When filing your taxes as a self-employed individual, tax write-offs are your best bet for lowering your self-employment taxes. You can use a
self-employment income tax calculator to get a detailed breakdown of your tax liability.
And apart from the main
Form 1040 that every taxpayer will file, you will also need to file
Schedule C. This is where you will record all your tax deductions, including credit card interest. It will go on Line 16 labeled “Interest” in box 16b labeled “Other.”
Self-employed individuals also have to make quarterly tax payments, the amount of which you can determine with a
quarterly tax calculator. You only need to make this payment if you owe over $1,000 in tax for that calendar year.
Not everyone can pay their tax liability by the tax deadline. Use a
tax penalty calculator to check whether you owe the IRS any penalty fees.
Credit card interest is not the only tax deductible a credit card can get you. We mentioned earlier that getting a credit card just for business use is a good idea if you want to keep track of your expenses easily. But that's not the only benefit it offers self-employed individuals.