McAnally's (The Community Pub) > Author Craft
Practical aspects of professional writing. TAXES
meg_evonne:
Richelle, ask your CPA about incorporating. You pay yourself a smaller salary (make the FICA even lower by dumping as much as you can into a SIMPLE IRA), then pay yourself dividends which bypass FICA completely and are (or will be) lower than your tax rate. I think you get to deduct your health insurance premiums as well that way as a direct expense. Just put away for retirement as your Social Security draw will be very low.
Incorporating is a simple matter of filling out a form and having an annual meeting, (anywhere you'd like to have it on the globe).
gravesbane:
Kool thanks for that tid bit.
Yeratel:
--- Quote from: meg_evonne on June 30, 2008, 02:49:02 PM ---Incorporating is a simple matter of filling out a form and having an annual meeting, (anywhere you'd like to have it on the globe).
--- End quote ---
Just as a subnote, writing off travel expenses for your annual S-corporation meeting in Hawaii is a good way to attract the attention of the I.R.S. auditors.
meg_evonne:
Really? Well-we usually just drive to Chicago and see the cubbies! I have used two overseas trips and luckily nothing triggered. You only get to write off one day plus travel, (which is the most expensive day your are there of course) but if one were a writer there surely would be the excuse of research? :-)
I will also contact and visit a State Farm office. We share ideas (such as tax tips), management ideas, office building etc...so I write off that day as well.
Richelle Mead:
I believe my CPA did mention incorporating at one time, but for whatever reason, it didn't seem like the best choice. Things keep changing with my career each year, though, so who knows what'll happen in the future? I do have a SEP IRA right now that I really should be putting money into vs. my savings account. The nice thing is that when you do taxes and decide you'd benefit from putting some of the money away, you can then put something in the IRA for the previous year, so long as it's done before April 15. If that makes any sense.
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