship supports you financially, the material provided in this course can help you keep more of your hard-earned money in your own pocket.

Enroll now and be one step closer to saving money on your taxes year after year.

What's inside

Learning objectives

Learn how you can legally save hundreds of dollars in taxes, penalties, and interest you may be required to pay each year
Know when and how to make estimated tax payments to avoid penalties and interest
Understand the business deductions that may be available to you

Learn how to track income and expenses to reduce taxable net income
Know what forms you are required to file with your taxes from your self-employment income
Understand the questions asked by a tax professional or software about business operations

Learn how you can legally save hundreds of dollars in taxes, penalties, and interest you may be required to pay each year
Know when and how to make estimated tax payments to avoid penalties and interest
Understand the business deductions that may be available to you
Learn how to track income and expenses to reduce taxable net income
Know what forms you are required to file with your taxes from your self-employment income
Understand the questions asked by a tax professional or software about business operations

Syllabus

Introduction

Learn how to track income and expenses to reduce taxable net income

Economic Entity Assumption

A quiz to test your ability to separate business and personal expenses.

Differentiate between multiple businesses and determine net income.

Calculate the amount of car or truck expenses that can be deducted using both the standard and actual rates.

Determine how to make estimated payments and how much each should be.

Calculate the amount of self-employment taxes owed on self-employment income.

Traffic lights

Read about what's good

what should give you pause

and possible dealbreakers

Simplifies self-employment taxes, which can be complex and confusing for those new to freelancing or entrepreneurship

Focuses on legally saving on taxes, penalties, and interest, which is a primary concern for self-employed individuals

Covers estimated tax payments, which are essential for self-employed individuals to avoid penalties

Explains business deductions, which can significantly reduce the taxable income of self-employed individuals

Teaches how to track income and expenses, which is crucial for accurate tax reporting and maximizing deductions

Familiarizes learners with tax forms and terminology, which can increase confidence when dealing with taxes

Reviews summary

Self-employment tax basics overview

learners say this course provides a good solid overview, particularly for those who are a self-employed single member LLC or a sole proprietorship. It serves as a starting point but is described as high level, suggesting you'll likely need more detailed information afterward. It is explicitly stated that if you have a partnership, corporation, or an S-corp, you will need more information from another source. Despite its limitations in depth and scope, the information covered is considered good solid information.

Best for single-member LLCs and sole proprietors.

"good solid overview course for anyone that is a self-employed single member LLC, or a sole proprietorship."

"This course is good for a starting point for the target audience"

Provides basics but more detail may be needed later.

"This course is good for a starting point"

"is high level and you will most likely need more detailed information after you understand the basics covered here."

Requires more info for partnerships, S-corps, corporations.

"If you have a partnership, corporation, or an S-corp, you will need more information from another source."

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in Income Tax Preparation When You're Self-Employed with these activities:

Review Basic Accounting Principles

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Reinforce your understanding of fundamental accounting principles to better grasp income and expense tracking.

Browse courses on Accounting Principles

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Review the accounting equation (Assets = Liabilities + Equity).
Study the difference between debits and credits.
Practice journal entries for common business transactions.

Read "Tax Guide for Small Business"

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Familiarize yourself with IRS guidelines for small businesses to gain a deeper understanding of tax regulations.

View Tax Guide 2016 for Individuals: Publication 17 on Amazon

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Obtain the latest version of the IRS "Tax Guide for Small Business" (Publication 334).
Read the sections relevant to your specific business structure and industry.
Take notes on key deductions and credits you may be eligible for.

Track Business Expenses for a Month

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Practice tracking income and expenses to solidify your understanding of Schedule C reporting.

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Set up a spreadsheet or use accounting software to record all business income and expenses.
Categorize each transaction according to Schedule C expense categories.
Reconcile your records with bank statements and receipts.

Four other activities

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Create a Tax Calendar

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Develop a personalized tax calendar to track important deadlines and payment dates.

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Identify all relevant tax deadlines for your business.
Create a calendar with reminders for each deadline.
Set up alerts to ensure you don't miss any important dates.

Calculate Estimated Tax Payments

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Practice calculating estimated tax payments to avoid penalties and interest.

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Estimate your self-employment income for the year.
Calculate your estimated self-employment tax liability.
Determine the amount and timing of your quarterly estimated tax payments.

Create a Deduction Checklist

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Compile a personalized checklist of potential deductions to ensure you don't miss any opportunities to reduce your taxable income.

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Research common deductions for your industry and business type.
Create a checklist with descriptions and requirements for each deduction.
Review the checklist regularly to ensure you are taking advantage of all eligible deductions.

Read "J.K. Lasser's Guide to Self-Employment Taxes"

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Deepen your understanding of self-employment taxes with a comprehensive guide.

View J.K. Lasser's Small Business Taxes 2025: Your... on Amazon

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Obtain a copy of "J.K. Lasser's Guide to Self-Employment Taxes".
Read the chapters relevant to your specific tax situation.
Take notes on key strategies for minimizing your tax liability.

Career center

Learners who complete Income Tax Preparation When You're Self-Employed will develop knowledge and skills that may be useful to these careers:

Entrepreneur

Entrepreneurs, like freelancers, may struggle with income tax preparation. This course is designed for entrepreneurs and teaches them how to save on taxes, interest, and penalties. The course also covers when and how to make estimated tax payments, what business deductions may be available, and what forms are required to file with your taxes.

See salaries and explore the career path for Entrepreneur

Business Owner

A business owner manages all aspects of a company. This course helps a business owner manage his or her taxes and can be especially impactful for sole proprietorships. The course teaches how to save on taxes, penalties, and interest, how to make estimated tax payments, what business deductions may be available, what forms are required to file, and how to track income and expenses. A business owner who can do these things saves time and money.

See salaries and explore the career path for Business Owner

Side Hustler

Many people want to earn extra money on the side to supplement their traditional income. Side hustlers can use this course to save money on their taxes. In the course, side hustlers will find a simplified view of the taxes that may apply to those with self-employment income. The course covers how to legally save on taxes, interest, and penalties. The course also covers when and how to make estimated tax payments, what business deductions may be available, and what forms are required to file with your taxes.

See salaries and explore the career path for Side Hustler

Freelancer

Many companies employ freelancers to perform certain tasks without hiring a full-time employee. This course is directly applicable because it is designed for freelancers who don't want to pay more in taxes than they are legally required to. They will learn in the course how to file their taxes correctly, how to save money on taxes, and how to make estimated payments.

See salaries and explore the career path for Freelancer

Sole Proprietor

A sole proprietor owns and runs their own business. Typically, there is no distinction between the business and the owner, meaning that the owner is directly liable for the business's financial obligations. The course teaches sole proprietors how to save on taxes, interest, and penalties. The course also covers when and how to make estimated tax payments, what business deductions may be available, and what forms are required to file with your taxes. A sole proprietor who takes this course will have a better understanding of their financial obligations.

See salaries and explore the career path for Sole Proprietor

Tax Preparer

Tax preparers assist individuals and businesses in filing their taxes accurately and efficiently. This course directly relates to this role, as it focuses on income tax preparation specifically for self-employed individuals. The course teaches how to legally save on taxes, understand business deductions, and accurately report income and expenses. These skills are essential for a Tax Preparer who needs to advise clients on tax strategies and ensure compliance with tax laws. Moreover, understanding the forms required for self-employment income and how to navigate tax software or professional consultations are valuable assets for a Tax Preparer.

See salaries and explore the career path for Tax Preparer

Real Estate Agent

A real estate agent helps clients buy, sell, and rent properties. As a real estate agent, one is typically self-employed, or an independent contractor. This course may be extremely useful because agents can learn how to save on taxes, avoid penalties and interest, and how to make estimated tax payments. They can also learn what forms may be required to file with their taxes.

See salaries and explore the career path for Real Estate Agent

Bookkeeper

A bookkeeper records financial transactions, including income and expenses. This course, designed for freelancers and entrepreneurs, directly applies to the core responsibilities of a Bookkeeper who must meticulously track income and expenses to accurately reflect a business's financial status. By understanding how to track income and expenses to reduce taxable net income, as taught in the course, a bookkeeper can ensure accurate financial reporting and assist in tax preparation. Furthermore, familiarity with business deductions and relevant tax forms, also covered in the course, helps a Bookkeeper manage financial records effectively and prepare for tax season.

See salaries and explore the career path for Bookkeeper

Tax Consultant

Tax consultants advise businesses and individuals about how to minimize their tax obligations and remain compliant with the law. The course may be useful because it is focused on freelancers, side hustlers, and entrepreneurs. The course covers how to legally save on taxes, how to make the correct tax payments, and what forms are required to file.

See salaries and explore the career path for Tax Consultant

Accounting Assistant

Accounting assistants provide support to accountants and bookkeepers, often assisting with tasks such as data entry, reconciliation, and financial reporting. The course may be useful for accounting assistants who work with self-employed clients or businesses. The course teaches how to track income and expenses, understand business deductions, and prepare relevant tax forms. This knowledge would help an accounting assistant accurately record financial transactions and assist in the preparation of tax documents. The skills gained about differentiating between business and personal expenses would also be valuable for an accounting assistant.

See salaries and explore the career path for Accounting Assistant

Small Business Consultant

Small business consultants advise small businesses on various aspects of their operations, including financial management and tax planning. This course may be useful for a consultant focused on helping self-employed individuals. The curriculum's insights into business deductions, estimated tax payments, and self-employment taxes can inform a consultant's advice to clients. A consultant can also guide clients in choosing appropriate tax professionals or software, based on the knowledge gained from the course. By understanding tax implications for self-employed individuals, a consultant helps clients optimize their financial strategies.

See salaries and explore the career path for Small Business Consultant

Financial Advisor

Financial advisors provide guidance to clients on managing their finances, including investments, retirement planning, and tax strategies. While this course focuses on a specific area of taxation for the self-employed, the knowledge of tax deductions, estimated payments, and self-employment taxes can be valuable for a Financial Advisor. The course can help a financial planner understand the tax implications of self-employment income, assisting them in creating comprehensive financial plans for clients who are freelancers or entrepreneurs. The principles of legally saving on taxes, penalties, and interest, highlighted in this course, inform a holistic approach to financial planning.

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Revenue Agent

Revenue agents assess and collect taxes. This course may be useful because it familiarizes future revenue agents with the taxes of the self-employed. Specifically, they can learn how to track income and expenses to reduce taxable net income and become comfortable with any questions from tax professionals.

See salaries and explore the career path for Revenue Agent

Auditor

Auditors examine financial records to ensure accuracy and compliance with regulations. While this course doesn't make someone job-ready as an auditor, it may promote a more comprehensive understanding of the tax landscape for self-employed individuals. This is particularly useful for those working with these individuals or small businesses. The course goes over how to track income and expenses, how to legally save on taxes, and what forms are required to file. This may help an auditor better identify potential issues during a review.

See salaries and explore the career path for Auditor

Underwriter

Underwriters evaluate risk and determine whether to provide insurance. The course may be useful because it ensures a comprehensive understanding of the tax landscape for self-employed individuals. The course covers how to track income and expenses, and how to save in taxes, penalties, and interest. It may also familiarize underwriters with tax audits.

See salaries and explore the career path for Underwriter

Reading list

We've selected two books that we think will supplement your learning. Use these to develop background knowledge, enrich your coursework, and gain a deeper understanding of the topics covered in Income Tax Preparation When You're Self-Employed.

Tax Guide 2016 for Individuals

Save

This IRS publication provides a comprehensive overview of tax obligations for small businesses and self-employed individuals. It covers various topics, including deductions, credits, and filing requirements. It useful reference tool for understanding the tax implications of self-employment income. It is commonly used as a reference by tax professionals.

Tax Guide 2016 for Individuals: Publication 17

Paperback

J.K. Lasser's Small Business Taxes 2025

Save

Provides detailed guidance on self-employment taxes, including strategies for minimizing your tax liability. It covers topics such as deductions, credits, and retirement planning. It is more valuable as additional reading than it is as a current reference. It adds more depth to the existing course.

J.K. Lasser's Small Business Taxes 2025: Your...

Paperback

Income Tax Preparation When You're Self-Employed

What's inside

Learning objectives

Syllabus

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Save this course

Reviews summary

Self-employment tax basics overview

Activities

Career center

Reading list

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