#self-employment

Self-Employment

Learn about self-employment taxes, LLC owner compensation, and freelancer financial management

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May 11, 202613 min read

Trader Tax Status and the Section 475(f) Mark-to-Market Election: How Active Traders Escape the Wash Sale Rule and the $3,000 Capital Loss Cap

Active traders can convert capital losses into ordinary deductions and eliminate the wash sale rule by filing a Section 475(f) mark-to-market election — but the statement must be attached to the prior year's April 15 return. A working guide to qualifying for trader tax status, the three big benefits of the election, Form 3115 mechanics, and the mistakes that invalidate it.

Mike Thrift

taxtax-planningtrades

May 10, 202614 min read

Hobby or Business? The IRS Section 183 Nine-Factor Test for 2026

How the IRS Section 183 nine-factor test decides whether your side activity's losses are deductible in 2026, what the three-of-five safe harbor really means, and what 2025's Young v. Commissioner reveals about the records that win in Tax Court.

Mike Thrift

taxtax-compliancetax-deductions

May 8, 202612 min read

Form 5500-EZ Solo 401(k) Filing Threshold: When Self-Employed Plans Cross the $250,000 Asset Trigger

A Solo 401(k) crosses into mandatory Form 5500-EZ filing once combined plan assets exceed $250,000 on the last day of the plan year. Late filings cost $250 per day up to $150,000 annually, but Rev. Proc. 2015-32 caps catch-up filings at $1,500 per plan if no penalty notice has been issued.

Mike Thrift

solo-401kretirement-planstax-compliance

May 8, 202612 min read

Section 183 Hobby Loss Rule: How the IRS Nine-Factor Test Decides If Your Side Activity Is a Business

Section 183 of the Internal Revenue Code denies loss deductions for activities not engaged in for profit. The IRS applies a nine-factor test and a three-of-five-years safe harbor (two of seven for horses) to distinguish a real business from a hobby — here is what each factor weighs and how to document profit motive before an audit.

Mike Thrift

taxtax-compliancetax-deductions

May 7, 202611 min read

Cash Balance Plans for High-Income Solo Practitioners: How Doctors, Lawyers, and Consultants Defer Six Figures Tax-Free

U.S. cash balance pension plans let solo doctors, attorneys, and consultants deduct $100,000–$370,000 a year on top of a Solo 401(k). 2026 contribution limits, a worked example for a 54-year-old physician, and the actuarial commitments to weigh before signing.

Mike Thrift

retirement-planstax-planningsolo-401k

May 7, 202611 min read

Disability Insurance for Self-Employed and Small Business Owners: A Practical Income-Protection Guide

US self-employed workers are far likelier to face disability than death before 65 — how federal tax treatment and premiums work.

Mike Thrift

insurancebusiness-insuranceself-employment

May 7, 202613 min read

EITC for Self-Employed Workers: Claim Up to $8,046 in 2025

Self-employed filers can claim the federal Earned Income Tax Credit on Schedule C net earnings, with a 2025 maximum of $8,046 for families with three or more children. This guide covers eligibility thresholds, how to compute earned income (including the half-SE-tax adjustment), the documentation that survives an audit, and the pitfalls that disqualify otherwise valid claims.

Mike Thrift

tax-creditsself-employmentfreelance

May 7, 202610 min read

Section 280F Luxury Auto Depreciation Limits: The SUV Loophole and How to Maximize Your Business Vehicle Write-Off

Section 280F caps first-year depreciation on passenger autos at $20,300 in 2026, but SUVs and trucks rated above 6,000 lbs GVWR escape those limits and can combine a $32,000 Section 179 deduction with 100% bonus depreciation. A practical guide to the 2026 numbers, the heavy-vehicle and pickup carve-outs, the 50% business-use cliff, and the mileage-log standards an IRS auditor expects.

Mike Thrift

taxtax-deductionstax-planning

May 1, 202611 min read

The QBI Deduction Decoded: How Section 199A Can Cut Your Tax Bill by 20%

Section 199A lets pass-through owners deduct up to 20% of qualified business income. This guide covers the 2026 thresholds, W-2 wage and UBIA limits, the SSTB trap, rental real estate safe harbor, the aggregation election, and the new $400 minimum deduction.

Mike Thrift

taxtax-deductionstax-planning

May 1, 202610 min read

Solo 401(k) vs SEP IRA: The Self-Employed Retirement Plan Decision That Could Save You Thousands

In 2026, a self-employed person earning $100,000 can contribute about $18,587 to a SEP IRA versus $43,087 to a Solo 401(k). This guide compares 2026 contribution limits, Roth options, December 31 deadlines, and Form 5500-EZ filing thresholds so freelancers and consultants can choose the right plan.

Mike Thrift

solo-401ksep-iraretirement-plans

April 26, 202614 min read

COVID-19 Relief Programs and Your Taxes: PPP, EIDL, and PUA Explained

Forgiven PPP loans are federally tax-free and the expenses paid with them remain fully deductible, but EIDL loans, EIDL Advance grants, and PUA benefits each carry distinct tax treatment — including a one-time $10,200 unemployment exclusion for 2020 under the American Rescue Plan.

Mike Thrift

pppsbaloan-forgiveness

April 26, 202613 min read

Self-Employment Tax Deductions 2026: A Complete Guide for Freelancers

A line-by-line guide to the deductions self-employed workers can claim in 2026, including the now-permanent 20% QBI deduction under OBBBA, $72,000 Solo 401(k) limits, the 72.5-cent IRS mileage rate, and the documentation rules that hold up under audit.

Mike Thrift

self-employment-taxtax-deductionsself-employment

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