Self-Employed in Florida? Don’t Overlook These Key Tax Obligations
Florida is home to thousands of self-employed individuals, many of whom work as consultants, freelancers, gig workers, small business owners, and independent contractors. People in these positions enjoy the freedom and flexibility of working for themselves, but with that freedom comes increased responsibility, particularly when it comes to tax compliance.
At Ronald Cutler, P.A., we help self-employed clients stay on top of their taxes and avoid time-consuming and costly problems. Our experienced Florida tax-IRS attorney explains key tax obligations you need to be aware of and how to avoid potentially harsh penalties.
Essential Tax Duties for Self-Employed Workers In Florida
The U.S. Chamber of Commerce reports that Florida has some of the highest numbers of self-employed people in the country, estimated at as many as three million. Unlike employees who get a W-2, these workers are responsible for handling all their own tax obligations, including income tax and self-employment tax, which covers Social Security and Medicare.
If you make $400 or more in self-employment income in a given year, the IRS considers you self-employed. In addition to filing an annual federal income tax return, they expect you to:
- Pay self-employment tax, currently 15.3% (12.4% for Social Security, 2.9% for Medicare).
- Make estimated quarterly tax payments, which are due in April, June, September, and January.
- Report all income, including cash and third-party platform payments like PayPal or Venmo.
- Track and document deductible expenses such as mileage, home office use, supplies, and marketing costs.
Even if your business is small or part-time, not complying with these rules can trigger IRS audits, penalties, or interest charges.
How to Stay Compliant and Reduce Your Tax Burden When You Are Self-Employed
Managing taxes when you are self-employed can be overwhelming, especially if your income varies or you’re not familiar with federal tax requirements. However, with smart planning, you can stay compliant and minimize what you owe. Key strategies the IRS recommends include:
- Set aside taxes from each payment, rather than waiting to pay at the end of the year.
- Use bookkeeping software for tracking income and expenses in real time.
- Claim all eligible deductions, including mileage, internet, equipment, and health insurance premiums.
- Keep receipts and records for at least three years.
- Work with a qualified tax-IRS attorney or CPA to avoid errors and make timely quarterly payments.
Keep in mind that underreporting income or missing deadlines, even unintentionally, can lead to audits or collections.
For Trusted Tax Guidance, Contact Our Experienced Florida Tax-IRS Attorney
Being your own boss comes with great rewards, but it also comes with serious tax responsibilities. If you’re self-employed in Florida and uncertain about your tax obligations or are facing an IRS notice, get help before the problem grows.
At Ronald Cutler, P.A., we help self-employed individuals successfully handle their state and federal tax returns. With over 50 years of experience as a CPA and former FBI Special Agent, our Florida tax-IRS attorney provides trusted tax guidance to prevent potential problems and protect your financial best interests. Contact our office to schedule a consultation today.
Sources:
chamberofcommerce.org/cities-with-most-self-employed
irs.gov/businesses/small-businesses-self-employed/self-employment-tax-social-security-and-medicare-taxes
irs.gov/forms-pubs/about-publication-334
