ToolGuy

For the past five or so years I have been getting my 1099's from my sponsors, writing off things such as hosting, domain names, computers parts and office/room space then paying the 40-50% taxes on what is left over which really sucks...lol

My question is do any of you have any good methods on reducing your self employment taxes. Does becoming incorporated help that much? How about tax deferred IRA's or any other long term investments?

I know taxes are inevitable and must be paid but there must be some ways to get the percentage or to earn more on the money set aside to pay the taxes at the end of the year so lets hear them

Also just to let some new comers to this industry know, if you get a 1099 your best bet is to pay the taxes on it and be sure you get them all before you file. Two years ago I filed my taxes, thought all was well until I had my mail from my previous address sent to me where I had recieved two more 1099's which I didn't include in my return. I thought I would just forget about it since it was only about 2k but then about 8 months later I got a bill from the IRS for the taxes due along with their nice fines and ended up paying almost twice as much after the accountants fees.

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